Customer satisfaction is a dynamic parameter for measuring business success. As a
modern measure for service quality, it ensures investment in development of customer
centred management strategies such as Customer Relationship Management (CRM).
Globally, CRM has been applied in the banking sector to enhance service quality and the
resultant customer satisfaction which increases competitiveness, customer retention and
profitability. Despite implementation of CRM programmes by commercial banks to
increase satisfaction of account holders, customers continue to be dissatisfied with
banking services. This study aimed at establishing the effect of CRM on satisfaction of
commercial banks‟ account holders in Nairobi City County in Kenya. The specific
objectives of the study were to establish the effect of value based CRM, customer centred
organizational configuration and technology based CRM on satisfaction of commercial
banks' account holders and to assess the moderating effect of demographic characteristics
and mediating effect of service quality on the relationship between CRM and satisfaction
of commercial banks account holders. The study was anchored on CRM theory and was
guided by positivism philosophy. It utilized a cross-sectional research design involving
descriptive and explanatory research techniques. The target population was 34,649,583
account holders from commercial banks in Kenya. A sample of 400 respondents was
selected using mixed sampling techniques. Primary data was collected using a 5 point
likert scale using both open and closed-ended questionnaire guided by the researcher.
Reliability of the research instrument was determined by conducting a pilot test which
yielded Cronbach‟s Alpha coefficient of 0.9. Construct validity was determined by use of
confirmatory factor analysis while content and face validity was done by experts.
Quantitative data was analyzed using both descriptive and inferential statistics and
qualitative data was analyzed through content analysis with the aid of SPSS version 19.
Descriptive statistics such as mean, frequency distribution and standard deviation were
used to describe the characteristics of the variables. Diagnostic tests for normality,
outliers, linearity, multicolinearity and homogeneity of variance were carried out to ensure
multiple linear regression assumptions were met. Simple linear and multiple linear
regression were conducted to assess the relationships between independent, mediating,
moderating and dependent variables. The hypotheses were tested using a P-value <0.05 to
assess statistical significance while value of adjusted R2 measured amount of variation in
customer satisfaction that was explained by CRM variables. The relationship between
value based CRM, Customer centred organizational configuration, technology based CRM
and satisfaction of commercial banks account holders in Nairobi County was found to be
statistically significant at 5% significance level. In addition, demographic variables; age,
gender and income had a moderating effect on the relationship between CRM and
satisfaction while service quality had a statistically significant mediating effect on the
relationship between CRM and satisfaction of commercial banks account holders at 95%
confidence level. The study concluded that CRM has a positive and statistically significant
effect on satisfaction of commercial banks account holders in Nairobi City County,
Kenya. The findings of the study reveal that commercial banks management should invest
more in customer centred organizational configuration and technology based CRM
because they have a significant effect on account holder satisfaction with commercial
banking services. The CBK and the government can use the findings of this study to
formulate CRM related policies that enhance satisfaction of account holders with
commercial banks services. This study also contributes to the pool of knowledge and
further research in terms of the interplay between CRM, service quality, demographic
characteristics and satisfaction of account holders in commercial banks. The study
suggests that similar studies be carried out in other service industries.
Edu, F (2021). Customer Relationship Management And Satisfaction Of Commercial Banks’ Account Holders In Nairobi City County, Kenya. Afribary.com: Retrieved June 24, 2021, from https://afribary.com/works/customer-relationship-management-and-satisfaction-of-commercial-banks-account-holders-in-nairobi-city-county-kenya
Frontiers, Edu. "Customer Relationship Management And Satisfaction Of Commercial Banks’ Account Holders In Nairobi City County, Kenya" Afribary.com. Afribary.com, 04 Jun. 2021, https://afribary.com/works/customer-relationship-management-and-satisfaction-of-commercial-banks-account-holders-in-nairobi-city-county-kenya . Accessed 24 Jun. 2021.
Frontiers, Edu. "Customer Relationship Management And Satisfaction Of Commercial Banks’ Account Holders In Nairobi City County, Kenya". Afribary.com, Afribary.com, 04 Jun. 2021. Web. 24 Jun. 2021. < https://afribary.com/works/customer-relationship-management-and-satisfaction-of-commercial-banks-account-holders-in-nairobi-city-county-kenya >.
Frontiers, Edu. "Customer Relationship Management And Satisfaction Of Commercial Banks’ Account Holders In Nairobi City County, Kenya" Afribary.com (2021). Accessed June 24, 2021. https://afribary.com/works/customer-relationship-management-and-satisfaction-of-commercial-banks-account-holders-in-nairobi-city-county-kenya