Abstract:

Customer Relationship Management (CRM) came into the power when banking institutions were getting more and more competitive. The focus of CRM helped banks to understand the customers’ current needs, what they have done in the past, and what they plan to do in the future to meet their own goals (Xu, et al., 2002). Even though most of the banks in the developing countries such as: Pakistan, India etc. have realised the importance of CRM and implemented its applications, but the initial investigations of the current research have shown that quite a number of CRM goals does not produce required results and even worse, in some cases users say that CRM has damaged customer relationships. Therefore, this paper is based on highlighting the problems and challenges in the banking sector of Pakistan using the customer relationship management (CRM). The paper also outlines some precise definitions of customer, CRM System in context with the banking industry in Pakistan, and work done by several researchers in this area. Some major problems in Pakistan’s banking industry using the CRM system are also discussed. Then, from two available research approaches (i.e., quantitative and qualitative), qualitative approach is chosen and its case study technique is selected since its techniques seem relevant to the nature of current research. A short description of some data collection techniques which are used for current research is also presented. At the last part of the paper, some of the major questions used for qualitative interviews from different banking customers and employees in Pakistan are presented and the major CRM problems based on these interviews are discussed.