Solutions Research And Status Analysis On CRM System’s Application Of China Construction Bank

With the rapid development of domestic banking industry in recent ten years, competition among commercial banks has been heating up. The competitive priority has been shifted eventually from market share to customer share with a particular focus on customer resources of high quality. To gain competitive advantages, commercial banks have put customer share at the core of their strategic resources. Besides, middle and high-end customers are recognized as their priority targets. In support of the strategic shift, Customer Relationship Management (CRM) model has been adopted in commercial banks, allowing their customer relationship maintenance to be built on customer-oriented strategies instead of product-oriented strategies. In order to attract and retain more high-end customers, as well as build access to more middle-end customers, commercial banks start focusing on customer relationship maintenance supported by differentiated and personalized products and services. While commercial banks establish differentiation strategy through the CRM system, differentiated pricing and services are tailored for high quality customers at different levels, which also differentiate the banks themselves from competitors in terms of market positioning and approaches. Given a consideration of Chinese commercial banks’ increasing needs in customer resources and competitive business strategies, this paper takes China Construction Bank (CCB) as an example, aiming at demonstrating the importance of developing and applying CRM system for commercial banking.As a core member of the project team, the author has participated in setting up CCB’s CRM system, acquiring a deep understanding of how the CRM works for CCB. Taking CCB as a case study, this paper analyzes the current status and existing problems of CRM systems’application in commercial banks. And this paper also introduces CRM theory, discusses the differences of CRM applications in domestic and overseas markets, and elaborates on the details of the CCB CRM case. Additionally, based on the theory of business process modeling, the author proposes solutions to business process restructuring, which extends the theoretical results to the practical work of commercial banks.This paper consists of five chapters:●The first chapter is the introduction, which provides an overview of this research’s background, implications and methodologies.●The second chapter elaborates on theoretical basis of this research, the definition of CRM, CRM’s theoretical foundation, basic functions, and its role in banking.●The third chapter compares CRM application status in domestic commercial banks with that of overseas players, analyzing differences. And this chapter also gives a detailed introduction of successful experiences in adopting CRM system of foreign commercial banks.●The fourth chapter states the development status of CRM in China’s commercial banks. Taking CCB VIP service problem as an example, this chapter introduces CRM implementation status and case studies in CCB.●The fifth chapter analyzes the existing problems of CRM’s application and implementation in China’s commercial banks. While zooming in the challenges which CCB faces, this chapter makes proposals for commercial banks to improve CRM system based on a Business Process Modeling approach.Based on the CRM knowledge and marketing theory acquired in MBA program, this paper puts the theory into practice and conducts an in-depth analysis. According to analysis on CCB case, this paper aims to find feasible solutions to the existing problems.There are also challenges. Even though CRM has been eventually adopted and developed in China, gap between theoretical knowledge and practices exists while some CRM essence and expertise have been misinterpreted or misperceived in China due to the limitation of China’s conditions. Although the author has been working on CRM project in CCB for eight years, his understanding about CRM might be biased due to misinterpretation or individual experience. Only through a more in-depth research on the CRM theory, and more learning through solid practice, the accurate understanding can be achieved to support CRM theoretical study and applications.