THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ON CUSTOMER SATISFACTION

THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ON CUSTOMER SATISFACTION

Abstract

The primary objective of this study was to investigate the impact of customer relationship management on customer satisfaction at three commercial banks in Lagos State, Nigeria. This study explored how customer satisfaction can be achieved using customer relationship management. A descriptive survey study design was employed in this study. Data for the survey were collected through well-designed and structured questionnaires. Respondents were given 208 questionnaires, of which 197 were answered and returned. This study used both descriptive and inferential statistics to analyze the data obtained from the questionnaire. This study was guided by four research questions and hypotheses. Findings of this study included customer engagement and engagement’s positive and significant impact on customer satisfaction, and customer service’s positive and significant impact on customer satisfaction. The study recommends that effective customer relationship management is a reliable tool for increasing customer satisfaction. Therefore, commercial banks in Nigeria must ensure customer satisfaction at all times. Bank management should always seek the opinions of customers before making decisions that are binding on them. The study concluded that there is a direct correlation between customer relationship management and bank customer satisfaction. Our management is therefore encouraged to implement a rigorous customer relationship management program to survive in the current competitive business environment.

chapter One

Foreword
1.1 Research background

Customers are important and should drive a company’s success, and a deal that takes customer interests into account is a good deal (Mithas, Krishnan, & Fornell, 2005). With this in mind, customer satisfaction is very important and an issue that needs to be addressed. Customer satisfaction can be weighted based on individual customer interests, but sampling different customer interests gives estimates of average customer value and average customer satisfaction.

Concepts that later evolved into full-fledged working systems, such as Customer Relationship Management (CRM) systems made up of people such as business marketers, account managers, liaison officers and managers, processes and technologies working together towards a common goal. Dedicated to meeting customer needs and improving satisfaction (Chen, 1997). It is clear that customer reaction to such systems is controversial.
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(Zainurrafiqi, Sukoharsono, & Hamid, 2012), the direct and indirect impact of customer relationship management (CRM) on customer satisfaction varies. An analysis of customer perceptions, benefits, and resulting effects forms the motivation for this research work. The ability to examine customer value assessments reveals more insight into customer satisfaction and allows value to be determined through a proper examination of the business market that can be represented in strategies related to customer relationship management (CRM). (Anderson, Jain, & Chitanguata, 1992).

Commercial banks in Nigeria feature this form of customer appreciation through advertising, digital marketing, social media presence, customer engagement, and other customer-centric business strategies. Common methods revolve around support services and channels that drive customer engagement. These methods have allowed companies to become solution-oriented and focus on their customers’ needs. There is a healthy customer relationship management (CRM) race among these banks, but the question is how effective is that approach?

Customer engagement has been studied in more than 259 of his companies, and empirical results show it influences innovation in customer service (Ngo & O’Cass, 2013). This shows that there is a relationship between customer engagement and customer service, including customer service. Although these two variants are strongly related, the variables are the same, so we intend to measure the results of each and compare their effectiveness in terms of customer satisfaction. Incentives are also known to be one of the best methods for positive reinforcement and behavior reengineering (Robinson & Berridge, 2001). Customer behavior can be attributed to current emotions such as anger, happiness (Grandey, Dicter, Sin & Sin, 2004). Incentives, on the other hand, create a bridge that decouples possible consequent behavior from the current emotional state. Beyond customer satisfaction, a range of innovative service incentives can be used to win back dissatisfied customers (Griffin & Lowenstein, 2001). In short, to study the impact of customer relationship management (CRM) on customer satisfaction, we must also look at ways to reverse customer dissatisfaction and its impact in order to better understand it.

Part of the mechanism for implementing the use of incentives is to account for customer engagement and customer participation. The integration of incentive-based marketing strategies with customer participation enables customers to understand the value of products and take advantage of opportunities to contribute to business activities.

There is a close relationship between these concepts in Customer Relationship Management (CRM).
Customer Engagement and Participation. customer service; incentives; This forms the basis of this project and motivates us to reduce the dependent variables of customer engagement, support services, incentives and their impact on customer satisfaction. At the end of the project, an empirical value for each variable is determined, from which conclusions are drawn, considering a sampling of customer opinions from three different Nigerian banks.

1.2 Problem Description

Research on the effect of customer relationship management (CRM) on customer satisfaction has been conducted for a long time (Zainurrafiqi, Sukoharsono, & Hamid, 2012). From lack of trust to partnerships, empowerment, and more, there have been various operational variables to measure customer relationship management (CRM). The problem of modern Customer Relationship Management (CRM) goes from simply examining the customer’s attitude and mentality to the services provided by companies developed in relation to Customer Relationship Management (CRM). Since this type of research is at the forefront of current customer relationship management (CRM) issues, a key concern is how effective incentives, support services, and customer engagement are for customer satisfaction. That’s what it means.

1.3 Purpose of the survey

The main purpose of this project is to examine the impact of customer relationship management (CRM) on customer satisfaction. Specific goals are:

Me. Explore the impact of customer engagement and participation on customer satisfaction.

ii. determine the impact of customer service on customer satisfaction; iii. Determining the effectiveness of incentives on customer satisfaction.

IV. Determination of Combined Effects of CRM Factors on CS

1.4 Research question

The research questions for the project study are as follows.

Me. How does customer engagement and participation affect customer satisfaction? ii. What is the impact of customer care services on customer satisfaction?

iii. Do customer incentives affect customer satisfaction?

IV. Does connecting CRM elements affect CS?

1.5 Research hypothesis

The hypotheses developed for this project are:

Hypothesis 1

H0:
Customer engagement and participation do not have a significant impact on customer satisfaction.

H1:
Customer engagement and participation have a significant impact on customer satisfaction.

Hypothesis 2

H0:
Customer service has no significant impact on customer satisfaction.

H1:
Customer service has a huge impact on customer satisfaction. Hypothesis 3

H0:
Incentives do not have a significant impact on customer satisfaction.

H1:
Incentives have a big impact on customer satisfaction.

Hypothesis 4

H0:
The connection of CRM elements has a great impact on CS.

H1:
Connectivity of CRM elements does not have a significant impact on CS.

1.6 Importance of research

The conclusions of this project will help businesses understand the impact of customer relationship management on customer satisfaction. In addition, this project proposal will help companies to strategize or possibly modify the customer relationship management approach they use.

It’s also important that your customers rate and satisfy you with recommendations that drive customer relationship management.

In addition, employees and those involved in customer relationship management systems can better understand customer satisfaction needs and provide sustainable solutions.

1.7 Scope of investigation

Her three banks in Nigeria are covered by the project.
Wemma, Zenith, and the United Bank of Africa (UBA). Observations show that these banks have a functioning customer relationship management (CRM) system. Customer engagement and support services are also a priority for these banks. Considering this condition, these banks are best suited for research, contributing to the fact that the banks are in close proximity to where the research takes place. This project does not extend research to other customer.

Y represents Customer Satisfaction (CS)

X represents Customer Relationship Management (CRM)

The mathematical model can therefore be expressed as:
CS=f (CRM)

Where:

Customer Satisfaction =f (Customer Relationship Management)

Y*= (y1,y2,y3)

y1=Customer repurchase behavior (CRB)

y2=Expectation from product (CP)

y3=Loyalty (LT)

However, we are considering 3 variables on Customer Relationship Management (CRM) which are:

X1= Customer Involvement and Participation (CIP)

X2= Customer Support Services (CSS)

X3= Incentives (IN)

So therefore:

CS= f(CIP)….obj1

CS = f (CSS)….obj2

CS= f(IN)….obj…..3

CS=f(CIP, CSS, IN)…combined effect of CRM elements on CS….obj 4

1.9 DEFINITION OF TERMS

Customer:
This is a person who patronizes a business or shop, buying its products and possibly engaging in further dealings.

Customer Satisfaction (CS):
This relates to the measure in which customer’s expectation of a business product is realized or surpassed.

Customer Relationship Management (CRM):
It is a concept that explains the various technologies, processes, strategies and people involved in maintaining a relational framework for the customer over a specified duration.

Customer Support Services (CSS):
This is a Customer Relationship Management (CRM) technique that caters for the effective use of business products sold to customers.

Customer Involvement (CI)):
It is an aspect and also an extended form of Customer Relationship Management (CRM) that engages the customers in contributing to business success through suggestions, participations, marketing etc. Incentive (IN):
It is an additional service or privilege granted by a company to a customer, usually in the form of a promise and usually subject to special efforts by the customer. It is done to encourage and motivate customers.

Customer repurchase behavior (CRB):
This is a real consumer behavior of purchasing the same product or service multiple times.

Product Expectations (CP):
Customer satisfaction reflects a customer’s expectations and experience with a product or service. Consumer expectations reflect both past and present product ratings and user experiences. Loyalty (LT):
Customer loyalty is both the attitude and behavioral tendency of him to prefer one brand over another for reasons such as product or service satisfaction, convenience or performance, or simply brand familiarity or comfort. is.