Customer Relationship Management (CRM) and Cross-Selling in Retail Banking

Abstract

This study investigates the relationship between Customer Relationship Management (CRM) implementation and cross-selling performance in Pakistan’s retail banking sector. Drawing on Relationship Marketing Theory and the Resource-Based View, a quantitative research design was adopted involving 210 Retail Bank Employees across major cities. Data were collected through a structured questionnaire comprising Likert-scale items measuring CRM practices and perceived cross-sell outcomes. Descriptive statistics, reliability analysis, Pearson correlation, and linear regression were employed using SPSS. Results indicate a statistically significant and moderately strong positive relationship between CRM effectiveness and cross-selling success  (r = 0.658, p < 0.001; β = 0.598, R² = 0.433). The findings support the notion that CRM systems when effectively deployed enable banks to personalize offerings, enhance customer insights, and improve sales outcomes. However, the modest variance explained highlights the need for complementary factors such as employee training, integrated digital infrastructure, and customer trust. The study contributes to CRM literature in emerging markets and offers actionable recommendations for banking practitioners aiming to optimize CRM-Driven Cross-Sell strategies.