Customer Relationship Management in the Finance Sector - Coursework Example

A discussion will center on how CRM helps support the goals of the company to establish long-term personal relationships with the customer, which ensures customer loyalty and creates a unique competitive advantage for the company.  For the second aspect, the discussion will touch on the technological requisites for program design and implementation, the CRM systems in place for most financial institutions, and the need for continued monitoring and oversight by the project team long after the system has been commissioned and rendered operational.

A short survey of critical success factor (CSF) models will be presented, delineating the strategic and tactical CSFs.  An assessment of CRM profitability and a brief personal assessment of the implications of CRM to the finance industry concludes the study. Most of the time, finance firms and financial advisers operated under the impression that they simply need to be competent at their job, managing other people’s finances, in order to maintain their clients.  In fact, research has determined that competency alone has less to do with retaining one’s accounts, particularly during a slump (Kane, 2008).

  Rather, the secret lies in developing deep, lasting, and loyal relationships with the clients already on hand. Early in the 1990s, a theory that encompasses the combined functions of business strategy, marketing, and information systems had gained momentum among managers who were eager to apply the modern digital information capabilities into their management systems. This approach is termed Customer Relationship Management, and it has special challenges and implications in the management of financial institutions and systems.