EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON ORGANIZATIONAL PERFORMANCE
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON ORGANIZATIONAL PERFORMANCE
Chapter one
INTRODUCTION
1.1 Background of the Study
Practitioners and scholars are becoming interested in customer relationship management. Companies are increasingly implementing customer-centric strategies, programmes, tools, and technology to manage customer relationships more efficiently and effectively.
They recognise the importance of in-depth and integrated customer knowledge in order to develop close cooperative and partnership ties with their clients.
The rise of new channels and technology is drastically affecting how businesses interact with their customers, resulting in more integration of marketing, sales, and customer care operations within organisations.
For practitioners, customer relationship management represents an enterprise strategy to obtaining comprehensive knowledge of customer behaviour and relationship marketing, which are not distinguishable from one another in the marketing literature (Parvatiyar&Sheth 2000).
In today’s competitive environment, several banks have been able to punch above their weight by first identifying profitable customers and then customising marketing based on customer value.
Banks have opted to compete by providing greater customer service capabilities, which are primarily dependent on the customer relationship management programmes in place.
It is unsurprising that suppliers are keen to point out that by investing resources to customer relationship management systems, all organisations in the financial services sector can gain new competitive advantages. Practitioners and scholars are becoming interested in customer relationship management.
Companies are increasingly implementing customer-centric strategies, programmes, tools, and technology to manage customer relationships more efficiently and effectively. They recognise the importance of in-depth and integrated customer knowledge in order to develop close collaborative and partnership ties with their clients.
According to Nevin (2005), these phrases have been applied to a wide range of topics and perspectives. Some of these themes provide a restricted functional marketing perspective, but others provide a more wide and pragmatic approach.
Database marketing is a restricted view of customer relationship management that focuses on the promotional components of marketing that are associated with database initiatives.
Another narrow, but relevant, perspective is to view customer relationship management solely as a means of retaining customers through a range of post-marketing methods that result in customer bonding or remaining in touch with the client after a transaction (Vavra, 1932).
A more prevalent technique with the current use of information technology is to focus on individual or one-on-one connections with clients that combine database knowledge with a long-term customer retention growth strategy (Peppers & Rogers, 1933).
According to Chatters and Buttle (2003), relationship marketing is “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, individualised, and value added contacts over a long period of time”.
Jackson (1985) defines customer relationship management as “marketing oriented towards strong, lasting relationships with individual accounts” in industrial markets.
0’Dounel(2000) takes a more strategic approach, putting the customer first and altering the role of marketing from manipulating the customer (telling and selling) to actual interaction with the customer (communication and knowledge sharing). In larger terms, has a strategic focus on customer relationship management.
He has emphasised that obtaining new clients should be considered as an intermediate step in the marketing process, with creating closer relationships with these customers and converting them into loyal ones being equally vital components of marketing.
Thus, he advocated that relationship marketing be regarded as “attracting, maintaining, and – in multi-service organisations – enhancing customer relationships”
Berry’s concept of customer relationship management is similar to those of other scholars studying services marketing, including Gummesson (1987) and Levitt (1983).
Although they have all emphasised the importance of interactions in marketing and their impact on customer relationships, Gronroos and Gummesson (2004) adopt a broader approach and argue that relationships with customers should be the focus and dominating paradigm of marketing.
According to Gronroos (2006), marketing is the establishment, maintenance, and enhancement of relationships with customers and other partners at a profit in order to meet the objectives of the parties concerned.
This is accomplished “through a mutual exchange and fulfilment of promises” (p. 138). According to Gronroos’ (2006) definition, cultivating relationships with consumers is the “raison d’etre” of the organisation, and marketing should be focused to developing and improving such ties.
Similarly, Chartes and Buttle (2003) use the distinction between transactional and relational transactions to argue that relationship marketing “refers to all marketing activities directed towards establishing, developing, and maintaining successful relationships.”
The central feature of all Customer Relationship Management and relationship marketing viewpoints is the emphasis on a cooperative and collaborative relationship between the company and its consumers, as well as other marketing actors.
Cooperative partnerships are distinguished by their interdependence and long-term orientation, as opposed to their focus on short-term discrete transactions.
1.2 Statement of the Problems
The new market scenario sharpens competition among competitor enterprises. The number of competitors grows, but the services and goods on the market become increasingly similar at their core.
This has led to lower consumer retention rates and higher corporate costs. For most businesses, customer relationship management is developing as a crucial tool and innovative strategy to expand their products and services.
Effective customer relationship management has become a strategic priority for firms in almost every industry. Companies are getting closer to their consumers, putting more effort into finding new ways to provide value for them,
and converting the customer relationship into one of problem solving and partnership rather than selling and accepting orders. Given the critical role that consumers play in achieving the organization’s goals, the following questions arise.
i. Is there a link between customer relationship management’s effectiveness and efficiency?
ii. Does successful customer relationship management have an impact on its profitability?
iii. Does customer relationship management affect the rate of customer relationships?
iv. Does customer value fall short of customer relationship management?
1.3 Objectives of the Study
The goal of this study is to investigate the effect of customer relationship management on organisational performance, whereas particular objectives are as follows:
i. Determine the impact of customer relationship management on organisational efficiency.
ii. To investigate whether deployment of customer relationship management promotes the profitability of the organisation.
iii. Determine whether customer relationship management contributes to customer value development within the organisation.
IV. Determine whether the organisation has a loyalty programme to improve the lifetime value for its customers.
1.4 RESEARCH QUESTIONS.
The following questions will be investigated as part of this research:
i. Is there a link between customer relationship management and efficient service delivery?
ii. Can the deployment of customer relationship management improve the organization’s profitability?
iii. Can customer relationship management help the organisation create more value for its customers?
1.5 Statement of Hypotheses
Ho1: There is no substantial correlation between customer relationship management and efficient service delivery.
Ho2: No substantial association exists between customer relationship management and profitability.
H03: No meaningful association exists between customer relationship management and value creation.
1.6 Significance of the Study
The study focuses on customer relationship management. This study will help business owners, managers, researchers, and students understand customer management. The study will provide an overview of the impact of customer relationship management in Lagos and Nigeria in general.
It will also provide information on how organisations in Nigeria may develop and refine their capacity to construct and implement efficient customer relationship management.
1.7 The Scope and Limitations of the Study
The scope of this study would be limited to Access Bank PIc in Lagos State. Due to time constraints, the research will involve interviews and questionnaires, and participation will be limited to Access Bank employees in Lagos state.
1.8 Plan of the Study
This study is divided into five chapters. Chapter one describes the study’s context (introduction), statement of the problem, significance and relevance of the investigation, purpose of the study, research questions and research hypothesis, scope and limitations of the study, and study plan.
The second chapter reviews the literature and provides a theoretical framework that contains ideas and definitions. Chapter three discusses research technique.
The fourth chapter focuses on data presentation, critical analysis of obtained data, and results analysis. The chapter includes a summary, conclusion, and recommendations.
Need help with a related project topic or New topic? Send Us Your Topic