Customer Relationship Management And Marketing Performance In The Nigeria Banking Industry

Project and Seminar Material for Marketing

Customer Relationship Management And Marketing Performance In The Nigeria Banking Industry


Abstract


This study was carried out on customer relationship management and marketing performance in the Nigerian banking industry. The competitive nature of our capitalist economy has obviously necessitated the application of certain techniques by banks in a bid to sustain customer patronage, remain in business and outwit competitors. Herein lies the substance of relationship as a communication, marketing and public relations technique aimed at sustaining customers’ patronage. On this note therefore, this study among others, examines the influence of relationship marketing in customers’ patronage of banks with focus on Gtbank, Eco bank, Skye bank, Uba, Fidelity bank and banks in Port Harcourt. For the purpose of this study, the survey research design was used to study a representative size of the population total of 371 sample size was studied from a target population of 1,452 which is the population of staff of selectedbanks in Port Harcourt. Questions designed in the Likert Scale Format was used as major instrument for the collection of data while mean score was used for the analysis of the research data. Findings revealed that zenith bank Port Harcourt city branch regularly carried out various relationship efforts in line with the socio- cultural norms of the people of Port Harcourt and this has translated to positive influence on patronage by its customers. The study revealed that the business men accepted the relationship marketing of the banks. Deriving from this therefore, the study recommends that banks should increase the community social responsibility efforts for a steady long term relationship marketing and patronage in line with the focus of relationship marketing.


Chapter One


Introduction

1.1 Background of the Study

The banking sector is becoming increasingly competitive around the world. Today, many businesses such as banks, insurance companies, and other service providers realize the importance of Customer Relationship Management (CRM) and its potential to help them acquire new customers, retain existing ones and maximize their lifetime value.

Customer Relationship Management is a sound business strategy to identify the bank’s most profitable customers and prospects, and devotes time and attention to expanding account 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. Further, 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 (Heffernan et al., 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 and 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 (Fox, 2001). This 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(Christopher, M., et al., 2002). Trust key is a component of organizational relationships, and management approach to the issue of trust is of academic and practical significance. A rapidly growing body of literature recognizes that trust represents a significant variable that influences organizational productivity (Kramer & Tyler,2006; Lewickiet al., 2008; Mayer et al., 2005; Mayer &Davis, 2009; Prusak& Cohen, 2010).

In competitive consumer markets, customer choice decisions are at the root of business survival, focusing attention on the attraction and retention of customers through personalized service. Rosenberg and Czepiel (2004) estimate that the cost of winning a new customer is five times higher than that of maintaining an existing

customer, while Reichheld and Sasser (2000) estimate that the retention of an additional 5% of customers, can increase profit by nearly 100%. Maintenance of the customer relationship is therefore cost-effective marketing, and has become a key aspect of most firm’s business strategy, prompting extensive deployment of Customer Relationship Management (CRM) systems (Morgan & Hunt, 1994; Kim et al., 2003). The nature of CRM aims to maximize customer value in the long term, by focusing business processes, marketing and customer service on client relationship maintenance, through the coordinating agency of an information technology (IT) system. Implementation of such a system is not a panacea, and is not, of itself, sufficient to transform a production oriented organization into a customer-oriented one (Kanji, 2002; Chang, 2005), which will require a wide-ranging overhaul of organizational structures, employee training and reward system, as well as appropriate IT support (Chen &Popovich, 2003). This study therefore examines the impact of customer relationship management and bank performance in Rivers State, Nigeria.


1.2 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. Nigeria Banks have fall short of the expectations of their customers in recent time. Customers have experienced challenges ranging from delayment, 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 Ogunnaike and Ogbari (2008), customer service in our banking industry can be mistaken to mean customer delay and frustration. According to the authors almost every Nigeria bank 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 payment 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 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.

Customers have experienced challenges ranging from delayment, 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. Many academic works have been conducted to describe the corporate banking relationships and the rapidly changing environment in this sector throughout the globe.


1.3 Purpose of the Study

The main purpose of this study was to investigate the relationship between Customer Relationship Management and Marketing Performance in the Nigeria Banking Industry. The specific objectives are as the follows:

  1. To find out how regular banks engage in relationship management and marketing.
  2. To evaluate various relationship management and marketing techniques adopted by banks in Port Harcourt town.
  3. To assess the relevance of such relationship management and marketing approaches within the context of socio- economic realities of Port Harcourt people.
  4. To examine people’s perception of such relationship management and marketing approaches.
  5. To determine the overall influence of such relationship management and marketing approaches on customers’ patronage of bank products and services.

1.4 Research Questions

The following research questions guided the research for the purpose of this study:-

  1. How regular does banks Port Harcourt engage in relationship management and marketing ?
  2. What are the various relationship management and marketing techniques adopted by banks?
  3. To what extent are relationships marketing techniques of banks relevant within the context of the socio-economic realities of Port Harcourt people?
  4. How do the public perceive banks relationship management and marketing approaches?
  5. To what level has a relationship management and marketing effort of banks in Port Harcourt town influence customers’ patronage?

1.6 Significance of the Study

The study on the relationship between CRM and bank performance is very important because CRM led to rapid growth of business through retention of the profitable customer segment, increase in profit of the bank due to low cost of managing customers(Sharma, 2011). Therefore this study will add new knowledge to bankers in Nigerian regarding the extra value banks can earn through implementation of CRM. Moreover the study will in light bankers on factors that are important to be considered when designing and implementing CRM in their organization so as to avoid excessive investment in CRM without getting significant reward in return.

This study will be of benefits and interest not only to banks in Nigeria, but it will be valuable to other service sectors in Nigeria as a whole. The study will also be a source of secondary data to other researchers who wish to conduct studies on related issues. It willagain act as mainstream for generating, keeping and maintaining customers.
This study is important for customers, employees, banks, academia and even government. Customers will have access to better and qualitative services from the banks. Employees can also have improved conditions of service due to better organizational performance. Banks can gain in terms of superior performance. The research can also benefit the academia in terms of addition to knowledge.


1.7 Scope of Study

The general scope of this study covers Customer relationship management and company performance. The geographical scope is Rivers State of Nigeria. The study will be limited to (Gtbank, Eco bank, Skye bank, Uba, Fidelity bank andbanks) in Port Harcourt.


1.8 Limitation of the Study

No research work is devoid of limitations. This study in that wise, is no exception. It therefore suffered the following constraints.

Lack of Finance:

Finance was the major problem encountered in this study by the researcher. Money to travel and source for materials: Also, typing, making photocopies, binding the project work constituted a problem to the researcher.

Time Constraint:

The time available for this study was not enough for me as I had to read, do assignments, write term papers I tests engage in my private activities and prepare for my final year examinations.


1.9 Definition of Terms

Customer Relationship Management:

Is a systemic managerial process for creating, maintaining, and developing relationships with customers in every position in order to maximize relationship value.

Marketing Performance:

Refers to the improvement of the organizational status in the market (market share), improvement of the customers’ perception of organization and its products, and increase in their loyalty toward organization

Customer Knowledge Management:

Refers to acquiring, sharing, and developing the customer knowledge among employees for making profitto the organization and customers

Sales Growth:

The increase in sales over a specific period of time, often but not necessarily annually.

Profitability:

Is the ability of a business to earn a profit.

Customer Loyalty:

Customer loyalty is defined as the commitment of customers to purchasing products and services from a specific business and unrest the activities of rivalry companies attempting to attract their patronage.

Profitability:

This is a function of customer satisfaction with the firms produce or service offerings.


Chapter Five


Summary, Conclusion and Recommendation

5.1 Summary

The nature of business competitiveness in a capitalist economy like Nigeria and Port Harcourt in particular, has obviously necessitated the application of certain techniques by banks in a bid to sustain customer patronage, remain in business and outwit competitors. As studies showed, customer-firm relationship is a vital factor in this dynamics. Thus, relationship management and marketing has become a household factor in the literature and several researches aimed at proffering solution to the challenge of sustaining customers’ patronage by business organizations. As a result, this study undertook the examination of the influence of relationship management and marketing in customers’ patronage of banks with focus on banks, Port Harcourt city branch. The survey research design was used to study a sample of the population of 371 and 200 business men from the Port Harcourt markets which is the population of academic staff of College of Health Sciences Port Harcourt campus. Respectively, a sample of 6 was purposely selected from a total number of 30 banks staff of Port Harcourt city branch. Questions were designed in the Likert scale format were used as major instrument for the collection of data while mean score was used for the analysis of research data.

In view of the analyzed data in the previous chapter, in summary, it is confirmed in the study that banks regularly carry out relationship management and marketing activities which among others, included face-to- face interaction with the target market on issues relating to not just the bank but the financial well being of the customers as it relates to the banks’ activities. This constitutes interaction which integrates the benefit of advertisement, publicity, public relations, personal selling derives from the fact that it is better and cost effective to retain a customer than to get new ones. As such, relationship management and marketing efforts of banks primarily aims at retaining the patronage of customers while using it as a basis to gain new customers for the bank. In view of this therefore the interaction holds sway in the popular comprehensive language in quasi formal or informal setting that do not insult the socio – cultural realities of the Port Harcourt people. It therefore is no surprise that the message content of such relationship management and marketing is understood by both parties which make room for believability and trust and thus accounts for the perception of the bank as a friend that keeps its promises thereby influence the customers towards patronage.


5.2 Conclusion

This study concludes that the relationship management and marketing activities of banks pays off, and that the need for relationship management and marketing has continued to be relevance since majority of organizations no longer depend solely on the media for information in view of the characteristic power vintage. These are taken care of by such factors as relationship management and marketing activities. Related to this is the seeming aggressive rural banking that characterizes the banking sector. Presently in Nigeria, the banksrelationship management and marketing efforts also qualify as a right step in the right direction to retain old customers while gaining new ones.

This accounts for why the bank extends its relationship management and marketing to staff of College of Health Sciences, University of Port Harcourt, Rivers State, even though the College does not use the bank as its official bank. The business developing confidence and trust in the bank.

In conclusion therefore bankss’ regular engagement in relationship management and marketing efforts which aligns with the socio- cultural realities of Port Harcourt people has meaningfully helped at improving the corporate image of the bank which translates to increased patronage of the bank by its customers.


5.2 Recommendations

The researcher recommends that banks should increase their community social responsibility efforts in Port Harcourt by providing such facilities as soft loan for small and medium scale enterprises at accessible rate since Port Harcourt is the commercial nerve centre in Rivers state. This, coupled with its relationship management and marketing would endear Port Harcourt especially business men to the bank. In line with its relationship management and marketing efforts, the bank should intermittently hold /organize lunch with various stakeholders like market women or Christian mothers with a view to further gaining their patronage.

For the purpose of further studies however, efforts should be focused on the relationship management and marketing efforts of other banks as basis for a comparative analysis of different banks relationship management and marketing efforts and their impact on customers’ patronage.

Moreso, further studies should focus on other areas in Rivers state (not Port Harcourt) so as to measure the influence of differing cultures on the influence of relationship management and marketing efforts on customers.


How To Get The Complete Material For Customer Relationship Management And Marketing Performance In The Nigeria Banking Industry


Project Material Download


3,000 Naira


The complete material will be sent to your email address after payment
( Quick & Simple)

FOR CLIENTS IN NIGERIA:
CLICK HERE to make purchase (₦3,000)

FOR CLIENTS OUTSIDE NIGERIA:
CLICK HERE to make purchase ($15)

  Contact Our Help Desk


⚠️ Need a different topic? Perform a quick search



Get A Complete Business Plan For Any Business In Nigeria

Business Plan for Businesses in Nigeria

  Business Plans in Nigeria


Disclaimer


This research material “Customer Relationship Management And Marketing Performance In The Nigeria Banking Industry” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as samphina.com.ng will not be liable for any who copied the material.

The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”.

samphina.com.ng is only providing this material “Customer Relationship Management And Marketing Performance In The Nigeria Banking Industry” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.