Customer Relationship Management (CRM): A Study Of Ghana’s Banking Industry

The customer has become the centrepiece of business strategy due to the growing realization of the importance of the customer to businesses. The principal driving force behind this trend is competition. The present competitive landscape in Ghana’s, banking industry has accentuated the need for effective management of relationships as a customer retention strategy. The major focus of this study was to explore the relationship between CRM practice and customer loyalty and also examine the effect of mediating variables between CRM and customer loyalty in Ghana’s banking industry. Data was collected using questionnaires from 247 relationship staff of various universal banks in Ghana. The study found that the six CRM constructs (trust, commitment, communication, ‘social and financial bonds’, competence, conflict handling) cumulatively had significant positive effect on customer loyalty. Individually, Competence, commitment and communication were found to be significant drivers of customer loyalty. Similarly, the study also revealed that the mediating variables together are essential co-determinants of customer loyalty in that they together boost the potential of CRM to enhance customer loyalty. The study recommends that if banks desire to achieve high customer loyalty then CRM has to be considered as a strategy. Banks must recruit qualified relationship staff. Relevant and continuous staff training should also be given the highest premium since competence has been found to be the chief driver of customer loyalty. Finally, Top management must demonstrate genuine commitment and active involvement in relationship management issues through regular supervision, leadership, participation while providing vision and shaping values towards building a customer-centric culture in the entire organization.

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APA

Anabila, P (2021). Customer Relationship Management (CRM): A Study Of Ghana’s Banking Industry. Afribary. Retrieved from https://afribary.com/works/customer-relationship-management-crm-a-study-of-ghana-s-banking-industry

MLA 8th

Anabila, Peter "Customer Relationship Management (CRM): A Study Of Ghana’s Banking Industry" Afribary. Afribary, 06 Apr. 2021, https://afribary.com/works/customer-relationship-management-crm-a-study-of-ghana-s-banking-industry. Accessed 16 Jul. 2024.

MLA7

Anabila, Peter . "Customer Relationship Management (CRM): A Study Of Ghana’s Banking Industry". Afribary, Afribary, 06 Apr. 2021. Web. 16 Jul. 2024. < https://afribary.com/works/customer-relationship-management-crm-a-study-of-ghana-s-banking-industry >.

Chicago

Anabila, Peter . "Customer Relationship Management (CRM): A Study Of Ghana’s Banking Industry" Afribary (2021). Accessed July 16, 2024. https://afribary.com/works/customer-relationship-management-crm-a-study-of-ghana-s-banking-industry