ABSTRACT
This study analyses the effect of customer relationship management on
organizational performance. This research views customer relationship
management as an enterprise approach to developing full-knowledge about
customer behavior and relationship marketing
To achieve the purpose of this research work the survey method using the
questionnaire instrument was adopted. Data were collected from primary and
secondary source. The instrument were administered to 93 respondents drawn as
the sample for the study. The output from those sources were analyzed by the
use of chi-square analysis.
The result shows effective customer relationship management have
significant relationship with organization performance .And that customer
relationship management as strategy that helps companies to refine interactions
and ultimately improve a company's relationship with customers that will enable
a mutually profitable relationship between buyer and seller.
It's therefore relevant that customer relationship management should be focal
point of organization in order to gain superior customer relationship
management capability that will lead to improved performance.
TABLE OF CONTENTS
Front Page i
Certification ii
Dedication iii
Acknowledgment iv
Abstract v
Table of Content vi
Chapter One: Introduction
1.1 Background
of the Study 1
1.2 Statement
of the Problems 5
1.3 Objectives
of the Study 6
1.4 Research
Questions 6
1.5 Statement
of Hypotheses 7
1.6 Significance
of the Study 7
1.7 The
Scope and Delimitation of the Study 7
1.8 Plan
of the Study 8
Chapter Two: Literature Review
2.1 Introduction 9
2.2 Concept
of Customer Relationship Management 11
2.2.1 Goals
of Customer Relationship Management 17
2.2.2 Customer
Relationship Management Process 19
2.2.3 Customer Relationship Management Process Theory and Relationship between
the Elements 20
2.3 Concept
of Marketing 26
2.4 Customer
Retention 31
2.4.1 Customer
Satisfaction 34
2.4.2 Customer
Perceived Value 35
2.5 Customer
Value and Satisfaction 36
2.5.1 Conceptual Differences between Satisfaction and Customer Perceived
Value 38
2.6 Conceptual
Differences between Satisfaction and
Value 38
2.7 Summary 39
Chapter Three: Research Methodology
3.1 Introduction
41
3.2 Research
Design 41
3.3 Data
Collection 42
3.4 Sample
Size 44
3.5 Questionnaire
Administration 46
3.6 Questionnaire
Design 46
3.7 Questionnaire
Assumption 47
3.8 Reliability
and Validity of Data Reliability 47
Chapter Four: Data Analysis and Discussion of
Findings
4.1 Introduction
51
4.2 Analysis
of Personal Data 51
4.3 Analysis
of Variables 54
4.4 Testing
of Hypotheses and Discussion of
Finding 66
Chapter Five: Summary, Conclusion and Recommendation
5.1 Summary
70
5.2 Conclusion
72
5.3 Recommendation
74
References 76
Appendix
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Customer relationship management has attracted the expanded attention of
practitioners and scholars. More and more companies are adopting
customer-centric strategies, programs, tools, and technology for efficient and
effective customer relationship management. They are realizing the need for
in-depth and integrated customer knowledge in order to build close cooperative
and partnering relationships with their customers. The emergence of new
channels and technologies is significantly altering how companies interface
with their customers, a development bringing about a greater degree of
integration between marketing, sales, and customer service functions in
organizations. For practitioners, customer relationship management represents
an enterprise approach to developing full-knowledge about customer behavior and
relationship marketing, these are not distinguished from each other in the marketing literature (Parvatiyar & Sheth, 2000).
The ability to identify profitable customers and then customize marketing
on the basis of customer value has enabled many banks to punch above their
weight in today's competitive environment. Banks have chosen to compete through
superior customer relating capabilities based largely on the customer relationship
management programs deployed. It will come as no surprise that vendors are quick to point out that by allocating resources to customer relationship management
technologies, all firms in the financial services sector can generate new forms
of competitive advantage. Customer relationship management has attracted the
expanded attention of practitioners and scholars. More and more companies are adopting
customer-centric strategies, programs, tools, and technology for efficient and
effective customer relationship management. They are realizing the need for
in-depth and integrated customer knowledge in order to build close cooperative
and partnering relationships with their customers. Nevin (2005) points out that
these terms have been used to reflect a variety of themes and perspectives.
Some of these themes offer a narrow functional marketing' perspective 'while
others offer a perspective that is broad and somewhat pragmatic in approach and
orientation.
A narrow perspective of customer relationship management is database marketing; this emphasizes the promotional
aspects of marketing linked to database efforts.
Another narrow, yet relevant, viewpoint is to consider customer
relationship management only as seeking customer retention by using a variety
of after marketing tactics that lead to customer bonding or staying in touch
with the customer after a sale is made (Vavra, 1932). A more popular approach with
the recent application of information technology is to focus on individual or
one-to-one relationships with customers that integrate database knowledge with
a long-term customer retention growth strategy (Peppers
& Rogers,
1933).
Thus, Chatters & Buttle (2003) have defined relationship marketing as "an integrated effort
to identify, maintain, and build up a network with individual consumers and to
continuously strengthen the network for the mutual benefit of both sides,
through interactive, individualized and value added contacts over a long period
of time" . Jackson (1985) applies the individual account concept in
industrial markets to suggest customer relationship management to mean,
"Marketing oriented toward strong, lasting relationships with individual
accounts".
0’
Dounel (2000) has professed a more strategic view by
putting the customer first and shifting the role of marketing from manipulating
the customer (telling and selling) to genuine involvement with the customer
(Communicating and sharing knowledge). In somewhat broader terms, also has a
strategic viewpoint concerned with customer relationship management. He has
stressed that attracting new customers should be viewed only as an intermediate
step in the marketing process and that developing closer relationship with
these customers and turning them into loyal ones should be equally important
aspects of marketing. Thus, he proposed that relationship marketing be seen as
"attracting, maintaining, and - in multi-service organizations - enhancing
customer relationships"
Berry's notion of customer relationship management resembles that of other
scholars studying services marketing, Gummesson (1987), and Levitt (1983).
Although each one of them has espoused the value of interactions in marketing
and its consequent impact on customer relationships, Gronroos and Gummesson
(2004) take a broader perspective and advocate that relationships with
customers be the focus and dominant paradigm of marketing. For example,
Gronroos (2006) states: "Marketing is to establish, maintain, and enhance
relationships with customers and other partners, at a profit, so that the
objectives of the parties involved are met. This is achieved' by a' mutual
exchange and fulfillment of promises” (p. 138). The implication of
Gronroos'(2006) definition is that forming relationships with customers is the
"raison de etre" of the firm and marketing should be devoted to
building and enhancing such relationships.
Similarly, Chartes and Buttle (2003) draw' upon the distinction made
between transactional exchanges and relational exchanges by to'suggest that
relationship marketing "refers to all marketing activities directed toward
establishing, developing, and maintaining successful relationships."
The core theme of all Customer Relationship Management and relationship
marketing perspectives is its focus on a cooperative and collaborative
relationship between the firm and its customers, and / or other marketing
actor. This is characterized by cooperative relationships as being
interdependent and long-term orientated rather than being concerned with
short-term discrete transactions.
1.2 STATEMENT OF THE PROBLEMS
New market condition sharpens competition among rivalry companies. The
number of competitor raises while at the same time the services and products
available on the market differ less and less at their core. This has resulted
in decreasing· of customer retention and increasing costs to do business. For
most business customer relationship management is emerging' as an important
tool and an innovative way to add their products and services. Effective
customer relationship management has become a strategic imperative for
companies in virtually every business sector. Companies are moving closer to
their customers, expanding more effort in finding new ways to create value for
their customers and transforming the customer relationship into one of solution
finding and partnering rather than one of selling and order taking. In view of
the vital place occupied by customers in the realization of its objectives, the
following questions become pertinent.
i. Is
there any relationship between customer relationship management and its
effectiveness and efficiency?
ii. Is
effective customer relationship management any effect on its profitability?
iii. Does
customer relationship management any effect on rate of customer's relationship?
iv. Does customer value create an off short of customer relation management?
1.3 OBJECTIVES
OF THE STUDY
The aim of this study is to examine the effect of customer relationship
management on organization performance, while specific objectives are follows;
i. To
examine the effect of customer relationship management on organization
efficiency.
ii. To
examine whether implementation of customer relationship management promote profitability of the
organization
iii. To
identified whether customer relationship management contribute to customer
value creation in the organization
IV. To identified whether organization has Loyalty program to enhance the
Lifetime Value for your Customers
1.4 RESEARCH
QUESTIONS
For the purpose of this research work, the following questions will examine;
i. Is there any relationship between customer relationship management and
efficiency services delivery?
ii. Could
implementation of customer relationship management enhances profitability of
the organization?
iii. Could
customer relationship management contribute to customer value creation in the organization?
1.5 STATEMENT OF
HYPOTHESES
Ho1: There is
no significant relationship between customer relationship management and
efficiency services delivery.
Ho2: There is no significant relationship between of customer relationship
management and profitability
H03: There is no significant relationship between of customer relationship
management and value creation
1.6 SIGNlFICANCE OF THE STUDY
The study considers the customer relationship management. This study will
guide owners of businesses, managers, researchers and students in the area of
customer management. The study will provide basic understanding of the impact
of customer relationship management in Lagos and Nigeria in general. It will
also contribute knowledge as to how businesses in Nigeria could create and
refine their capacity to establish and implement an effective customer
relationship management.
1.7 THE SCOPE AND
DELIMITATION OF THE STUDY
The scope of this study shall be restricted to Access Bank PIc in Lagos
State. Due to limited time, the research will make used of interviews and
questionnaire method and this will be restricted to staff of Access Bank in
Lagos state.
1.8 PLAN OF
THE STUDY
This study is divided into five chapters, chapter one sets out the
background of the study (Introduction), statement of the problem, significant
and relevance of the study, objective of the study, research questions and
research hypothesis, scope and limitation of the study' and' plan of the study.
Chapter two deals with literature review and theoretical foundation which
includes concepts and definitions. Chapter three undertakes research
methodology. Chapter four looks into data presentation and crucial analysis of
data collected and analysis of results. While chapter contains summary,
conclusion and recommendation.
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