IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON NON-CONSUMER CUSTOMER BUYING BEHAVIOR
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IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON NON-CONSUMER CUSTOMER BUYING BEHAVIOR
Chapter one
INTRODUCTION
1.1 Background for the Study
The global market has had an impact on all firms, notably financial institutions. Organisations now aspire not only to serve clients, but also to do it more efficiently and effectively than their competitors in the competitive market place in order to achieve their objectives. The most important goal of every organisation is to preserve customer satisfaction and to prioritise a customer-centric approach in their organisational and marketing initiatives.
Customer happiness is extremely important, as pleased clients are like free advertising for financial institutions. According to the business’s strategies, events, and processes, the customer must be prioritised. In fact, selling to existing clients is easier and more profitable than acquiring new ones.
Financial institutions are developing strategies to assure client happiness and retention; so, their workers must be more customer-focused and service-oriented in order to satisfy their customers.
Customer relationship management (CRM) is a concept for managing a company’s contacts with customers, clients, and sales prospects in order to meet financial institutions’ objectives such as customer satisfaction.
It entails utilising technology to organise, automate, and synchronise company operations. The goals of CRM are to increase profitability, income, and customer pleasure.
To achieve CRM, many organisations utilise a set of tools, technology, and procedures to support the customer relationship and increase sales. As a result, CRM is more of a strategic business and process issue than a technological one.
Customer relationship management (CRM) is a concept that governs a company’s relationships with customers, clients, and sales leads. (Long et al., 2013.)
Bowen and Chen (2001) believe that having satisfied consumers is not enough. This is because consumer pleasure must have a direct impact on both contentment and loyalty. Sivadas and BarkerPrewitt (2000) emphasise that there is a growing realisation that the ultimate goal of customer satisfaction measurement should be customer loyalty.
Many organisations just classify customer satisfaction assessment as a sort of “marketing intelligence” rather than using it as a management tool to construct customer service quality improvement processes and boost profit. (Linnell 2009)
Companies use CRM to enhance their relationships with existing customers and attract new prospects in order to influence their purchasing behaviour, increase customer happiness and loyalty, and so increase sales volumes and profitability.
The business activities require the help of a CRM system that allows for the creation of a single perspective of both the customer and the firm. CRM systems make it easier to collect and analyse customer data, which leads to better management of client interactions.
CRM capability is grouped into three categories: marketing automation, sales force automation, and customer care and support (Persson, 2004).
Shukla (2010), emphasising the importance of marketing research, claims that a large proportion of organisations fail to meet superior client demands because their perspective of what customers want differs from reality. ‘It is not because they do not care about the demands of their clients; rather, they try to achieve the wrong goal with the wrong means.
1.2 Statement of Problem
Globalisation and widespread internet use have drastically altered customers’ perceptions of the world. People are more connected and knowledgeable than ever.
The flow of goods and services, combined with large marketing and advertisements in many parts of the world, tends to provide clients more options than ever before.
On the other side, researchers discovered various issues and concerns related to Customer Relationship Management and its impact on consumer purchasing behaviour. One of the problems is determining the efficacy of the CRM initiatives.
Some questions continue to elicit conflicting responses among researchers. These include questions about how to quantify the impact of various CRM projects on non-consumer customers. How can the effectiveness of CRM in an enterprise be measured?
Many businesses, particularly in the industrialised world, have adopted the concept of CRM. However, research shows that the major challenge for organisations is to quantify the success and impact of CRM on their consumers’ purchasing behaviour.
The issue is how the efficiency of CRM in influencing non-consumer clients’ purchasing behaviour can be consistently monitored; yet, failed CRM deployments may result in lower customer satisfaction and loyalty. This means more defections and a loss of allegiance.
1.3 Object of the Study
The primary goal of this study is to determine the influence of CRM on non-consumer customer behaviour. Specifically, the study aims to:
1. Determine the impact of CRM on the purchasing behaviour of non-consumer customers.
2. Investigate the elements that influence the purchasing behaviour of non-consumer customers.
3. Examine the impact of CRM on organisations.
1.4 Research question
1. Does CRM have an impact on the purchasing behaviour of non-consumer customers?
2. What factors influence the purchasing decisions of non-consumer customers?
3. What influence does CRM have on the organisation?
1.5 Research Hypothesis.
Ho: CRM has little impact on the purchasing behaviour of non-consumer customers.
Hello: There is an impact of CRM on the purchasing behaviour of non-consumer customers.
1.6 Significance of the Study
Although there have been numerous studies conducted on the influence of CRM on consumer purchasing behaviour, this study takes a different approach, examining the impact of CRM on ‘Non Consumer Customers’ purchasing behaviour.
Consumers are the ones who ultimately consume or use the products. These are the people who can describe how it tastes. In contrast, non-consumer consumers may have little understanding how a product is used.
As a result, this study is intended to contribute to current literature and aid in the dissemination of knowledge about CRM and its impact on non-consumer customer purchasing behaviour in Nigeria. Again, the study provides additional proof that CRM can positively influence non-consumer clients’ purchasing behaviour.
Finally, this research will contribute to the current CRM literatures while also serving as a guide and reference for future research on the same dimension.
1.7 Scope of Study
This research will be conducted in Lagos, Nigeria’s south-western state, and will also include a review of related literature and concepts on CRM and non-consumer customer behaviour.
1.8 Delimitation of the Study
Obtaining funding for general research projects will be difficult during the course of studies. Correspondents may also be unable or unwilling to complete and submit the questionnaires provided to them.
However, it is hoped that these limits will be addressed by making the best use of existing materials and devoting more time to study. As a result, it is strongly thought that despite these constraints, their impact on this research report will be small, allowing the study’s purpose and significance to be achieved.
1.9 Definition of Terms
CRM: a method for managing a company’s interactions with present and potential customers. It involves data analysis of customers’ history with a company to strengthen business connections with customers, specifically focusing on customer retention and eventually driving sales growth.
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