ABSTRACT
This paper seeks to
determine the effect on customer relationship management has on performance of
an organization. The study is considered
crucial because the effective relationship of organizations and customers could
enable banks to improve their profitability thereby generating more returns and
increasing customer satisfaction using primary method of enquiry, the
researcher collected the data of five selected zonal offices of banks in Warri
and Asaba Delta state. The study adopts the longitudinal research design and a
combination of simple linear regression
model and systematic random sampling
technique. Therefore human resource
management, marketing, sales force automation and customer service were used as
proxies for customer relationship management while performance is measured by
customer satisfaction, market share, customer retention and innovation .
Findings of the study suggest that human resource management and sales force
automation are significantly associated with performance, while marketing and
customer service has no association with performance of an organization and which
form the basis for recommendation that banks and organizations need to improve
their customer relationship management as a pathway to achieve optimum performance.
Keywords:
Customer Attraction, Customer Relationship Management, Customer Retention, Customer
Satisfaction, Deposit Money Banks and Performance.
TABLE OF CONTENTS
1.0
INTRODUCTION
1.1 Background to the Study
1.2 Statement of the Problem
1.3 Objectives
of the Study
1.4 Research
Hypotheses
2. LITERATURE
REVIEW
2.1 The Concept of Customer Relationship
Management and it's Measurement
2.2 The Concept of Organizational performance and
it's Measurements
2.3 Customer Relationship Management and
Organizational Performance
2.4 Theorical Framework
2.5 Empirical
Review
3. DATA
AND METHODS
3.1 Model Specification
4. DATA PRESENTATION AND ANALYSIS
4.1
Descriptive Statistics
4.2
Testing Of The Hypotheses
4.2 Discussion of Findings
5.
CONCLUSION
References
CHAPTER ONE
INTRODUCTION
1.0
Background to the Study
Customer Relationship Management is a
sound business strategy to identify the bank’s most profitable customers
prospects, devotes time and attention in expanding accountable relationships
with those customers through individualized marketing, repricing, discretionary
decision making and customized
service-all delivered through the various sales channels that the bank uses.
Furthermore, the core and actual product being offered to business customers
could be considered reasonably homogenous.
Consequently, there is an increased need
for banks to differentiate themselves from competitors at the augmented product
level. One way that this might be achieved is to develop longer-term
relationships with their key customers (Westgard & Nielsen 2008). The
purpose of a business is to create customers. This statement is predicated on
importance of keeping those same customers and growing the depth of their
relationship with you. Initially, new customers cost you money, money spent on advertising, marketing and money
spent learning what they want and teaching them how best to do business with
you.
Customer relationship management (CRM) is
currently under active consideration by organizations across the globe parading
itself in the open market in the disguise of new technology and software
applications. Past market analyses concluded and predicted that the CRM
software market was set to grow by 700% over the years 2001 to 2004 and
generate total revenues of approximately $3 billion . According to Grogan (2018), research works from the
premise that the real purpose of business is to create and sustain mutually
beneficial relationships especially with selected customers with the main
proposition which assume that successful relationships is the two-way flow of
value .(Freeman, 2019). Trust is the key component of organizational
relationships and management approach to the issue of trust is of academic and
practical significance.
1.1 Statement of the Problem
This research work investigates the impact
of customer relationship management on the perceived performance in the banking
sector. Customers are the major products of every bank and the way these
products are managed determine the effectiveness and efficiency of the banks
and ultimately their performance.
Nigerian Banks have low expectations of their customers in recent time.
Customers have experienced challenges ranging from delay, stock out, non-availability
of staff at service points, unprofessional conduct or rudeness by the staff of
the bank, poor standard of records or improper information, failed promises
among others. In the words of Oluchi (2013), customer service in our banking
industry can be mistaken to mean customer delay and frustration. According to
the author almost every bank in Nigeria encounters similar problem in meeting
customers expectation of services and customer satisfaction.
The issue of money transfer in banks is
one major problem that customers of certain banks have been made to experience.
In most cases, the customer hardly receives the alert of the money transferred
in his account immediately. Also, the long queues and huge crowds in the
banking halls can be highly devastating and discouraging most times especially when the weekend is near. Most
times, this long queues are as a result of the breakdown or delay in process of
the computers used by these cashiers, sometimes it occurs as a result of the
cashier pushing duty to one another as
to who is to attend to the customer or not. Consequently, there is a problem of
customer loyalty and profitability of the bank. Many academic works have been
conducted to describe the corporate banking relationships and the rapidly
changing environment in this sector throughout the globe.
1.2 Objectives of the Study
This study is aimed at examining customer relationship management
and organizational performance in Deposit Money Banks in Delta State. The
following are the specific objectives formulated to guide this study:
i. To ascertain if human resource management
(HRM) bring an increase in customer satisfaction in banks.
ii. To examine the relationship between marketing
and market share in banks.
iii. To determine the
relationship between sales force automation and customer retention of an
organization.
iv. To examine the
relationship between customer service and innovation.
1.3 Research Hypotheses
The purpose of achieving
the study objectives, the following hypotheses were formulated in line with the
research objectives.
H01: There is no significant relationship between human resource
management and customer satisfaction in banks.
H02: There is no significant relationship between
marketing and organizational market share in banks
H03: There is no significant relationship between sales force
automation and customer retention of organisation.
H04: There is no significant relationship between customer service and
innovation.
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