Customer Life Cycle Management by Barclays Bank of Kenya

Abstract

Nowadays, organizations have realized the importance of becoming more customer-centric and invested a large amount of time and resources in a Customer Relationship Management. To be able to understand these behavioural changes the customer lifecycle model is used, which is divided into five different stages de-pending on the customer relationship to the company. In banking sector, Customer Lifecycle Management (CLM) has the potential to help bank acquire new customers, retain existing ones and maximize their lifetime value. Through use of CLM the bank has been able to provide better customer service, make call centres more efficient, cross sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, discover new customers, and increase customer revenue. Thus this study aimed to investigate the extent to which customer life cycle management has been adopted by Barclays Bank of Kenya. The study adopted a case study. The study relied mostly on primary data source which was collected through use of interview guides. The population of the study was the Barclays Bank of Kenya while customer relations managers were interviewed. The data obtained was analyzed using content analysis. The study found that customer life cycle put in place by the bank is supposed to make the lives of their customers much easier and to be a customer friendly bank. To the bank the customers‟ needs could be met by identifying their needs and putting in the necessary service products to support the continuous patronage of the customers. The study also concludes that CLM customer needs and desire drive behaviour and it should be addressed properly in order to lead to high customer satisfaction. Relationship marketing tries to establish an „intimacy‟ that is individualized like with customers via strong personal appeal and continuing commitment. This calls for trust and commitment to exist between the banker and the customer in order to ensure loyalty and build relationship. The study recommended that monitoring competitive customer relationship constantly should be an important part of a company‟s. Since customer relationship is competitive and a company's major competitors are also managing their customer relationship with potentially the same customer relationship management practice. The study also recommends that there is need for proper training for frontline staff to handle customers since it is very important must be taken into account. There is the need to identify the underlying factors that determine the behaviour of the customers. Management of banks need to develop suitable organizational support systems that will promote good customer relations as a marketing strategy to improve market growth, share and profitability.