The Adoption of Customer Relationship Management System by Commercial Banks in Kenya
Abstract
With the increasing competition in the service industry there is need for every service oriented
firm to ensure that they have a competitive advantage over other firms. This revolves around
ensuring that customers are retained and not lost to other firms. To be able to attain this objective
CRM system was developed. CRM system is the most innovative process to create loyalty by
maintaining a long term relationships of trust between customers and organization. It is a broadly
recognized, widely-implemented strategy for managing and nurturing a company's interactions
with customers and sales prospects. However, the adoption of CRM system in Kenyan bank has
been slow despite the advantages associated to the adoption of CRM system. This study
therefore aimed at determining the factors that affect the adoption of CRM strategies in Kenyan
banks. The specific objectives included identifying the extent of adoption of CRM systems
among Kenyan banks; benefits; challenges; and factors affecting the adoption of CRM systems
in banks in Kenya. Cross sectional research design was used to carry out the study. Respondents
and participants for the study included employees from frontier, emerging and developed banks
in Kenya. Purposive sampling method was used to select the participants and the respondents
and interviews or questionnaire administered to collect data. The data was then analyzed using
SPSS (Statistical Package for Social Scientists) software and MS Excel 2007. From the findings
respondents unanimously agreed that the CRM system helped banks to understand their
customers' demography and analyzed loan performance with the highest score of 84.8%.
Additionally Adoption of CRM was reported to ensure personalized attention is provided by the
bank to the customers and enabled the bank to conduct risk analysis and increase customer
service effectiveness. Furthermore adoption of CRM was reported to ensure professional
behavior of the employees of the bank and developed and improved new products for the
customers. On the other hand respondents strongly agreed that chances of CRM failure are
possible. Other CRM adoption challenges highly rated included need for further training of IT
staff to efficiently operate the CRM systems and that CRM systems require continuous
maintenance, information updating and system upgrading. The study recommends that before
embarking on CRM, it is necessary to delineate CRM and technology. The researcher also
recommends that through CRM systems; the banks should recognize the diversity of experience
and needs of different customers and develop the propositions both relevant and practical, but
not too complex.
Citation
Maragia,Sheilla M.,The Adoption Of Customer Relationship Management System By Commercial Banks In Kenya.Publisher
University Of Nairobi