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Abstract
In the present era banking scenario, there is fierce competition amongst banks for increasing customer base. To cope with this situation, banks are bringing new instruments, products and exploring fresh avenues for business growth. Keeping in view, the market perception and needs of the customers, banks are coming up with new products and services. In other words, the customersare the focus now and strategies are being formulated to acquire, develop and retain the customers. The customers want that their banks should help them, treat them in a personal and caring way. The focus is therefore, shifting from customer acquisition to customer retention. CRM is purely a good business sense and it is also a means of survival. Because of limited possibilities of product differentiation, the banks have started realizing to satisfy and retain their existing customers as a critical factor for their profitability and their survival. There is a dramatic effect of the improved customer retention on business profitability, where technology plays an important role. The developments in the IT industry are being utilized to know the customer needs and subsequently to design and develop the services accordingly. CRM allows banks to gather and access information about customer’s buying histories, preferences, complaints and other data, so they can better anticipate the customer wants. The goal is to instill customer loyalty.