USING CUSTOMER RELATIONSHIP MANAGEMENT AS A STRATEGIC TOOL IN FINANCIAL INSTITUTIONS
ABSTRACT
Current trends in the global economy have resulted in widespread mistrust of financial insti-tutions. The purpose of this thesis is to determine how financial institutions, such as the National investment bank of Ghana are able to maintain lasting relationships with their customers, which is believed to be the main source of profit for most companies. A secondary objec-tive is to identify the services customers need at the present time in order for them to stay loyal to National Investment Bank Ghana. The main aim of customer relationship management is to build long-term relationships with customers, making customer relationship management a vital tool in today’s business environment.
The theoretical framework of thesis is based on theories of customer relationship man-agement, business-to-business marketing, key accounts management, marketing communica-tion, which are discussed in the literature review. Interview questionnaires were sent to management representatives of the bank to establish the methods being used to encourage customer commitment. Business-to-business customers were also interviewed to identify the services they need and expect from management. The research was done using a qualitative research approach.
The results showed that the management uses a number of strategies such as regular visits to customers, free financial advice, and long-term loans to keep and attract new customers to the bank. Although the customers interviewed were satisfied with most of the current ser-vices they received, they made suggestions, such as the introduction of master and visa cards, the opening of more branches, reduction in delays at the banking halls, and extra training to the front desk service providers. From the perspective of the interviewees, these changes would lead to greater customer satisfaction and encourage them to be regular customers of the national investment bank.
CHAPTER ONE
1.0 Introduction
Currently, there is fierce competition among businesses and financial institutions are no ex-ception. Competition is such that some companies are increasingly finding it difficult to dif-ferentiate their market offering from those of their competitors, causing duplication on the market and making such products lose their competitive edge.
In order to lead in the field of competition, some companies have now turned to the use of customer relationship management (CRM). Instead of focusing on market offerings, they con-centrate on creating satisfied customers and creating long lasting relationships.
According to Kotler et al (2009, 661), a satisfied customer would not only return to use ser-vices, but would also serve as a moving advertisement. This provides dual benefits for com-panies when they concentrate on customer relationship management.
However with the advancement in information technology, much information is available to customers, making them more demanding, as more information is available to them about market offerings. It has become difficult to manage customers with abundant information and knowledge about other market offerings from competitors.
According to Phelps (2009, 5) each customer is unique and hence there must be a special way of dealing with them in order to maximize profit. Customers in the initial stages of the rela-tionship are usually costly and expensive for companies: as long-term relationships are built with them, the more profitable they become for companies. (Phelps 2009, 26)
This research focuses on how the case company National Investment Bank acquires new cus-tomers and establishes long-term customer relationships. This is achieved through an analysis of the organizations internal customer acquisition strategy, by identifying the kinds of ser-vices customers need, and expect from the bank in order for it to be competitive among fi-nancial institutions in Ghana.
1.1 Research Background
As stated earlier competition is driving all organizations and institutions to manage their cus-tomers in a relationship way, and customer relationship management has become an issue in financial institutions. The financial institutions include, retail and corporate private invest-ment banks, personal and group pensions, mutual funds, investment funds, life insurance and general insurance, credit card issuers, stock exchange, brokers and agents, and specialist lending and leasing companies and many more who engage in the creation and delivery of financial service. (Cheverton et al. 2004, 4).
Financial service affects virtually all lives and the services they provide include current ac-counts, savings accounts, home loans, personal loans, general insurance, stock and shares, provision of credit and debit cards, mutual funds, life assurance, pensions and many more. (Cheverton et al. 2004, 6).
Financial institutions are distinguished by the services they provide; thus banking or insur-ance. However, in recent times single organisations operate both services as a result of the merger between most insurance companies and banks. This has brought a new system called „bancaassurance‟. According to Cheverton et al. (2004, 8), these mergers have increased thenumber of companies providing financial services. This has left management with the respon-sibility of keeping long relationships with customers and making them profitable in the future.
Traditionally, financial institutions are seen as product-centric organisations. They concen-trate on products and function centred approach rather than customer centric. However, in these modern times most organisations are moving to a customer- centric approach in order that they would have higher returns on their capital invested and to gain more profitable cus-tomers by building relationships with them. This thesis will address the question of how these financial institutions achieve this customer-centric approach and how they maintain long-lasting relationships with their customers.
At the time of independence in 1957, Ghana the home country of the case company (National Investment Bank) had only 3 banks, each with the basic responsibility of commercial banking, agricultural development banking, and development banking. The trend has changed; accord-ing to the Bank of Ghana, the country currently has 30 banks 135 rural banks, and 48 nonbank financial institutions. (Bank of Ghana, 2011).
1.2 Research Objectives
The objective of this research is to show the current nature of customer relationship man-agement in the case company, and also outline the expectations of customers from the case company's relationships managers. It also includes discovering, how the case company NIB keeps long lasting relationships with their business- to- business customers. Again, it seeks to unveil what services customers require that are not available to them at the moment in order to make the bank competitive with other giants in the market.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
Procedure for Downloading the PDF (Docx) Material
Using Customer Relationship Management as a Strategic Tool in Financial Institutions can be downloaded by requesting the full set of materials at the project or seminar cost. The document will be sent via Microsoft Word (MS-Word) format via WhatsApp (e-mail) following payment confirmation.
| Seminar Material Cost ₦3,000 | Project Material Cost ₦5,000 |
Request Complete Material
 | Click here to request the Complete Material via WhatsApp including;
|
TABLE OF CONTENTSPRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.0 Introduction
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Using Customer Relationship Management as a Strategic Tool in Financial Institutions" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
PRELIMINARY PAGES
- Title page
- Approval page
- Dedication
- Acknowledgement
- Table of Contents
- Abstract
INTRODUCTION
- 1.0 Introduction
- ⋮
LITERATURE REVIEW
- 2.1 Introduction
- 2.2 Conceptual Review
- 2.3 Theoretical Framework
- ⋮
- 2.4 Empirical Studies
- 2.5 Research Gaps
- 2.6 Summary of Literature Review
CHAPTER THREE
RESEARCH METHODOLOGY
- 3.1 Introduction
- 3.2 Research Design
- 3.3 Population of Study
- 3.4 Sampling and Sampling Technique
- 3.5 Validation of Research Instrument
- 3.6 Method of Data Collection
- 3.7 Method of Data Analysis
- 3.8 Questionnaire Administration
- 3.9 Ethical Consideration
- 3.10 Statistical Analysis
CHAPTER FOUR
DATA ANALYSIS, RESULT AND DISCUSSION
- 4.1 Introduction
- 4.2 Presentation and Analysis of Data
- 4.3 Re-statement of Research Questions
- 4.4 Test of Hypotheses
- 4.5 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
- 5.1 Introduction
- 5.2 Summary of Findings
- 5.3 Conclusion
- 5.4 Recommendation
- 5.5 Suggestion for Further Study
REFERENCES
APPENDIX A - “QUESTIONNAIRE”
Disclaimer for Complete Material Utilization
The displayed research work titled "Using Customer Relationship Management as a Strategic Tool in Financial Institutions" is stated as a research guideline towards accomplishing your assigned project / seminar research work. All the research materials on this website are ONLY for research purposes and should be used as a guideline in developing your research work. For no reason should you copy word for word as projectlist.com.ng will not be liable for any who copied the material. By ordering the complete research guideline, it signifies that you've accepted our terms of service.
Frequently Asked Questions (FAQ)
Is the topic “Patron - Client Politics and National Advancement in Nigeria” recommended for Political Science Project?
Yes it is highly recommended — The research provides an appraisal of patron-client politics and national development in Nigeria. It provides both a conceptual and theoretical appraisal of patron client politics and national development. …
Can this topic “Entrepreneurial Opportunities in the Production of Building Materials” be used for Business Administration and Management (BAM) Project?
Yes it can be utilized for research — An aspect of an operational nation building would be a country that has a sustainable construction industry whereby it is self-sufficient in the production of its building materials, but that is not the case. The aim of this study was to assess the entrepreneurial opportunities in the production of Building materials. A literature review approach and desk study using secondary data of net income (Profit after tax) during the period 2010 – 2014 of eight (8) building materials companies, publicly listed on the Nigerian Stock Exchange (NSE) were used for the study. From the study, it is evident that there are entrepreneurial prospects in the Housing and infrastructural needs, Maintenance and repairs, need for quality building materials to avoid Building …
Is the topic “Causes and Effect of Children Lateness to School” recommended for Education Project?
Yes it is highly recommended — This study was designed to find out those factors that are responsible for pupils lateness to school in our primary school system. To carryout the study, four schools in Ovia South West Local Government Area were selected for the study. The school include Ozolua model primary school, Iguobazuwa, Ezoti primary school, Udo, Okpon primary school, Obaretin, Okomu primary school, Okomu were they are pronounced lateness of pupils to school. …
Can the material for “The Effects of Teachers’ Qualification on Students’ Performance in Biology in Senior Secondary Schools in Calabar Metropolis” be used as a guide for Education Project?
Yes it can be used — The study was carried out to investigate the Effects of Teachers’ Qualification on Students’ Performance in Biology in Senior Secondary Schools in Calabar Metropolis. In achieving this aim, the following objectives were set out to investigate the Effects of Teachers’ Qualification on Students’ Performance in Biology and promote students’ performance in science. Investigation revealed that the poor academic achievement of students in Biology as indicated in the report of West Africa Examination Council (WAEC) and National Teachers Institute (NTI) has become a persisted public outcry. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 133 (one hundred and thirty three) respondents were selected for …
Is the topic “Problems Faced by Integrated Science Teachers in Teaching of Integrated Science in Public Junior Secondary Schools” recommended for Integrated Science Project?
Yes it is highly recommended — The study was carried out to investigate the Problems Faced by Integrated Science Teachers in Teaching of Integrated Science in Public Junior Secondary Schools. In achieving this aim, the following specific objectives were laid out to examine the effect of poor laboratory and adequate training of teachers on the study of integrated science and investigate the factors affecting teacher’s performance in teaching of integrated science in junior secondary schools in Ogun State. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 200 (two hundred) respondents were selected for this study to represent the entire population of the study. For null hypotheses were formulated and …
Can the material for “Sea Piracy and Security Challenge of Maritime Operation in Bayelsa State” be used as a guide for Maritime and Transport Project?
Yes it can be used — Sea Piracy without a doubt is one of the most challenging factors that have bedeviled sea transportation along water ways. The study was conducted to investigate the Sea Piracy and Security Challenge of Maritime Operation in Bayelsa State. In achieving this aim, the following specific objectives were laid out to investigate whether sea piracy poses security threat to Maritime business operation and examine whether sea piracy affects fishing business in Bayelsa State Territorial Waters. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. A total of 80 (eighty) respondents were selected for this study to represent the entire population of the study. For null hypotheses were formulated …
Can the material for “Public Relation and It’s Impact in the Banking Industry” be used as a guide for Banking and Finance (BF) Project?
Yes it can be used — The study based on public relation and it’s impact in the banking industry (a case study of GTbank Kaduna branch). The study adopted survey research method using questionnaire as the instrument for gathering data. In writing this project, the research begin with a general introduction of the subject matter, statement of the general problem, as related to the organization rationale or objectives of the study, the scope of the study, limitations of the study and definition of terms. Review of related literature of the scholars are also highlighted in notable areas. Other areas of interested study include the methodology of the entire research work, this include methods or approaches used, instrument used, research population and sample size, sampling procedure employed, …
Can the material for “Impact of Teachers Educational Qualification on the Performance of Secondary School Students in Economics” be used as a guide for Education Project?
Yes it can be used — This study examined the impact of teacher’s educational qualification on the performance of senior secondary school students in economics in a sample of Yaba local Government area of Lagos State. In this study five question and two hypotheses were develop frequency comp and percentages was used to analysed the table, the result from the analysis shows, that teacher qualities has strong influence in academic achievement of senior secondary students, significant relationship exist between teachers years of experience students academic performance is economic and it was recommend that there is need for quality planning quality assurance mechanism needs to be implemented for continuous monitoring of each public secondary school among others …
Can this topic “The Role of Local Government in the Transformation of Rural Areas” be used for Public Administration (PA) Project?
Yes it can be utilized for research — This research work is poised to look into ‘’The Role of Local Government in the Transformation of Rural Areas (A case study of Ofu Local Government Area’’ The research work is divided into five chapters with each chapter linking each other. The objectives of the research work among others include to highlight, analyze and evaluate the significance of local government administration to the transformation of rural areas. Two methods of data collection were used i.e. The primary and secondary sources of data and the data was analyzed using simple percentage method for easy understanding. The findings revealed that the quality of councilors who were supposed to be the nearest elected officers to the people are very poor and do not …
Can the material for “The Effects Bureaucracy on Productivity and Efficiency in the Service Delivery of the Ministry of Education, Oyo State, Nigeria” be used as a guide for Public Administration (PA) Project?
Yes it can be used — This study was carried out on the effect of bureaucracy on productivity and efficiency in the service delivery of the ministry of education, Oyo state, Nigeria. Businesses have rapidly sprang up over the last ten years, thereby bringing pressure on the few and available social amenities, as well as public service provided by the Ministry of Education, Oyo state (MOE). MOE is the local administrative authority mandated to provide services for accelerated development and does this through bureaucratic procedures outlined by Max Weber. However, its bureaucratic machineries rather than fuelling development programmes through public service delivery is said to have hindered the growth expected due to excessive bureaucratization of business processes, coupled with corruption. This study was therefore to, identify bureaucratic …