Customer Relationship Management
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is Customer Relationship Management (CRM) in the context of banking?
CRM is a strategy that banks use to manage interactions with current and potential customers, aiming to improve customer satisfaction, retention, and profitability through data-driven insights and personalised service.
What is the concept of 'customer retention' in retail banking CRM?
Keeping existing customers by meeting their financial needs consistently.
Which RBI guideline emphasises the importance of customer service and relationship management in Indian banks?
RBI's guidelines on 'Customer Service in Banks' (based on Goiporia Committee and Tarapore Committee recommendations) emphasise fair treatment, transparency, and grievance redressal as pillars of customer relationship management.
What is a CRM funnel in the context of bank customer acquisition?
A model tracking prospects from awareness through conversion to loyal customers.
What is the primary objective of CRM in retail banking?
The primary objective is to acquire new customers, retain existing ones, and maximise the lifetime value of each customer by delivering personalised financial products and superior service experiences.
What is 'customer profitability analysis' in banking CRM?
Measuring revenue earned minus cost incurred per individual customer.
What does 'Customer Lifetime Value' (CLV) mean in CRM?
Customer Lifetime Value is the total net profit a bank expects to earn from a customer over the entire duration of their relationship, used to prioritise high-value customers for targeted marketing and retention efforts.
What is the RFM model used in bank CRM analytics?
A model scoring customers by Recency, Frequency, and Monetary value of transactions.
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