ABSTRACT: The concept of customer relationship management relates to the banking industry's proclivity to establish and maintain long-term relationships with customers in order to provide value to both the consumer and financial institution. These approaches help banks to better understand and engage with their customers on an individual level, which allows for better customer segmentation and communication as well as the establishment of long-term relationships. Banks are attempting to identify customers and personalize their offers to meet their unique needs as part of their attempts to maximize profits in today's economic context. Customer Relationship Management is evolving as a result of modern technology into a method for sustaining present structures while also building a loyal customer base of high-quality customers. In order to develop a marketing strategy, it is necessary to gain a more comprehensive understanding of the entire customer base. This includes understanding customer demands and attitudes, as well as conducting a more efficient analysis of the profitability and added value that each client provides to the financial institution. With this paper's findings, we hope to determine whether or not introducing the Customer Relationship Management concept into the banking sector will be beneficial. This will be accomplished through the development of strategies, the modification of organizational structure and culture, the implementation of internal processes, and the application of modern technology. In this article, it is explained how to evaluate the performance of the Customer Relationship Management concept, as well as the challenges that banks face while implementing a new business strategy.
Keywords: CRM concept, CRM strategy, processes, information technology, communication channels.