Project Abstract

Abstract
Customer relationship management (CRM) has become a crucial strategy for businesses aiming to enhance customer satisfaction and loyalty. This research project investigates the impact of CRM on customers' satisfaction by analyzing various components of CRM and their influence on customer perceptions and behaviors. Through a comprehensive literature review, this study explores the theoretical foundations of CRM, including its definition, objectives, and key elements such as customer data management, personalized communication, and customer service strategies. The research further examines the theoretical link between CRM and customer satisfaction, highlighting the importance of building strong relationships with customers through effective communication, personalized interactions, and timely responses to their needs. By understanding customers' preferences, behaviors, and feedback, businesses can tailor their CRM strategies to align with customer expectations and enhance overall satisfaction levels. Furthermore, this study explores the role of technology in modern CRM practices, emphasizing the use of CRM software and analytics tools to streamline customer interactions, track customer data, and improve decision-making processes. By leveraging technology effectively, businesses can create more personalized and efficient customer experiences, leading to higher levels of satisfaction and loyalty. In addition to technology, the research investigates the organizational aspects of CRM implementation, including the importance of employee training, cross-departmental collaboration, and leadership support in fostering a customer-centric culture. By aligning internal processes and resources with CRM objectives, businesses can create a customer-focused environment that prioritizes customer satisfaction and retention. Overall, the findings of this research project suggest that CRM plays a significant role in shaping customers' perceptions and satisfaction levels. By implementing effective CRM strategies that focus on personalized communication, data-driven insights, and organizational alignment, businesses can build stronger relationships with customers, increase customer satisfaction, and ultimately drive business growth and profitability.

Project Overview

1.0     INTRODUCTION

1.1   BACKGROUND OF STUDY

In this era of sophisticated business environment, it is imperative that organisation should be more interested in satisfying their customers. As a matter of fact, customers nowadays are becoming more sophisticated than before especially in this new economy (Kotler 2002).  That is why  banks  today must take this as a case to consider.

But what is a relationship? A relationship is a situation whereby two parties interact with the motive of enjoying mutual benefits from each other, that is, one complements the other for cohabiting.  

The aim of customer relationship management (CRM) is to produce high customer equity. Customer equity is the total of the discounted life-time value of all of the firm’s customers (Day 1994). Clearly, the more loyal the customers, the higher equity.

There are three drivers of customer equity; namely value equity, brand equity, and relationship equity.

Value equity is the customer’s objective assessment of the utility of an offering based on perceptions of its benefits relative to its cost. The sub drivers of value equity are quality, price and convenience.

Brand equity is the customer’s subjective and intangible assessment of the brand, above and beyond its objectively perceived value. The sub drivers of brand equity are customers brand awareness, customer attitude towards brand, and customer perception of brand ethnics.

Relationship equity is the customer’s tendency to stick with the brand, above and beyond objective and subjective assessments of its worth. Sub drivers of relationship equity include loyalty programs, special recognition and treatment programs, community building programs, and knowledge-building programs.

The best relationship marketing going on is driven by technology. A company decides which driver(s) to strengthen for the best pay-off.

As a matter of fact, as CRM has become a necessity in this era of mega-marketing, there are still some bottle necks in the implementation of CRM, these are lack of trust, the lack of understanding, lack of communication, lack of interest and lack of commitment.

1.10STATEMENT OF PROBLEM

Meanwhile, empirical studies on CRM on customers’ satisfactio seems to be scanty. This can be attributed to the fact that most theorist focus on other areas of marketing functions and practices rather than CRM.

Given the economic significance of CRM to the organisation (Banks), it is essential that meaningful research should be undertaken to discover the impact of CRM on customers’ satisfaction.

To address this issue empirically, the main focus of  the study is to carryout an empirical research aimed at addressing the following issues:

a.           The relationship between the dependency level of banks’ customer satisfaction on customer relationship management.

b.           The way banks can monitor their services to ensure effective customer satisfaction.

c.           The ways banks could enhance their service delivery so as to meet customers’ need.

d.           The ways banks have to go about strengthening their customer relationship.

1.11OBJECTIVE OF STUDY

Empirically, the purpose and objective of this study is:

(i)     To identify/examine whether lack of trust in relationship management can bring about customers’ satisfaction.

(ii)   To identify/examine whether lack of understanding in relationship management can bring about costumers’ satisfaction.

(iii)   To identify/examine whether lack of good communication in relationship management can bring about customers’ satisfaction.

(iv)               To identify/examine whether lack of interest in relationship management can bring about customers’ satisfaction.

(v)                To identify/examine whether lack of commitment in relationship management can bring about customers’ satisfaction.

1.12RESEARCH QUESTIONS

These research questions would be answered in the course of this research work:

(i)     What is the relationship between good communication and relationship management?

(ii)                 How can banks monitor their services to ensure effective customer satisfaction?

(iii)                Does trust affects relationship management on customer satisfaction.

(iv)               What can banks do to enhance their service delivery  so as to meet customers’ need?

(v)                What does banks have to do to strengthen  their customer relationship?

(vi)               Does interest affect relationship management on customers’ satisfaction?

(vii)              Does understanding affect relationship management on customers’ satisfaction?

(viii)            Does commitment affect relationship management on customers’ satisfaction?

1.13RESEARCH HYPOTHESES

The following would be tested in course of the research:

HYPOTHESIS 1

Ho: Lack of communication in relationship management may

not significantly affect customer satisfaction.

H1:  Lack of communication in relationship management may

significantly affect customer satisfaction.

HYPOTHESIS 2

Ho: Lack of understanding on the part of relationship

management may not significantly affect customer satisfaction.

H1: Lack of understanding on the part of relationship

management may not significantly affect customer satisfaction.

1.14SIGNIFICANCE OF STUDY

This study is significant to the extent that it is able to highlight previous study, an attendant findings carried out by previous scholars in this very are;  and to the extent that  this study being undertaking  attendant’s findings are able to complement previous findings such that both findings can provide bases for corporate policy formulation and decision making.

1.15SCOPE/ DELIMITATION OF THE STUDY

This study relate to the bank sector of the economy and it is virtually impossible to cover all banks in the country or the sector, the study would therefore targeted at fidelity bank as a case study

1.16LIMITATION OF STUDY

During the course of the study there are some constraints experienced by the researcher. These are as follows:

(i)          Financial constraint.

(ii)         Lack of time

(iii)        Unfavourable weather

(iv)       The attitude of the respondents, towards questionnaire administration.

1.17OPERATIONAL DEFINITION OF KEY TERMS