Abstract
Contemporary financial service industry has become highly dynamic and turbulent, with many changes in form of new regulations, changed consumer behavior, increased usage of information and communication technology and intense competition (Lymperopoulos et al., 2013; Heinonen, 2014). Banks have to invest great efforts to create added value and one way to do that is to generate and support the development of long-term customer relationships that provide greater value than the value provided by the banking product itself. Building of any added value is hard to achieve nowadays since competitors’ activities, which are often very similar, erode added value of any business (Zineldin, 2005). Even though banking industry has faced significant changes in different business segments during the last two decades, such as: distribution changes (with greater usage of ATMs, PCs, Internet, mobile banking), reduction of transaction costs, increased speed of service substantially, managing of supplier-customer relationships is still one of the crucial issues in banking industry (Ndubisi, et al., 2007). Besides such changes on the providers’ side, important changes appeared also on the customers’ side. Customers have become more demanding, empowered to perform some activities that were previously handled solely by banks, more knowledgeable, sophisticated, aware of available alternatives, independent, in a position to negotiate with many different service providers and similar (Heinonen, 2014). Under the influence of such changes in customer behavior and their needs, and with the goal to gain and maintain market competitiveness, banks invest a lot of financial, technological and human resources in customer relationship management (CRM) (Jugovic, et al., 2015). Relationships must be such that both banking service providers and customers benefit from it on a long turm (Dimitriadis, 2011). As a result of such relationships, productivity and quality of banking services is rising based on the progress of relationship between banks and customers (Brige, 2006). Today, with the wide usage of electronic communication technologies, customer relationship management has undergone significant changes and it reppresents a system which includes all aspects of communication and interaction with customers and, in other words, it determines how to work with customers, solve their problems, persuade them to purchase banking products and services, generate a feeling of loyalty and maintain financial interactions with customers (Rezghi, et al., 2014).