The Extent of Use of Customer Relationship Management Strategies (Crms) in Improving Retention of Retail Banking Customers Among Commercial Banks in Kenya

Abstract

Business climate is becoming complex and greatly driven by innovative technology day by day. Changing consumer needs have posed new challenges to financial institutions. In Kenya, banking industry has faced dynamic competition among players and from mobile phone companies, which are offering financial services at very competitive rates. Due to this, many banks have turned to Customer Relationship Management Strategies (CRMs) to acquire and retain profitable customers. A descriptive research design was used to target forty-three commercial banks out of which only nineteen were involved in retail banking. A questionnaire was used as a tool for collecting data, which was analyzed through descriptive statistics. The study established that, retail commercial banks in Kenya had designed management ways of learning and satisfying retail banking needs. The study also found out that, the banks had adopted CRMs ‘to a great extent’ to help them acquire and retain profitable customers though CRMs which involved great use of information technology were used to a less extent. The study recommends further research on non-financial measures of customer satisfaction and market share as profit drivers in retail banking.