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Effects of the Application of the CRM Concept to Profitability of the Banks

Author

Listed:
  • Stevanović Suzana

    (Faculty of Business Economics Bijeljina, University of Istočno Sarajevo, Bosnia and Herzegovina)

  • Gavrilović Zvjezdana

    (Faculty of Business Economics Bijeljina, University of Istočno Sarajevo, Bosnia and Herzegovina)

Abstract

CRM (Consumer Relationship Management) is a recent concept. Development and introduction of this concept in the banking operations started in the ‘90s. Due to complex market conditions and the current environment in which banks operate, it is necessary to have a new method for doing business, which will provide quick and efficient recognition of clients. This business concept entirely replaces the traditional operating methods of the bank, where the focus is on clients, their needs, and wishes. The CRM concept enables the bank to respond to the individualized demands of the clients with quality banking products and services. With this, the banks manage to deal with the tough competition and make a profit. The goal of this paper is to examine the importance, development, and implementation of the CRM in the banks. The paper tries to prove the hypothesis: Introduction of the CRM philosophy in the banking operations leads to increased profitability of the bank.

Suggested Citation

  • Stevanović Suzana & Gavrilović Zvjezdana, 2018. "Effects of the Application of the CRM Concept to Profitability of the Banks," Economic Themes, Sciendo, vol. 56(3), pages 283-299, September.
    • Handle: RePEc:vrs:ecothe:v:56:y:2018:i:3:p:283-299:n:1
    DOI: 10.2478/ethemes-2018-0017
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    More about this item

    Keywords

    CRM concept; profitability; banking sector;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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