Effect of Customer Relationship Management on Marketing Performance of Commercial Banks in Kenya

Abstract

The general objective of the study was to establish the effect of customer relationship management on marketing performance of commercial banks in Kenya. The specific objective of the study was to examine the effect of customer orientation strategies on marketing performance of commercial banks in Kenya, to assess the effect of service quality management on marketing performance of commercial banks in Kenya, to determine the effect of customer relationship marketing strategies on marketing performance of commercial banks in Kenya and to establish the effect of customer retention strategies on marketing performance of commercial banks in Kenya. Chapter two covered a review of literature on the effect of customer relationship management on marketing performance of commercial banks in Kenya. In specific the chapter discussed the effect of customer orientation strategies on marketing performance of commercial banks in Kenya, effect of service quality management on marketing performance of commercial banks in Kenya, effect of customer relationship marketing strategies on marketing performance of commercial banks in Kenya, effect of customer retention strategies on marketing performance of commercial banks in Kenya and chapter summary. The study adopted descriptive research design. The study targeted employees in the sales and marketing department of 43 commercial banks in Kenya. Purposive sampling technique was used to select 2 senior employees from each organization and a total of 86 respondents. Data was collected using a survey questionnaire for respondent from each commercial bank. This study used both quantitative and qualitative method of data analysis. Data was analyzed using Statistical Package for Social Sciences (SPSS). The data was presented using tables and figures. Multiple regression analysis was used to establish the relationship between the study variables. The study found a significant relationship between marketing performance by banks and customer orientation strategies. The study established that customer orientation strategies would lead to an increase in marketing performance in bank. The study found a significant relationship between marketing performance by banks and service quality management. The study revealed that service quality management would lead to an increase in marketing performance in bank. The study found a significant relationship between marketing performance by banks and customer relationship strategies. The study found that customer relationship strategies would lead to an increase in marketing performance in bank. The study found a significant relationship between marketing performance by banks and customer retention strategies. The study established that customer retention strategies would lead to an increase in marketing performance in bank. The study concludes that service quality management would lead to an increase in marketing performance in bank, customer relationship strategies would lead to an increase in marketing performance in bank, customer retention strategies would lead to an increase in marketing performance in bank and customer orientation strategies would lead to an increase in marketing performance in bank. The study recommends that the organization should put in place the customer orientation strategies, this is important because it provides the customers knowledge about organization activities. When the customers are educated on organization services they will be able to easily and conveniently access bank services. Hence this will help to improve marketing performance. The organization management should ensure service quality management in the organization. This will ensure that the best services are provided so as to remain competitive. It is also important because it will ensure that services provided meet customer needs, hence will help improve the organization customer base and marketing performance. Organizations should incorporate customer relationship marketing strategies in their organization. This will ensure that the customer needs are met and also the customer complaints are looked into and solved. The organization will also be able to get suggestions on customers on what they would like to be improved. This ensures that the organization provides better customer services hence improving marketing performance. The organization should incorporate customer retention strategies. This will help the organization know its frequent customers and also give them bonuses. The organization will be in a better position to meet its customer needs because they’re able to interact well with them. The customers will be able to freely give opinion in organization decisions about the company products; this will ensure that products and services provided meet the customer needs. Hence improving marketing performance.