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Abstract

Driven through the challenges of competition, rising customer expectation and shrinking margins of retaining the customer, banks have been using technology as a weapon to deal with all these challenges. Despite the competitive environment, there has been deregulation and modernization of banking business including change in the rate of interest, a technology-intensive delivery channel like Internet Banking, Tele Banking, Mobile Banking and Automated Teller Machines (ATMs), etc have created a multiple-choice to the user of the bank. The banking business is becoming more and more complex with the changes arising from the liberalization and globalization. For the new bank, customer creation and retention are very important, established bank retention is an efficient and cost-effective mechanism. Customer retention management is a well-known business strategy to identify the bank’s most profitable customers and dedicates the time and attention to expand and generate new account relationships with Banking, India has gone through a rapid change followed by a series of fundamental developments in the relationship management in the banking sector. This paper is based on the empirical study that intends to explore the customer retention management in the commercial banks and how far it has such benefit to the banks in building better customer relationship management (CRM).And also to identify the major strategies that are used to retain the customer, along with the understanding the employee perceptions towards the customer retention by analyzing the major challenges faced by the banks for the retention of customers.

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How to Cite
S.M, D. M., & Honnali, M. P. (2019). Customer Retention Management in Banking Sector: An Empirical Study. Restaurant Business, 118(12), 294-303. Retrieved from https://journals.eduindex.org/index.php/rb/article/view/13475