For database that can be accessed at any

For
every bank to succeed, customers play an important role. Customers in today’s
world hold the keys to influencing the banking industry on improving their
relationships with any bank and this may lead to customer satisfaction and
possibly customer retention. In the
banking industry, attaining success towards providing quality services to
customers has been an issue of interest to most banking institutions. In
computer applications in management it was communicated that computer systems
are a combination of various systems and so with banks many computer applied
systems are created to cutter for the customer service provisions and marketing
strategies are also utilised for the same to gain a share in the competitive
environment.

To understand what CRM means, Vince defines CRM as, “a business
strategy that is aimed at gaining long-term competitive advantage by optimally extracting
business value and delivering customer value simultaneously” (Kellen, 2002,
p. 4). The
implementation of a CRM system is actually a marketing strategy which also
makes bankers in the industry realize that their prime business purpose is to
“create and keep a customer” and to “view business processes consisting
of tightly integrated efforts to discover, create, and satisfy customer
needs” (Sharmila, 2014, p. 2).

However,
it is of much importance to take note that implementing a CRM system is not as
easy as one may think. There are challenges pertaining to the implementation
and that is where strategic planning and marketing management comes in because
marketers need to segment the market and select the appropriate market in order
to develop the offerings value positioning.

1.3 Objectives

            The
impact of a CRM system on any business is cardinal, CRM enables banks to have
higher level of rank in the banking industry as it provides them with customer
information stored in a database that can be accessed at any time in the
working environment. The research objectives are as following:

1.      Define
CRM and state its significance to the stated bank

2.      Explore
the Customers perspective of CRM

3.      Explore
how Customer Satisfaction is impacted by CRM

4.      Linking
Customer Satisfaction and Customer Retention

5.      To
recommend the significance of CRM in organisations which may lead to customer
satisfaction

1.4 Significance of the Study

The
significance of this study is to explore CRM bearing in mind the consolidated
three courses namely; Computer applications in management, marketing management
as well as Strategic management and ascertain its impact on customers’
satisfaction in an institution like the Zanaco bank’s West branch of Ndola. The
bank already has an implemented CRM system which has been working to their
benefit that keeps customer information which is used when giving bank loans to
customers, bonds, and also states the accounts customers hold. Decision making is
also essential with such information at hand as this helps the bank make the
necessary decisions on customers and the bank itself. CRM will be outlined,
stating how influential it is on customer satisfaction and possibly retention
and with a well implemented system, the research will state the customers’
perspective as to how it helps improve the value of the organisation for the
satisfaction of customers.

 

2.0 Chapter II – Main Content

The
second chapter of this research demonstrates the literature review.  The significance of the study will be
outlined in this chapter. The customer’s perspective of CRM is the main focus
but, information about the Zanaco bank and why most banks use a CRM system will
also be stated. The review is only limited to the customers perspective on the
impact of CRM on customer satisfaction and possibly retention at Zanaco bank.

2.1 Zanaco Bank’s West branch of
Ndola

Zambia National Commercial Bank, commonly referred to by the name
“Zanaco”, is a commercial
bank in Zambia. The bank was
founded in 1969 by the government of Zambia and its headquarters lie in Lusaka,
Zambia. With a sore purpose of delivering financial services to the customers
of Zambia, its main products are loans, savings, debit cards, and investments (Wikipedia, 2014). The bank is a
strong retail franchise with relatively new corporate and some treasury
capabilities. It happens to be the largest bank in Zambia with 64 branches and
agencies spread across the nation. Having created an employment rating of over
1, 300 employees and a large customer base of about 750, 000, it is for this
reason why the bank was recognized as the best bank in Zambia for 2 years. As it
stands, it is required by law that every bank should have a CRM system
installed in the designated bank.

2.2 Customer Relationship
Management

Hence
forth, CRM can defined as “a broad approach for creating, maintaining and
expanding customer relationships usually aimed at understanding, anticipating,
managing and personalizing the needs of customers, both current and potential
customers” (Hao, 2013, p. 33).

In
most cases, the implementation of CRM measurement by most companies is usually
different depending on their internal decision making styles. It is these
decision making styles that enforce companies to make decisions about customer
strategies which help influence the decision making process or the specific
decision makers or validate initial ideas about how to manage customer
relationships (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 on
the value of those customers. If the CRM system works as hoped, the significance
of the system can help the business to:

1.     
Improve on customer service and make
call centres more efficient

2.     
Easy to strategize on how to
store and capture more data on customers

3.     
Improve employee customer
relations

4.     
Discover new customers (Shahzeb
Ali Malik & Trevor Wood-Harper, n.d., p. 314).

In order to achieve a successful
CRM initiative, its three key elements are; People, Process, and Technology. The people involved in the CRM
initiative range from the branch manager to the very least person in the bank.
Processes involve activities that can be implemented to serve customers better and
this includes marketing strategies such as holistic marketing to deliver a high
level of service quality.

With technology, systems and
application software has to be utilised of which the right technology needs to
be selected for customer needs to be driven by the companies (improved) CRM
processes, real-time provisions, holistic information to employees, and to
easily operate for quick adoption. “If one of these three foundations is not
sound, the entire CRM structure will crumble” (Successful CRM, 2013).

Good
customer relationship managers strive to create meaningful conversations with
their customers by asking concrete and meaningful questions that will help
bring both parties to an understanding. When customers respond to questions in
an honest manner, relationship building takes place with trust as one of its
prime aspects.

Before
the implementation of CRM, most banks used to experience difficulties in
handling customer relations and it became clear that their current processes
back then experienced bad customer service inquiries and tracking sales leads
due insufficient information on customers by the bank. Complaints were
escalating from diverse customers holding different accounts from all over, and
managers needed better tools to track and report data based on the customers
banking habits. Henceforth, the implementation of a CRM system has helped the
banking industry’s proactivity in sales and customer activities, thanks to the accumulated
business intelligence capabilities in CRM (Taylor, 2011). Rosenfield, (2012)
came up with what he called the 10 commandments driving CRM in the 21st
century. The ten are; “respect for clients, use of appropriate medium of
communication, advocate for the privacy of your brand, understanding customer
loyalty, embrace technology, and finally take customer needs above any other
consideration” (Customer Relationship Management,
2011)

2.3 Customer Perspective of CRM

CRM
does 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 and
then by keeping the records so that customer retention and customer loyalty can
fulfil their prime purpose to the bank which is to return as satisfied
customers. A customer will always be connected to a CRM system whether
satisfied or not. 

            Customer relations is the determining
factor as to whether customers are being satisfied with the relationship they
hold with a specific bank and the services it provides. Customers view the CRM
system as an electronic system that stores their information based on the
transactions and interactions they have had with the bank. With such a system
at hand, their perspective is that, the bank should be able to give customers a
quick response to their queries, produce accurate and timely information, the
relevant information as well as up-to date information on any assigned tasks
and queries.

Organisations
ought to take the customers perspective seriously as this later brings about the loyalty or disloyalty of
customers.

2.5 Customer Satisfaction

             Customer satisfaction is one of the strengths
of a properly installed CRM relevant to the proposed study. When a customer’s
expectations have been met from the service provided, this entails a positive
impact on customers and by this, satisfaction is attained. Customer satisfaction, then, is as a resultant of customer
loyalty.

Vavra (1997) has defined customer satisfaction as “a satisfactory
post-purchase experience with a service given an existing pre-purchase
expectation,” (Kellen, 2002, p. 16). The
resultant effects of such a CRM system leads to customer satisfaction and possibly
retention by getting the right information about customers and using this
information were applicable. Satisfaction towards customers cannot be achieved
overnight, 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 things
by the bank such as;

1.      The
banks security

2.      Quick
access to their monies

3.      Flexible
working hours and good service quality

2.5.1 How CRM Impacts
Customer Satisfaction. Customers have
different needs and good customer relations’ is a component of customer
satisfaction. As described earlier, customer relations is using one on one conversation
through mobile devices, fax, emails and many others. Careful interactions with
the customer must be taken seriously by employees. Data being extracted from
customer relations is stored on the CRM system and used to the organisations
advantage and not used against customers. By making a good judgement on how to
go about satisfying customers at the right time using the right means, customer
satisfaction can be attained through the CRM system and also through relationship
building.

            CRM provides a superior opportunity
to collect and use data and information to understand the customer and serve
them better (M. Christopher, A. Payne, & D
Ballantyre, 2002).
Quality services should be offered to customers in order for the organisation
to attain satisfaction and possibly customer retention.

3.0 Chapter III –
Methodology

            The research is carried out as a
case study at Zanaco Bank’s West branch in Ndola. Bearing in mind that there is
more than one branch in the city of Ndola, only the West branch will be
considered. The analysis being used in the proposed research is the
quantitative method.

            One determining factor to the study
being quantitative is the use of questionnaires and how they have been designed.
Data that will be collected will be numerically categorised and later graded
based on the questionnaires presented. Coding of data will also be used
depending on the question hand.

The
explorative research for this study will determine the impact of CRM on
customer satisfaction using a quantitative cross sectional study.

3.1 Population and Sample Size

            The
bank’s customers (Zanaco bank, West branch) make up what is known as the
population. Individuals and corporations holding different accounts with
various age groups make up the bank’s population. A sample size of up to 20
customers will determine the research findings state conclusions.

            3.2
Research Design

            A survey will be undertaken using primary
data analysis of questionnaires. This will be done so to get accurate and
consistent data that will be relevant to the research. A nonresponse bias will
be undertaken where people may or may not choose to participate.

3.3 Data Collection and Analysis

            Primary
data 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 and
not the other branches in the city. Since the research is exploratory, some
level of statistics will be applied to analyse the data.