On the use of customer relationship management (CRM) in the banking industry : a qualitative cross-case analysis between the banks in Pakistan and the UK

摘要

Customer Relationship Management (CRM) came into the power when banking institutions started to become more and more competitive. The focus on CRM increased banks' abilities to understand their customers' current needs more precisely and also helped them to understand their customers' behaviours, such as what they have done in the past, and what they plan to do in the future. Such practice further helped banks to design strategies based on each customer's preferences in order to meet their customers' demands (Xu, et al., 2002). The adoption of the CRM within the banking industry chiefly depends on the overall adoption of IT culture within the country. Today, developed countries like the UK are enjoying innovative technologies, tailored-made systems, and have a high level of IT maturity within their banking industry. On the other hand, developing countries such as Pakistan are still dealing with several technological issues and the biggest one is the lack of IT alignment within most of their organizations especially within their banking industry (Kundi and Nawaz, 2006). Therefore, it is essential for researchers to further investigate the major IT-related problems faced by the banking industry, especially problems with the current use of the CRM system within the banking industry of developing countries i.e. Pakistan compared to banks in developed countries i.e. UK.This research has investigated and covered the overall operational issues of the CRM system within the banking industry of both developed and developing countries i.e. UK and Pakistan by using a qualitative case study research approach with two case studies, in which the Pakistani banking sector is selected as the developing country for case study one; for a developed country, the UK banking sector is selected as case study two. From the several existing UK and Pakistani banks, the researcher has selected some leading banks from the two countries and conducted several semi-structured interviews with different bank employees. Furthermore, the obtained interviews' results from both case studies are analyzed, compared, and discussed using an in-depth cross-case analysis approach and uncovered the similarities, differences, and several CRM operational issues within the banking sectors of both Pakistan and the UK.