Forevery bank to succeed, customers play an important role. Customers in today’sworld hold the keys to influencing the banking industry on improving theirrelationships with any bank and this may lead to customer satisfaction andpossibly customer retention.
In thebanking industry, attaining success towards providing quality services tocustomers has been an issue of interest to most banking institutions. Incomputer applications in management it was communicated that computer systemsare a combination of various systems and so with banks many computer appliedsystems are created to cutter for the customer service provisions and marketingstrategies are also utilised for the same to gain a share in the competitiveenvironment.To understand what CRM means, Vince defines CRM as, “a businessstrategy that is aimed at gaining long-term competitive advantage by optimally extractingbusiness value and delivering customer value simultaneously” (Kellen, 2002, p. 4). Theimplementation of a CRM system is actually a marketing strategy which alsomakes bankers in the industry realize that their prime business purpose is to”create and keep a customer” and to “view business processes consistingof tightly integrated efforts to discover, create, and satisfy customerneeds” (Sharmila, 2014, p. 2). However,it is of much importance to take note that implementing a CRM system is not aseasy as one may think.
There are challenges pertaining to the implementationand that is where strategic planning and marketing management comes in becausemarketers need to segment the market and select the appropriate market in orderto develop the offerings value positioning.1.3 Objectives Theimpact of a CRM system on any business is cardinal, CRM enables banks to havehigher level of rank in the banking industry as it provides them with customerinformation stored in a database that can be accessed at any time in theworking environment. The research objectives are as following:1. DefineCRM and state its significance to the stated bank2. Explorethe Customers perspective of CRM3.
Explorehow Customer Satisfaction is impacted by CRM4. LinkingCustomer Satisfaction and Customer Retention5. Torecommend the significance of CRM in organisations which may lead to customersatisfaction1.4 Significance of the StudyThesignificance of this study is to explore CRM bearing in mind the consolidatedthree courses namely; Computer applications in management, marketing managementas well as Strategic management and ascertain its impact on customers’satisfaction in an institution like the Zanaco bank’s West branch of Ndola. Thebank already has an implemented CRM system which has been working to theirbenefit that keeps customer information which is used when giving bank loans tocustomers, bonds, and also states the accounts customers hold.
Decision making isalso essential with such information at hand as this helps the bank make thenecessary decisions on customers and the bank itself. CRM will be outlined,stating how influential it is on customer satisfaction and possibly retentionand with a well implemented system, the research will state the customers’perspective as to how it helps improve the value of the organisation for thesatisfaction of customers. 2.0 Chapter II – Main ContentThesecond chapter of this research demonstrates the literature review.
The significance of the study will beoutlined in this chapter. The customer’s perspective of CRM is the main focusbut, information about the Zanaco bank and why most banks use a CRM system willalso be stated. The review is only limited to the customers perspective on theimpact of CRM on customer satisfaction and possibly retention at Zanaco bank.2.1 Zanaco Bank’s West branch ofNdolaZambia National Commercial Bank, commonly referred to by the name”Zanaco”, is a commercialbank in Zambia. The bank wasfounded in 1969 by the government of Zambia and its headquarters lie in Lusaka,Zambia.
With a sore purpose of delivering financial services to the customersof Zambia, its main products are loans, savings, debit cards, and investments (Wikipedia, 2014). The bank is astrong retail franchise with relatively new corporate and some treasurycapabilities. It happens to be the largest bank in Zambia with 64 branches andagencies spread across the nation. Having created an employment rating of over1, 300 employees and a large customer base of about 750, 000, it is for thisreason why the bank was recognized as the best bank in Zambia for 2 years.
As itstands, it is required by law that every bank should have a CRM systeminstalled in the designated bank.2.2 Customer RelationshipManagementHenceforth, CRM can defined as “a broad approach for creating, maintaining andexpanding customer relationships usually aimed at understanding, anticipating,managing and personalizing the needs of customers, both current and potentialcustomers” (Hao, 2013, p.
33). Inmost cases, the implementation of CRM measurement by most companies is usuallydifferent depending on their internal decision making styles. It is thesedecision making styles that enforce companies to make decisions about customerstrategies which help influence the decision making process or the specificdecision makers or validate initial ideas about how to manage customerrelationships (Kellen, 2002, p. 7). By using the CRM system in the banking industry,banks are likely to gain insight on the behaviours of customers and focus onthe value of those customers. If the CRM system works as hoped, the significanceof the system can help the business to: 1. Improve on customer service and makecall centres more efficient2.
Easy to strategize on how tostore and capture more data on customers 3. Improve employee customerrelations4. Discover new customers (Shahzeb Ali Malik & Trevor Wood-Harper, n.d., p. 314).In order to achieve a successfulCRM initiative, its three key elements are; People, Process, and Technology.
The people involved in the CRMinitiative range from the branch manager to the very least person in the bank.Processes involve activities that can be implemented to serve customers better andthis includes marketing strategies such as holistic marketing to deliver a highlevel of service quality. With technology, systems andapplication software has to be utilised of which the right technology needs tobe selected for customer needs to be driven by the companies (improved) CRMprocesses, real-time provisions, holistic information to employees, and toeasily operate for quick adoption. “If one of these three foundations is notsound, the entire CRM structure will crumble” (Successful CRM, 2013).Goodcustomer relationship managers strive to create meaningful conversations withtheir customers by asking concrete and meaningful questions that will helpbring both parties to an understanding. When customers respond to questions inan honest manner, relationship building takes place with trust as one of itsprime aspects.Beforethe implementation of CRM, most banks used to experience difficulties inhandling customer relations and it became clear that their current processesback then experienced bad customer service inquiries and tracking sales leadsdue insufficient information on customers by the bank.
Complaints wereescalating from diverse customers holding different accounts from all over, andmanagers needed better tools to track and report data based on the customersbanking habits. Henceforth, the implementation of a CRM system has helped thebanking industry’s proactivity in sales and customer activities, thanks to the accumulatedbusiness intelligence capabilities in CRM (Taylor, 2011). Rosenfield, (2012)came up with what he called the 10 commandments driving CRM in the 21stcentury.
The ten are; “respect for clients, use of appropriate medium ofcommunication, advocate for the privacy of your brand, understanding customerloyalty, embrace technology, and finally take customer needs above any otherconsideration” (Customer Relationship Management, 2011)2.3 Customer Perspective of CRMCRMdoes not just aim at storing customer information in the relevant data bases.It also aims at reducing the costs of acquiring new customers every now andthen by keeping the records so that customer retention and customer loyalty canfulfil their prime purpose to the bank which is to return as satisfiedcustomers.
A customer will always be connected to a CRM system whethersatisfied or not. Customer relations is the determiningfactor as to whether customers are being satisfied with the relationship theyhold with a specific bank and the services it provides. Customers view the CRMsystem as an electronic system that stores their information based on thetransactions and interactions they have had with the bank. With such a systemat hand, their perspective is that, the bank should be able to give customers aquick response to their queries, produce accurate and timely information, therelevant information as well as up-to date information on any assigned tasksand queries. Organisationsought to take the customers perspective seriously as this later brings about the loyalty or disloyalty ofcustomers.2.
5 Customer Satisfaction Customer satisfaction is one of the strengthsof a properly installed CRM relevant to the proposed study. When a customer’sexpectations have been met from the service provided, this entails a positiveimpact on customers and by this, satisfaction is attained. Customer satisfaction, then, is as a resultant of customerloyalty.Vavra (1997) has defined customer satisfaction as “a satisfactorypost-purchase experience with a service given an existing pre-purchaseexpectation,” (Kellen, 2002, p.
16). Theresultant effects of such a CRM system leads to customer satisfaction and possiblyretention by getting the right information about customers and using thisinformation were applicable. Satisfaction towards customers cannot be achievedovernight, it requires time and that is where relationship building comes in.For a customer to be satisfied, they need to be assured of a number of thingsby the bank such as; 1. Thebanks security2. Quickaccess to their monies3. Flexibleworking hours and good service quality2.5.
1 How CRM ImpactsCustomer Satisfaction. Customers havedifferent needs and good customer relations’ is a component of customersatisfaction. As described earlier, customer relations is using one on one conversationthrough mobile devices, fax, emails and many others. Careful interactions withthe customer must be taken seriously by employees. Data being extracted fromcustomer relations is stored on the CRM system and used to the organisationsadvantage and not used against customers.
By making a good judgement on how togo about satisfying customers at the right time using the right means, customersatisfaction can be attained through the CRM system and also through relationshipbuilding. CRM provides a superior opportunityto collect and use data and information to understand the customer and servethem better (M. Christopher, A.
Payne, & D Ballantyre, 2002).Quality services should be offered to customers in order for the organisationto attain satisfaction and possibly customer retention.3.
0 Chapter III –Methodology The research is carried out as acase study at Zanaco Bank’s West branch in Ndola. Bearing in mind that there ismore than one branch in the city of Ndola, only the West branch will beconsidered. The analysis being used in the proposed research is thequantitative method. One determining factor to the studybeing quantitative is the use of questionnaires and how they have been designed.
Data that will be collected will be numerically categorised and later gradedbased on the questionnaires presented. Coding of data will also be useddepending on the question hand.Theexplorative research for this study will determine the impact of CRM oncustomer satisfaction using a quantitative cross sectional study. 3.1 Population and Sample Size Thebank’s customers (Zanaco bank, West branch) make up what is known as thepopulation. Individuals and corporations holding different accounts withvarious age groups make up the bank’s population.
A sample size of up to 20customers will determine the research findings state conclusions. 3.2Research Design A survey will be undertaken using primarydata analysis of questionnaires. This will be done so to get accurate andconsistent data that will be relevant to the research. A nonresponse bias willbe undertaken where people may or may not choose to participate.
3.3 Data Collection and Analysis Primarydata will be collected through a questionnaire from a sample of 50 participants.Respondents will be the clients and the findings will be based on West branch andnot the other branches in the city. Since the research is exploratory, somelevel of statistics will be applied to analyse the data.