The Effect Of Customer Relationship Marketing On Customer Loyalty Case Study Of Commercial Banks In Nekemte Town

Research Paper (undergraduate) from the year 2021 in the subject Business economics - Market research, grade: 90.5, Wollega University, course: Thesis, language: English, abstract: The general objective of this study, which got submitted as partial fulfillment to the requirement of the award of Master of Art, is to examine the effect of customer relationship marketing on customer loyalty of commercial banks in Ethiopia. Specifically, this study has the following objectives: To find out the level of the effect of trust on customer loyalty the case of commercial banks in Nekemte banks. Banking industry in Ethiopia has stiff competition thus banks need to consider various strategic options and programs in order to survive and thrive. One of strategy is Customer Relationship Marketing. This study was aimed to examine the effect of customer relationship marketing dimensions (trust, commitment, conflict handling, communication, empathy competence and customer satisfaction) on customer loyalty of commercial banks in Nekemte town. The researcher was used both probability and non-probability sampling techniques to select sample respondents from the total population under this study. Data were collected through the five point’s likert scales of questionnaires and used mixed research approach was used. To achieve the objective of the study, questionnaire was physically distributed to 404 respondents of selected Commercial Banks in Nekemte town. Out of 404 customers 375 92.8% of customers were completed and collected. Descriptive and inferential statistics were used to analyze the collected data by using SPSS software version 24 and questionnaires reliability was estimated by calculating Cronbach’s Alpha. Descriptive analysis tools such as frequency, percentage, mean and standard deviation. Inferential statistical analysis tools such as correlation coefficient was worked out and used to explore the relationships between variables. And regression analysis was performed to study the effect of independent variables on dependent variable.

In this book, Customer Relationship Marketing (CRM) Practices in commercial banks are examined. The variables relationships were established through case study research design using Energy Bank Ghana Limited. The findings in this book show that each variable was found to be effective in determining customers' relationship marketing. The most widely adopted CRM practice in commercial banks was conflict handling followed by Reliability, Communication, Service quality, Empathy, Trust, Customer relations, Commitment, Staff Competence. Responsiveness is the least adopted practice. In this book the impact of customer relationship marketing on customer satisfaction was also investigated. Analysis revealed that, the strength of the general effect of staff commitment on customer satisfaction justified by the chi square test was positive and of high association. The book is highly recommended to Commercial banks, policy makers, stakeholders and academia.

Research Paper (postgraduate) from the year 2014 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: B, ( Atlantic International University ) (School of Business and Economics), course: Ph.D. Economics, language: English, abstract: The main aim of this study has been to identify the possible causes of customer dissatisfaction. The specific objectives of the study were examined , the degree of cordiality and adversity of the relationship between management and staff and how these influence positively or negatively customer relations of banking organizations, a case study of Sahel Sahara Bank. The study is to assist the management of banking organization towards ensuring improved customer relations by offering incentives, customers’ relations training for employees and organizing seminars and workshops to raise employees’ level of professionalism. The researcher employed the quota sampling technique to specifically make a selection of the groups of management, staff, customers and other users of the Bank to whom questionnaires were administered until the required numbers of respondents were reached. In all, sixty (60) questionnaires were distributed. Out of these, ten (10) were administered to the management of the bank, twenty (20) to its employees and thirty (30) to customers who had visited to transact business at the bank’s premises on those faithful days of questionnaires administration. The study revealed that management and customers to the Bank asserted that customer relation training were the best tool for building customer relations to provide the needed skills for quality service delivery. Employees were also of the opinion that monetary incentive or rewards though important might not do much in improving customer relations but rather receiving customer relations training would equipped them better. There is therefore the need for management of banking organizations particularly the Sahel Sahara Bank to integrate their roles and efforts towards the facilitation of the customer relations training since employees as well as customer to the Bank rated it as the most workable measure.

Due to the fierce competitive environment in the banking industry, several service providers implement marketing tactics to compete in order to achieve customer loyalty. Particularly, Islamic banks around the world are struggled to compete against conventional in terms of marketing activities development and gaining customer loyalty. Relationship marketing tactics such as price, service quality, communication, customization and reputation considered as the tools that marketers can use to enhance trust and commitment and subsequently customer loyalty. This study investigates the impact of relationship marketing tactics, trust and commitment on customer loyalty in Algerian Islamic banks. Data were collected through self-administered questionnaires delivered to 308 customers of two leading Islamic banks in Algeria. Data were analyzed using Structural Equation Modeling through Smart PLS. The results found that only communication and customization are related to trust, and reputation positively related to commitment. Communication and service quality significantly predicted customer loyalty. In addition, the results provided a substantial support that trust and commitment acts partially as the mediators on the relationship between relationship marketing tactics and customer loyalty. Findings also have contributed to new knowledge of evaluating a model of relationship marketing tactics with the role of trust and commitment on loyalty. Finally, it would be useful to examine more variables; future research can include different tactics such as reciprocity, tangible rewards, direct contact, value proposition, and customer satisfaction as well.

Customer Satisfaction and Customer Loyalty are main topics each every business operates now days. In order to survive and further advance in a fast technological and dynamic environment special attention should be paid to the customer as well as to human resources. Currently in Albania, the banking branch of the financial system is one of the most accomplished sectors with regard to the adaption of contemporary marketing practices. This branch grew at a fast dynamic pace from the initial efforts days to establish the Central Bank until the later days, when a well-defined program of further developing this system exists. The most dynamic period, offering a wide variety of developments and opportunities started in 1992, and it coincides with the first and most important financial and monetary reforms, Albania's memberships in International Monetary Fund and World Bank, the 1997 pyramidal schemes turmoil, and the denationalization of banks. The main objective of this book is measuring customer loyalty in Albanian commercial banks. It should be noticed that the research is focused on Elbasan alone (a city located in central Albania)in order to identify factors that impact loyalty.

Master's Thesis from the year 2016 in the subject Business economics - General, grade: 6.3, , language: English, abstract: This study analyses the effect of service quality dimensions on customers’ patronage of selected banks in Ogun State, Nigeria. It investigates the relationship between service quality dimensions and customers’ patronage using Bank Service Quality model dimensions. It also determines factors responsible for customers staying on queue for longer periods of time while awaiting bank services, assesses the level of customer satisfaction about services rendered by money deposit banks with a view of identifying factors that were responsible for customer disloyalty in patronising banks. The study employed Simple random sampling to select six banks namely First Bank Plc, United Bank of Africa Plc, Guarantee Trust Bank Plc ,Access Bank, First City Monument Bank and Zenith Bank Plc for this study. Convenience sampling method was used to select 240 customers of the selected banks. The data were analysed through the use of Statistical Package for Social Science (SPSS), while Pearson’s correlation co-efficient and multiple regression analysis were used to test the hypotheses formulated whether significant relationship exist between service quality dimensions and customers’ patronage.

Achieving and sustaining growth in banking business is a herculean task, but it can be successfully done, if the focus is on customers. With hot winds of competition blowing across the banking industry in India, developing an emotionally close, symbiotic relationship with customers has become highly important than ever before. Any bank that wishes to grow in the size of its business or improve its profitability must consider the challenges surrounding its customer relationships (Watson, 2004)2. Banks now have realized that, of all the problems the business can have, the loss of established customers is one of the most serious. Hence, banks have come out with innovative measures to satisfy their present customers, acquire new ones, and at the same time adopt procedures to win back the lost customers. Customers’ expectations regarding quality, service and value are ever escalating, and hence, a banker can build good relationship with its customers only if it is able to understand their needs and desires. Customer relationship management philosophy, if properly implemented, will enable the banker to develop long-lasting relationship by developing trust and emotional bonding through personalized communication, sharing of values and goals and personalized communication.