PROFITABITITY OF THE SMALL AND MEDIUM SIZED ENTERPRISES SEGMENT AS A FUNCTION OF CUSTOMER RELATIONS MANAGEMENT (CRM)
One of the most significant problems of Polish banking sector at the beginning of the 21st century is implementation of Customer Relationship Management (CRM) systems in the segment of small and medium-sized enterprises (SME) based on current profitability of customers. The main thesis of the publication is that such systems ignore both: up to date experience in collaboration with customers and potential profitability that could be developed in the whole lifecycle of customers' firms. To illustrate how this concept works in Polish conditions, two opposite behavioural models of SME bank financing were constructed. The first concept is based on current profitability criterion in CRM operation. Based on Polish examples it can be admitted that this model creates unfavourable tensions both on clients and on the bank management and significantly reduces benefits that would be available when more flexible approach could be adopted. Opposite to this model is a concept of CRM systems based on customer's firms lifecycle relations. This concept is analysed using Polish examples of co-operative banks, credit unions and very few commercial banks that had just implemented elements of this approach. The main conclusion of the article is that SME's customers prefer lifecycle approach to CRM systems and this system seems to be much more effective than current profitability approach.
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