dc.description.abstract | Nowadays, many businesses such as banks, insurance companies, and other service
providers have realized the importance of Customer Relationship Management (CRM)
and its potential to help them acquire new customers, retain existing ones and maximize
their lifetime value. At this point, close relationship with customers requires strong
coordination between IT and marketing departments to provide a long-term retention of
their customers. The purpose of this study was to establish the use of CRM systems and
further determine the challenges facing the use of CRM systems among the commercial
banks in Kenya.
The study used descriptive design. The study targeted forty five (45) commercial banks
within Nairobi Province. Primary data was obtained using self administered
questionnaires. The successfully filled up questionnaires containing responses were first
edited for accuracy, consistency and completeness. The data from questionnaires was
analyzed using procedures within statistical package for social sciences (SPSS). The
responses were analyzed using measures of dispersion (mean and standard deviation),
distribution tables, quartiles (percentiles) and graphical analysis so as to explain the
response rates from various respondents.
The study found out that IT ensured personalized attention to the customers and also
facilitated variety of products offered by the bank. It enabled the bank to understand and
serve customers better than their competitors, developed and improved new products for
the customers. It also improved processes and relationships with its customers and
business partners and further built a long lasting relationship with the customers,
increased revenues and profits. The study concludes that CRM is a useful business
strategy and most essential to banks which have a day to day dealing with the customers.
It is beneficial for all stakeholders: customers, employees, and investors. Good
maintenance of CRM system can enhance increased performance through revenues and
profits since adoption of CRM builds a long lasting relationship. The study recommends
that banks should recognize the strategic role played by CRM as well as the increased
importance ascribed to CRM in the future. They should recognize the diversity of
experience and needs of different customers. Moreover, banks should hire professional
people to deal with the system efficiently especially when the system is complex. | en |