Current Issues In Marketing

EGE UNIVERSITY

Current issues in Marketing

Proposal:
Customer Relationship Management in Banking Services

Name : Jorge Ramos Martínez
Erasmus; University of Oviedo,Spain

Cover
Table of Contents
Abstract
1. Customer Relationship Management
2. CRMObjectives in Banking Sector
3. A Model Design for CRM at Garanti Bank
* 3.1 CRM Development
3.2. Data Warehouse and Data Mining
3.3. Marketing Campaign
4. Research
4.1. Types of market research
5.1.1. Descriptive research
5.1.2. Investigation of cause
5.1.3. Prediction research
4.2. Research methodologie
Conclusion
REFERENCES


AbstractToday, many businesses such as banks, insurance companies, and other service
providers realize the importance of Customer Relationship Management (CRM) and
its potential to help them acquire new customers, retain existing ones and maximize
their lifetime value. At this point, close relationship with customers will require a
strong coordination between IT and marketing departments to provide along-term
retention of selected customers. This paper deals with the role of Customer
Relationship Management in banking sector and the need for Customer Relationship
Management to increase customer value by using some analitycal methods in CRM
applications.
CRM is a sound business strategy to identify the bank’s most profitable
customers and prospects, and devotes time and attention toexpanding account
relationships with those customers through individualized marketing, repricing,
discretionary decision making, and customized service-all delivered through the
various sales channels that the bank uses. Under this case study, a campaign
management in a bank is conducted using data mining tasks such as dependency
analysis, cluster profile analysis, concept description,deviation detection, and data
visualization. Crucial business decisions with this campaign are made by extracting
valid, previously unknown and ultimately comprehensible and actionable knowledge
from large databases.
The model developed here answers what the different customer segments are,
who more likely to respond to a given offer is, which customers are the bank likely to
lose, who most likelyto default on credit cards is, what the risk associated with this loan
applicant is. Finally, a cluster profile analysis is used for revealing the distinct
characteristics of each cluster, and for modeling product propensity, which should be
implemented in order to increase the sales.

1. Customer Relationship Management
In literature, many definitions were given to describe CRM. The maindifference
among these definitions is technological and relationship aspects of CRM. Some
authors from marketing background emphasize technological side of CRM while the
others considers IT perspective of CRM. From marketing aspect, CRM is defined like
“.. a combination of business process and technology that seeks to understand a
company’s customers from the perspective of who they are, whatthey do, and what
they are like”.
Consequently, IT and marketing departments must work closely to implement
CRM efficiently.
2. CRM Objectives in Banking Sector
The idea of CRM is that it helps businesses use technology and human resources
gain insight into the behavior of customers and the value of those customers.
If it works as hoped, a business can: provide better customer service, makecall
centers more efficient, cross sell products more effectively, help sales staff close deals
faster, simplify marketing and sales processes, discover new customers, and increase
customer revenues.
It doesn't happen by simply buying software and installing it. For CRM to be
truly effective, an organization must first decide what kind of customer information it is
looking for and it must...