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International Review of Business Research PapersVol. 5 No. 6 November 2009, Pp.117-132

Customer Relationship Management: Strategies AndPractices In Selected Banks Of Pakistan

Iftikhar Hussain , Mazhar Hussain, Shahid Hussain and M. A. Sajid

Field of Research: Relationship Management

1. Introduction

Over the last 5 years, Pakistan witnessed a phenomenal growth of consumerbanking. This unprecedented development has followed privatization ofnationalized banks, banking reforms brought about by the State Bank of Pakistanand an increasingly marketing-oriented approach primarily aimed by banks at alarge urban consumer base. Hot on the heels were the newly privatized banks,UBL, HBL and MCB which have embarked in consumer financing activities in not

just big cities but smaller ones too, by virtue of their huge branch network. In doingso, they have generated huge volumes of business while at the same time drivingdown the prices of the products they offer. But only generating huge volume of

The first author is a PhD student at School of Management Shanghai University China, e-mail:[email protected], second author is also a PhD student at Muhammad Ali Jinnah UniversityIslamabad Pakistan, while third & fourth authors are Assistant Professor and Professor & Dean atFaculty of Administrative Sciences Kotli, University of Azad Jammu & Kashmir Pakistan

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business is not so important, the critical thing is to maintain this huge volumethrough customer satisfaction and increase profitability of the business. This needsa strategy which can help banks in maintaining long term valuable relations withtheir customers and offer them life time value like CRM.

Banking historically operated in a relatively stable environment for decades.However, today, the industry is facing a forceful competition and banks have lost asubstantial proportion of their domestic business to essentially non-bankcompetition. Fighting competition is vital for the profitability and ultimate survival ofbanks. Zineldin( 2005 ). CRM is a growing trend in banks today and banks arespending a lot on CRM. According to Raffaella Molignani, research analyst for theEuropean IT Opportunity Financial Services research program, CRM is still at thetop of banking priorities. IDC . ( 2002 ) . CRM is a sound business strategy toidentify the banks most profitable customers and prospects, and devotes time andattention to expanding account relationships with those customers throughindividualized marketing, repricing, discretionary decision making, and customizedservice-all delivered through the various sales channels that the bank uses.

In literature, many definitions were given to describe CRM. The main differenceamong these definitions is technological and relationship aspects of CRM. Someauthors from marketing background emphasize technological side of CRM whilethe others considers IT perspective of CRM. From marketing aspect, CRM isdefined by [Couldwell 1998] as .. a combination of business process andtechnology that seeks to understand a companys customers from the perspectiveof who they are, what they do, and what they are like. Technological definition ofCRM was given as the market place of the future is undergoing a technology-driven metamorphosis [Peppers and Rogers 1995]. Consequently, IT andmarketing departments must work closely to implement CRM efficiently. It is saidthat CRM is not a product or service; it is an overall business strategy that enablescompanies to effectively manage relationships with their customers. It provides anintegrated view of a companys customers to everyone in the organization. Withthe intensified competition, companies realized that they have to treat theircustomers with respect. Customers have a lot more choices and they do not haveto be loyal to any company. Companies are now trying to figure out ways tomanage customer relationships effectively, not only to acquire new customers butalso to retain their existing customers. Customer Relationship Management (CRM)is key to creating a superior customer experience. It manages the customerrelationship by creating a clear understanding of the market (Know), by developingservices and products based on the added value for target groups (Target), thenenabling the actual sale and delivery of services and products via a port-folio ofchannels (Sell) and finally developing long-term profitable relationships with after-sales services (Service). Implementing CRM in phases helps to leverageknowledge and skills throughout the process. CRM Survey Results, (2001)

Nowadays, Banks have realized that customer relationships are a very importantfactor for their success. Customer relationship management (CRM) is a strategy

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that can help them to build long-lasting relationships with their customers andincrease their revenues and profits. CRM in the banking sector is of greaterimportance. The aim of this study is to explore and analyze the strategicimplementation of CRM in selected banks of Pakistan, identify the benefits, as wellas the success and failure factors of the implementation and develop a betterunderstanding of CRM impact on banking competitiveness as well as provide agreater understanding of what constitutes good CRM practices. In this study,CMAT (Customer Management Assessment Tool) model is used whichencompasses all the essential elements of practical customer relationshipmanagement. The evidence supports that CRM is gradually being practiced instudied banks; however the true spirit of CRM is still needed to be on the activeagenda of the banking sector in Pakistan. This study contributes to the financialservices literature as it is one of the very few that have examined CRMapplications, a comparatively new technology, in the Pakistani banking sector,where very limited research has taken place on the implementation of CRM.

2. Literature Review

Bose, (2002) described the customer relationship management (CRM), essentialand vital function of customer oriented marketing is to gather and accumulaterelated information about customers in order to provide effective services. CRMinvolves attainment analysis and use of customers knowledge in order to sellgoods and services. Reasons for CRM coming to existence are the changes anddevelopments in marketing environment and technology. Massey et al., (2001)believes that CRM is about attracting, developing, maintaining and retainingprofitable customers over a period of time.Academics and practitioners are taking keen interest in professional adoptability ofCRM since 1990s (Payne and Pennie 2005). It has been defined in many wayssince the introduction of the concept. However, the best definition of CRM isdeveloped by Payne and Frow (2005) by stating that CRM is a strategic approachthat is concerned with creating improved shareholder value through thedevelopment of appropriate relationships with key customers and customersegments. CRM unites the potential of relationship marketing strategies and IT tocreate profitable, long-term relationships with customers and other keystakeholders. CRM provides enhanced opportunities to use data and informationto both understand customers and create value. This requires a cross-functionalintegration of processes, people, operations, and marketing capabilities that isenabled through information, technology, and applications (Boulding et al 2005).CRM serves the purpose of value creation for all stake holders: customers,employees and shareholders (Payne, Holt and Frow 2001). The service profitchain (SPC) Model (Heskett et al 1994) shown in Figure 1 helps illuminate thisvalue creation process by representing horizontal, cross-functional value creationprocesses rather than isolated perspectives with in each function.

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Levitt (1960) gave the idea that for firms to stay in existence, they should not focuson selling products but rather on fulfilling needs. Again Levitt (1969) introduced theconcept of the augmented product, stressing that consumers are interested in thetotal buying experience, not just the core product. Bagozzi (1974) refocusedpeoples attention on the actual exchange process by reiterating the fundamentaleconomic concept that an exchange occurs only when both parties perceive thatthey are receiving value. Almost ten years later, Berry (1983) shifted the emphasisto the relationship between the company and the customer. On the basis of hisideas and related conceptual work the concept of building relationships wasexpanded to several different domains, such as industrial buyersellerrelationships (Dwyer, Schurr, and Oh 1987) and channels of distribution (Gaski1984). Concurrently concepts such as market orientation (Kohli and Jaworski1990; Narver and Slater 1990), market focus (Day 1994), and market-basedlearning (Vorhies and Hunt 2005) were developed to understand the needs andwants of customers, thus making firms more efficient and effective in managingcustomer relationships. In addition, there was an evolution from product, or brand,management to customer management (Sheth 2005) and from product portfoliomanagement to customer portfolio management (Johnson and Selnes 2004).There was an explosion of customer data in the 1980s. To organize these data foranalytic purposes Peppers and Rogers (1993) introduced the concept of one-to-one marketing, and Pine (1993) introduced the concept of mass customization.Vendors capitalized on these ideas with hardware and software solutions andbegan using the term CRM.

Organizations are realizing the importance of the vital role played by relationshipsin achieving and maintaining the cutting edge at the market place. It is thecustomer which gives an opportunity to the organization to serve him (Payne and

FIGURE 1: The Service Profit

Senior supervision leadership facilitation

Internalservicequality

Employeesatisfaction

Employeeretention

Employeeproductivity

Employeevalue

creation

Externalservicevalue

Customervalue

creation

Customersatisfaction

Customerloyalty

Revenuerowth

Profitability

Shareholder

valuecreation

Source: Adapted from Bentum and Stone 2005

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Frow 2005). Every organization sets its policies and strategies to managerelationship with its customers to survive in the competitive environment. Thisstudy explores strategies and practices of CRM in selected banks of Pakistan andsuggests some areas of improvement. The objectives of this study were to explainthe concept of CRM along with its evolution in international scenario and analyzingthe strategic implementation of CRM in selected banks of Pakistan

2.1 Benefits of CRM

Customer relationships are becoming even more important for banks as marketconditions get harder. Competition is increasing, margins are eroding, customersare becoming more demanding and the life-cycles of products and services are

shortening dramatically. All these forces make it necessary for banks to intensifythe relationship with their customers and offer them the services they need via thechannels they prefer. CRM helps banks to provide lot of benefits to theircustomers; some key benefits are as follow.

Service provisioning throughout the entire life cycle of the corporatecustomer, from the initial stages to the establishment of a close, long-termrelationship with profitable clients,Optimization of the use of bank resources, such as alternative channels ofdistribution (internet and home banking),Significant reduction in and limitation of operational costs through systemautomation and standardization,Low maintenance and expansion costs owing to the use of modernadministration tools which allow bank employees to make a wide range ofmodifications to the system.CRM permits businesses to leverage information from their databases toachieve customer retention and to cross-sell new products and services toexisting customers. Foss , B . and Stone , M . ( 2001 )Companies that implement CRM make better relationships with theircustomers, achieve loyal customers and a substantial payback, increasedrevenue and reduced cost. Roh et al.( 2005 )CRM when successfully deployed can have a dramatic effect on bottom-lineperformance. For example, Lowes Home Improvement Warehouse, in aspan of 18 months, achieved a 265 percent return on investment (ROI) onits $ 11m CRM investment. Stringfellow et al. ( 2004 )According to a study conducted in the sector of banking, convenience oflocation, price, recommendations from others and advertising are notimportant selection criteria for banks. From customers point of view,important criteria are: account and transaction accuracy and carefulness,efficiency in correcting mistakes and friendliness and helpfulness ofpersonnel. Thus, CRM, high-quality attributes of the product / service anddifferentiation proved to be the most important factors for customers.Zineldin , M . ( 2005 )Another study conducted in a European bank shows that with CRM, the

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bank was able to focus on profitable clients through efficient segmentationaccording to individual behaviour. Information about who buys what andhow much enabled the bank to have a commercial approach based on theclient and not solely on the product. Thus, the bank was able to bettersatisfy and retain its customers. Lindgreen and Antioco , ( 2005 )

Eventually, CRM results both in higher revenues and lower costs, makingcompanies more effective and efficient: effective in targeting the right customerbase with the right services via the right channels, and efficient in doing this at thelowest costs. For example, those banks that are moving transactions from themore expensive channels to a less costly channel like the call centre or Internet

are therefore able to save money.

2.2 CSFs of CRM Implementation

As banks attempt to re-orientate themselves around customers, individualemployees will have to come to terms with changing cultural norms, organizationalstructures and the way that their performance is measured and rewarded. Thecommitment of senior management is critical to success.CRM normally involves business process change and the introduction of newinformation technology, consequently, effective leadership is important (Galbreathand Rogers, 1999). Because leaders monitor the external environments of anorganization, they are often the best placed to set the vision or strategic directionfor CRM projects. In addition, leaders are influential in the authorization andcontrol of expenditure, the setting and monitoring of performance and theempowerment and motivation of key personnel (Pinto and Slevin, 1987).

According to Chen and Popovich, 2003; Plakoyiannaki and Tzokas, 2002, therelative success of CRM initiatives are strongly influenced by the interplaybetween three key organizational elements: people, process and technology.Additionally, integration of activities, such as cross-functional processes, is citedas the most critical success factor (Wilson et al., 2002; Kale, 2004, Meyer andKolbe, 2005). The coordination of customer relationship activities is necessary onvarious dimensions such as strategy, processes, and technology, to ensuresuccess.

CRM should be placed at the heart of the organization and a holistic approachshould be adopted because CRM reaches into many parts of the business. Othersuccess factors of CRM are: Process fit , that is, the CRM system must bedesigned around an elaborate understanding of a CRM process so as to leveragethe marketing and sales effort. Customer information quality, that is, makingeffective use of customer information resources. System support, because only ifthe system has been implemented and adopted successfully, a firm is able to reapits benefits.

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3. Research Methodology

This study is more descriptive in nature as CRM is a relatively new area of interestamong the banks in Pakistan; our interest is to describe this area of research. Bothqualitative and quantitative research approaches are used for this study to get abetter understanding of the research area. Based on our research question wehave specifically chosen three banks City Bank, HBL and MCB. Various researchmethods are used by researchers to conduct CRM research in the past. Ryals(2005) used case study approach. Some used a multi-firm (cross-sectional)database approach (Srinivasan and Moorman 2005, Mithas, Krishnan, and Fornell2005). Other used data collected within a single firm over time (Thomas andSullivan 2005). Payne and Frow (2005) used CRM Framework to conduct theirstudy. Shanmuganthan et al. (2003) used Customer Management AssessmentTool (CMAT) to assess the quality of customer management in financial services.We found it more balanced and rigorous approach to measure the quality ofcustomer management. In this study we followed Shanmuganthan et al. (2003),and used the conceptual framework shown in figure 2. The primary data wascollected through questionnaires from three major banks of Pakistan i.e. Citibank,HBL, and MCB. Two major banks (HBL and MCB) were selected because theyhad wide network of branches in the country i.e. over 1400 branches of HBL andover 900 branches of MCB. MCB is also the first bank of Pakistan. Citibankrepresents international banks working in Pakistan. It is a bank with branches in allmajor cities of Pakistan and has a large clientele. Furthermore, these three bankshave proven business success, also are very famous banks of Pakistan and areworking in the capacity to represent the banking sector of Pakistan. Selectioncriteria were:

banks having nationwide representation banks having different target customer; individuals, and groups banks having national and/or international representation banks with proven business success

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Table 1: Scoring criteria to fill the questionnaires

Source: Adapted form Shanmuganthan et al. (2003)

The basic knowledge of customer relationship management in these banks wasaugmented by interviewing different people responsible for relationshipmanagement in these banks. Questionnaire was the main instrument for data

No real progress: Nothing / very little happening, possibly isolated smallinitiatives

0

Isolated activity: Something happening, not systematic, not broadlydeployed

15

Some commitment and some progress: concept understood, plan toimplement, resource allocated

30

Full commitment and real progress: plans exist, resources allocated,implementation begun

60

Clear evidence and being implemented: doing it, can be seen, noevidence of effect yet

80

Fully implemented and having an effect: bank is doing it, it can beseen, and proper evidence it is working

100

Source: Adapted form Shanmuganthan et al. (2003)

Targeting

Enquirymanagement

WelcomingGetting to

knowcustomers

Customer

developm

Managingproblems

Win back

Analysis

And

Planning

The

Proposition

Measuring

The

Effect

Com etition

The Customer ex erience

Process

Peo le and Or anization

Technology

FIGURE 2: The CMAT customer mana ement

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collection. The instrument aimed to explore the implementation of CRM in bankingsector. It is also formed to find out the relationship between CMAT model andbusiness performance. There were eight questions in the questionnaire and eachquestion has six possible answers (see table 1). The validity of the questionnairehad been proved through interviewing a number of respondents to assure that:

The instrument and its questions were plausible (logical flow, easy tounderstand, etc.)

There were no major problems with the length of the questionnaire and thetime required to complete it.

Interviews were conducted with senior management responsible for marketingand/or relationship management using a questionnaire of eight targeted questions.The questionnaires were self administered from 318 employees in three banks(HBL, MCB, and Citibank). And 205 questionnaires were got filled (65%). Todetermine extend to which the items in the questionnaires were related to eachother and allow meaningful conclusions, data were analyzed using SPSS..4. Results and Discussions

The results of the study are arranged in the firm of a comparative analysis modeland are indicated in table 2. The results are shown in horizontal and vertical form.The horizontal scores demonstrate score for a variable for each bank as well asoverall average score of the variable. The vertical results demonstrate the overallscores for each bank of all variables. the results for Analyzing and Planningindicate Citibank has mean score of 30%; HBL has mean score of 25.3% whilemean score of MCB is 22.8%. If we see the overall average score of analyzingand planning for these three banks, it is 26% - a very low score. Banks need toimprove their analysis and planning strategies and practices. It is also veryinteresting that analyzing and planning is the weakest variables in all the banks.No bank is strong in this very important variable.The proposition represents the causes or reasons of any movement in theindustry. In any type of movement either upward or downward one can ask why itis so. For example, why customers should buy? After analyses and planning thewhole situation, it becomes easy to give logic of any outcome. When we look atthe score of these three banks in the above table, we see that Citibank has thehighest mean score of 48.3%. On the second number stands HBL whose score is36.8% and on the last number comes MCB whose mean score is 30.2%. Thisshows that Citibank is working more logically and is based on reasoning. Theybetter understand the importance of cause and effect. It is the reason why Citibankis a part of 17 largest banks of Pakistan, although it has a very small network ofonly eight branches. HBL and MCB are comparatively weaker than Citibank in theproposition. Although the average score of all banks is low but it is the secondhighest score of Citibank, third highest of HBL whereas sixth highest on MCB. Sowe can see say that banks do evaluate causes and respond accordingly. Theaverage mean score for three banks collectively is 38%; second highest score inour results.

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Concern for people and organization is another aspect of a CRM. If we lookresults, the average score for the variable people and organization is 35.6% (alower score at seventh number) of Citibank, for HBL it is 31.1% (a lower score atseventh number), and for MCB, this score is 29.9% (once again a lowest score atseventh number). It is very interesting to note that all these score are at the samebottom line number; seven. This low score unveils the fact that banks are notcaring for their employees. The average score of these three banks is 32% and itis also at seventh number in the row. Banks need to understand their employees,their needs and wants and fulfill their demands if they want to compete in an everincreasing competitive environment. As employees are the most critical source forsuccessful implementation of any innovation or management strategy.

Table 2: Comparative Analysis of CMAT ScoreSN Variables Citibank HBL MCB Overall

Avg. Score1 Analyzing and planning 30 (8) 25.3

(8)22.8

(8)26 (8)

2 The proposition 48.3 (2) 36.8(3)

30.2(6)

38 (2)

3 People and organization 35.6 (7) 31.1(7)

29.9(7)

32 (7)

4 Information and technology 40.3 (5) 39.1(1)

31.1(5)

37 (5)

5 Process management 40.6 (4) 33.9(5)

34.3(2)

36 (6)

6 Customer management activity 39.4 (6) 37.4(2)

36.7(1)

38 (2)

7 Measuring the effect 46.3 (3) 35.9(4)

32 (4) 38 (2)

8 Understanding the customerexperience

51.3 (1) 32.8(6)

32.9(3)

39 (1)

Overall Avg. Score 41.5 (1) 34 (2) 31.2(3)

Source: Developed by the authors

Information and technology has made it very easy for very large organizations tomanage their customers on personalized basis. With the help of technology theycan give personal touch a corner shop experience to their every customer everytime. Results in table 2 reveals that Citibank is once again leading the bankingindustry and its average score is 40.3% but this score is fifth highest in theCitibank comparative score card. Hence we conclude that Citibank is not sosuccessful in technological solutions. On the other hand HBL has got averagescore of 39.1%, the highest score in its comparative scores, describing that HBL isadopting technological solutions on priority bases. MCB is also not so successfulin technological solutions as its score 31.1% is at fifth position in comparativescore card. The mean score of all banks is 37% and it is also at fifth number in the

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comparative score card of average scores. The above results indicates that, banksin Pakistan are transferring from manual to technological solutions but still they arelacking behind in this regard.

Process management is another key variable in CMAT model. In the above tablewe see that Citibank is once again leading and its score is 40.6% (at fourthnumber among its own comparative scores). MCB has higher score than HBL witha mean score of 34.3% (and this score is second highest score in MCB). At lastnumber is HBL in process management with a mean score of 33.9% (a lowerscore in its comparative score at fifth number). The overall average score inprocess management is 36% at a lower number in the banking industry. Hencebanking sectors efforts regarding process management are not so worthwhile.They need to put more efforts in this regard to make their process more valuablefor their costumers and profitable for them.

Customer management activity is another important variable in CMAT model. Inthe results table Citibank is once again leading the industry with 39.4% - at sixthnumber. HBL is on the second position with an average score of 37.4% and this isa higher score of HBL at second number in its own comparative score card. Atthird number is MCB with an average mean score of 36.7%. The table shows thatit is the highest score of MCB. The overall average score is also a comparativelyhigh i.e. 38% which is second highest in the column. Hence, we can conclude(although Citibanks score doesnt match our statement but we state) thatcustomer management activity is a priority of banking sector of Pakistan.Measuring the effect is a very important variable to analyze and monitor theperformance of the organization. Citibank is leading in all respects in this variablewith the highest average score of 46.3% (third highest score in the Citibank scorecard). HBL has 35.9% mean score while MCB has mean sore 32%. Here boththese banks are at fourt number is their respective score. The overall age score ofthree banks is 38% another second highest score.

Understanding the customer experience is the last point in the CMAT model.Table 2 indicates that Citibank has got the highest score in understandingcustomer experience i.e. 51.3%. This score is highest as compare to all otherbanks and also in Citibanks score card. MCB is at second number inunderstanding customer experience with 32.9% mean score (its third highestscore). With a very slight difference, at last number is HBL with mean score of32.8% (its sixth top score in the rank). The overall mean score of these threebanks in understanding customer experience is 39% and it is the highest average.The results show that Citibank particularly is working on priority bases tounderstand its customers. MCB is also doing so while HBL is neglecting thisfactor yet. But the overall average score support to conclude that understandingcustomer experience is the priority of banking sector of Pakistan.

The study concludes that Citibank is leading the banking sector as for as CRMsunderstanding and application is concerned with highest average score of 41.5%

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among the studies banks, HBL is at second position with a score of 34% and MCBis at third position with a score of 31.2%. Citibank has emerged as a leading bank,followed by HBL and MCB in CRM understanding and application. Citibank is notonly leading in overall average scores but also in all individual variables score Citybank is the leading bank. This reflects that City bank is committed withunderstanding and application of CRM to meet the requirements of continuouslychanging and competitive financial market. HBL is doing better in informationtechnology and is followed by customer management activity, the proposition,measuring the effect, process management, understanding customer experience,people and organization, and analyzing and planning respectively, but theseefforts are still at immature stage. As they need to do much more than that for thetrue understanding and application of CRM in all their branches. A major cause ofhaving not so significant results for HBL is its large branch network. MCB has thehighest score in customer management activity and is followed by processmanagement, understanding customer experience, measuring the effect,information technology, the proposition, people and organization, and analyzingand planning respectively. But at the same time there is much space forimprovement in order to understand and implement CRM in its real sense to get allof its benefits.

5. Conclusion

Although all banks recognize the need for CRM, not every bank is implementingthe complete CRM concept. The way CRM has been implemented thus far seemsto depend heavily on the current balance between the discretionary and advisoryservices that the bank provides, in combination with its philosophy regarding thetype of contact that is perceived as best suited for their total client population. This,for example, varies between the provision of high-quality financial researchdocuments and the organization of all kinds of (non-financial) events.Customer Relationship Management is a useful business strategy. It is beneficialfor all stakeholders: customers, employees, and investors. It is being used by theorganization large or small. Due to privatization, deregulation, and globalizationcompetition has increased. This has led in the intensive use of CRM. Understudybanks of Pakistan have implemented CRM to some extent, but still are on theinitial stage. Citibank is more customer centric than the others. Banks need tounderstand the needs and demands of their target customers and then formulatetheir strategies and practices to serve them efficiently and effectively.Technological solutions are also compulsory but they must be user friendly. Tomake CRM a successful story banks have to take some critical steps:

Banks should recognize the diversity of experience and needs ofdifferent customers.Banks need to develop the propositions both relevant and practical, butnot too complex.Banks should get support from local media, newspapers andmagazines to build commitment and trust in the community and to

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reflect values and aspiration of local community in services andproducts.Banks should sponsor different social and cultural activities of theirstakeholders to build the mutual confidence and relationship.Customer education programmes should be launched to improveunderstanding of banks procedures and decision making and increasecomfort levels.Banks should hire professional people from the local community theyare trying to serve to improve understanding and performance, alsoincreased comfort levels and trust for customers. Attractive salaries andbefits can motivate employees to perform their duties well.Bank should focus on measuring current business volumes inbranch/geographic penetration, to help predict future value/growthpatterns; in branch marketing research, to ensure understanding ofcustomers satisfaction levels, service expectations, customer loyaltyetc. ; and tracking the success of advertising and PR and transferlearning into future campaigns.Measurement is a key to the understanding, learning and improvementcustomer experience. Banking sector management needs actively toarticulate the need for an improved and consistent customer experienceand branch mangers should localize this approach and coach their staffto deliver it.Banks should use customer friendly technology which their customercan use and brings value in their life.

On the whole, banks have a clear vision of their desired strategic position; theywant the ability to differentiate their brand and products through superior customerservice, and to drive effective sales through a customers entire portfolio. Theyalso clearly recognize the strategic role that CRM has to play, as reflected incurrent investment levels, as well as the increased importance ascribed to CRM inthe future. At the same time, banks know that the enterprise-wide adoption ofCRM will not be easy. While it is encouraging to see that internal politics to CRMtools are no longer seen as major stumbling blocks, there are explicit as well asimplicit indications that a great deal of progress must be made in order to achievethe internal process changes necessary to gain the maximum effect from CRMimplementations.

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