CUSTOMER RELATIONSHIP AND ORGANIZATIONAL PERFORMANCE

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(A SURVEY OF SELECTED COMMERCIAL BANKS IN PORT HARCOURT)

ABSTRACT

The study examines customer relationship management and organizational performance. The main objective of the study is to examine the relationship between customer relationship management and organizational performance, the specific objectives are to examine the relationship between sales force automation and organizational performance, to examine the relationship between customer service and organizational performance, to examine the relationship between customer orientation and organizational performance. The population of the study was made up of one hundred (100) respondents selected from Firs Bank, Union Bank and Guaranteed Trust Bank. The Taro Yemen’s formulae were used to determine the sample size of 80.  Finding revealed that customer relationship management has positive significant impact on organizational performance. Based on the finding of the study, summary, conclusion, and recommendation was made that managers should notice different processes and activities of CRM in banks, Bank management should understand who is the valuable potential customer,  what kind of service and product they need,  why the customer  connects to competitors, how they can retain  losing customers and how they can attract valuable customer  to increase their performance.

TABLE OF CONTENTS

TITLE PAGE       i

CERTIFICATION         iii

DEDICATION     iv

ACKNOWLEDGEMENT       v

ABSTRACT        vi

TABLE OF CONTENTS        vii

CHAPTER 1        1

INTRODUCTION         1

1.1 BACKGROUND OF THE STUDY     1

1.2 STATEMENT OF PROBLEMS 3

1.3 OBJECTIVES O THE STUDY  3

1.4 RESEARCH QUESTIONS         4

1.5 SIGNIFICANCE OF THE STUDY      4

1.6 SCOPE OF THE STUDY 5

1.7 LIMITATIONS OF THE STUDY        5

1.8 DEFINITION OF TERMS          6

CHAPTER 2        7

LITERATURE REVIEW        7

2.1 CONCEPTUAL FRAMEWORK         7

2.1.1 CONCEPT OF CUSTOMER RELATIONSHIP MANAGEMENT   8

2.1.2 DIMENSIONS OF CUSTOMER RELATIONSHIP MANAGEMENT      10

2.1.3 ORGANIZATIONAL PERFORMANCE    13

2.1.4 MEASURES OF ORGANIZATIONAL PERFORMANCE     14

2.1.5 RELATIONSHIP BETWEEN CUSTOMER RELATIONSHIP MANAGEMENT AND ORGANIZATIONAL PERFORMANCE   15

2.2 THEORITICAL FRAMEWORK          16

2.3 EMPIRICAL RAMEWORK       18

CHAPTER 3        22

RESEARCH METHODOLOGY      22

3.1 RESEARCH DESIGN      22

3.2 SAMPLE DESIGN  23

3.3 POPULATION        23

3.4 SAMPLE SIZE        23

3.5 METHOD OF DATA COLLECTION  24

CHAPTER 4        26

DATA PRESENTATION AND ANALYSIS       26

4.1  DATA COLLECTION AND PRESENTATION    26

4.2 DATA ANALYSIS  27

4.3 DISCUSSION OF FINDINGS    31

CHAPTER 5        34

SUMMARY, CONCLUION AND RECOMMENDATIONS  34

5.1 SUMMARY   34

5.2 CONCLUSION        34

5.3 RECOMMENDATION     36

REFERENCE      37

APPENDIX I       40

APPENDIX II      41

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

          Customer relationship management is not a new concept, since the late 60s researchers acknowledged that attracting and retaining customers is the main purpose of any business (Mendoza, Marius, Peres, & Griman, 2007). In the current organizational environment, customers are crucial elements and place at the central of all marketing actions (Karakostas, Kardaras,&   Papathanassiou, 2005). Recently, consumers’   needs   and expectations have changed. To notice to various customers and also their needs, organizations want to apply differentiation and customer-oriented marketing strategies for  achieving competitive advantage.  Customer Relationship Management is one of this marketing strategies that is used to create and manage relationships between organizations and customers more effectively.  (Gefen and Ridings, 2002; Ngai, 2005). If organizations try to Improve relationships with  their consumers it can leads to  have more loyal customers and also increase profitability.

CRM processes are   the organizational activities   that notice the management of the customer relationship (Moutot & Bascoul, 2008). Understanding this point that   what kinds of CRM activities, can be employed by organizations and how these activities can influence on different measures of performance is important. CRM also is a kind of business strategy that helps banks to identify the  most profitable customers and prospects, and allocate attention  to expand relationships with  customers by   making, and customized services that delivered to customers through the various bank channels.

An important question in the implementation of CRM is what  is  the effect  of  CRM  on  organizational performance. So, there is a strong tendency for researches   to measure the relationship between CRM   and different measures of performance. The contribution of this paper is to conceptualize a framework  that shows how different  CRM processes will affect on organizational performance measures. The primary purpose of this article focuses on understanding the relationship between the different CRM processes and different measures of Iranian bank’s performance. Two processes of CRM, in this study, which are, Relationship initiation,  Relationship maintenance,  would  be considered. This study examines whether relationship initiation, relationship maintenance   have any effect on performance in banks.   Performance   is defined as financial, customer based, internal process and learning and growth performance. From the foregoing, the study is intended to examine the relationship between customer relationship management and organizational performance.

1.2 STATEMENT OF PROBLEMS

Despite the vast research on Customer relationship management it is still not well understood in African countries and especially Nigeria (Edwards, 2013).

CRM processes are   the organizational activities   that notice the management of the customer relationship (Moutot & Bascoul, 2008). Understanding this point that   what kinds of CRM activities, can be employed by organizations and how these activities can influence  on different measures of  performance is important. CRM  also is a kind of  business strategy  that helps banks to identify the  most profitable customers and prospects, and allocate attention  to expand relationships with  customers by   making, and customized services that delivered to customers through the various bank channels. Therefore, the problems identified are:

i.        Lack of Sale force Automation.

ii.       Poor Customer orientation.

iii.      Inadequate customer orientation.

1.3 OBJECTIVES O THE STUDY

The main objective of the study is to examine the relationship between customer relationship management and organizational performance. The specific objectives are as follows:

i.        To examine the relationship between sales force automation and  organizational performance.

ii.       To examine the relationship between customer service and organizational performance.

iii.      To examine the relationship between customer orientation and organizational performance.

iv.      To examine the relationship between organizational culture and organizational performance.

1.4 RESEARCH QUESTIONS

i.        To what extent does sales force automation influence organizational performance?

ii.       To what extent does customer service influence organizational performance?

iii.      To what extent does customer orientation influence organizational performance?

iv.      What is the extent to which organizational culture associate with organizational performance?

1.5 SIGNIFICANCE OF THE STUDY

There are fundamental truths and findings as regards to customer relationship management and organizational performance. These tenets are expected to be evaluated and exposed at the end of this empirical investigation. Thus, this study will be useful to other researchers especially students who want to know more about customer relationship management and organizational performance. For the management of Banks in Port Harcourt metropolis.

And performance would be adopted for decision-making at the co-operate level. The management of banks could use effective customer relation methods to regulate the ailing sector. Other managers and workers in general could fall back upon this work as a guide for better organizational performance.

1.6 SCOPE OF THE STUDY

The study focuses on the impacts of customer relationship management and organizational performance. The scope of the study covers some selected commercial banks in Port Harcourt metropolis, which include First Bank, Union Bank and guarantee trust bank.

1.7 LIMITATIONS OF THE STUDY

In carrying out this research work, the researcher was constraint by lot of factors which include but not limited to the following:

TIME CONSTRAINT: The time frame provision for this study was short.

FINANCIAL CONSTRAINT: Usually, a study of this nature involved some level of expenditure therefore, finance was also a limiting factor.

POOR RESPONSE: poor response from the respondent and inability to access the entire population of the study.

1.8 DEFINITION OF TERMS

          CUSTOMER RELATIONSHIP MANAGEMENT: It refers to practices, strategies and technologies that companies use to manage and analyze customer interactions and data throughout the customer lifecycle, with the goal of improving business relationships with customers, assisting in customer retention and driving sales growth.

MANAGEMENT: Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling and directing an organization’s resources in order to achieve the objectives of that policy.

ORGANIZATIONAL: Is a combination of people or individuals efforts working together in purse of common goals. They are made of people, purpose, structure; they utilize technology, common values systems operate in the context of internal and external environment, leadership styles.

PERFORMANCE: Is an act of performing carrying into executive or action, achievement accomplishment representation by action.

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