The traditional current account for companies is not at all remunerative and most services on these accounts are free of charge. This poses the questions of sustainability and hence the banks have to compromise on services. Today the customer is willing to pay for the services, provided he receives the services. Services in banks have been automated as can be seen by the services offered by National Bank of Bahrain (NBB). They have incorporated IT to improve the services and enhance the customer experience. Internet banking has allowed the to redefine their relationships with their customers and redesign their services.
The expectations of customers have been high because promises were made. When the promises are not fulfilled, they react. Customer delight can be obtained by delivering more than the expectations. Hence, before making any promises, the system must be in order. Relationship banking is a lending decision-making technology widely used for making financing decisions for small, young and high-risk firms (Boot, 2000; Binks and Ennew, 1997 cited by Ashton and Pressey, 2004). A ‘ relationship manager’ is designated the to keep a constant and close association with the customers and apprise them of the financial products, facilities that the bank grants.
This benefits the bank in decision-making, in profitability and in assessing the requirements of the customers. National Bank of Bahrain (NBB) is one of the two companies that are implementing CRM in Bahrain (Al-Alawi, 2004). A survey revealed that the participants had only some theoretical knowledge of CRM with no physical implementation in their work processes. While they did show high regards for customers and customer services, notable response was, “ depends on customer choices” .
This demonstrates the NBB exists for the purpose of serving the customers and when the customers demand more focused attention, CRM could be successfully implemented. A few cited costs and lack of appropriate technology as reasons for not implementing the CRM at NBB. Some also felt that since the customers were satisfied, they did not find it necessary to bring changes or implement CRM.
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