IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON ISLAMIC BANKS AND TAKAFUL COMPANIES

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Zahra Azam

Abstract

In today’s business environment, which is dominated by the social customer ecosystem, Customer Relationship Management (CRM) is critical for maintaining successful customer relations and sustainable growth of businesses. Although Islamic Financial institutions (IFIs) of Pakistan do recognize the importance of CRM and work on implementing its principles, they struggle to take the lead over conventional financial institutions with regards to overall market share. Therefore, this paper is an investigative study that pinpoints CRM factors which hinder local IFIs in dominating the current financial industry of Pakistan. The paper attempts to study the extent of CRM application on ground-level in various Islamic banks and Takaful companies, especially during COVID-19 times in the year 2020, when it is essential to sustain strong customer relations. Research findings indicate that although CRM implementation is heavily stressed in IFIs, the required strategic results are not achieved. This qualitative study conducts its research through a questionnaire and short surveys that were distributed out to both employees and customers. About 40 candidates volunteered in the questionnaire, which was formulated using the CRM Value chain model and the author’s own proposed framework. The success stories of some of the IFIs have also been studied to propose solutions and recommendations which would assist fellow IFIs in implementing CRM strategies that are more goal congruent with the organization’s strategic goals.


KEYWORDS: Customer Relationship Management (CRM), Islamic Financial Institutions (IFIs).

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