Quality and Customer Relationship Management (CRM) as a Competitive Strategy in the Banking Industry in Kenya

Abstract

An investigation on how Quality and Customer Relationship Management (CRM) acts as a competitive strategy in the banking- industry in Kenya is a study that has attempted to evaluate the benefits and impacts that are associated to the their adoption in banking industry. The relationships between service quality and customer relationship manage nent are also established in this study to evaluate their effectiveness in the implementation of the competitive advantage in banks. The target population of the study was the whole population of the different types of banks operating in Kenya. These included the commercial, investment ind the retail banks. The respondents were the Customer Relations Mangers in the respective banks. Data collection was therefore meant to collect the first hand information (quantitative daia) that was used in the analysis of the study. The study focused in gathering the information associated to the adt ption, effectiveness and impacts of SQM and CRM as competitive strategies which are practiced in banking industry. There is a clear relationship between the SQM & CRM and the performance of the banks in Kenya which greatly influences the extent of competition and implementation. The findings imply that CRM has a great impact on the customers behavior for instance their attitude towards the bank is greatly improved, the Bank's understanding of customer expectations is greatly enhanced, while the customers’ perceptions on the quality of the banks’ services is changed. These include other factors such as the reliability of the banks, efficiency in communication, customer retention are also greatly supported in the banks due to the adoption of CRM strategies. The benefits which are greatly realized in the banks due to effective SQM are for instance lower :osls and efficiency in operation, improvement in product quality, improved market share, better reputation, and increased customer satisfaction. i is recommended that further study should be done on the challenges facing the adoption of services quality management in the banking industry which would help to explain why banks lave varied performance levels and difference in the customer perception toward their services.