Banks in Serbia Need to Improve Their Customer Relationship Management

Serbia, as well as all other transition economies, are faced with numerous problems: high trade deficit, too public spending, institutional framework that makes it difficult further privatization of social and state sector, insufficient foreign direct investment inflow, low companies` competitiveness as well as many other problems. Each of these problems requires a thorough analysis and a whole range of measures for a successful resolution. However, in this paper the intention is to focus on banks in Serbia, as very important factors of economic growth and development, and to point out the way in which they can improve their business performance and competitiveness. On the Serbian market, there are thirty-four banks, bearing in mind the number of inhabitants in the country and the development of the economy, it can be concluded that competition between banks is extremely sharp, and only banks which are able to attract and retain the most profitable customers will survive in the future. Therefore, the aim of this paper is to point out the Customer Relationship Management-CRM, as a strategy that banks may use in order to increase competitiveness and create long-term relationships with their the most profitable clients. Also in the paper are presented results of research conducted on a sample of banks in Serbia. Findings get insight into to the extent that banks in Serbia are familiar with the Customer Relationship Management, and the level of implementation Customer Relationship Management processes in their business. On the basis of professional literature, positive experiences of foreign companies that successfully implement CRM, as well as the results of the research conducted in the banks in Serbia, it can be concluded what are the basic weaknesses in CRM in the banks in Serbia, what they can do to overcome the problems, and which benefits they can achieve.