ABSTRACT

Customer Relationship Management has developed as an approach based on maintaining positive relationships with customers, increasing customer loyalty and expanding customer lifetime value. The study focused on the effect of customer relationship management on the marketing performance of banks. The problem that led to the study revolves around that there is no comprehensive study of the dimensions relevant for the establishment of long-term marketing relationships and enhanced marketing performance has been reported yet. The overall objective of the study is to examine the effect of customer relationship management on the marketing performance of banks. Specifically, the study sets out to achieve the following sub objectives; to examine the effect of customer’s identification on customer retention in Union Bank Plc; to ascertain the effect of communication of values on customer patronage; to determine the effect of differentiation on customer satisfaction. In other to achieve the objective of this study, two research hypotheses were formulated and tested using the Correlation analysis, relying on the Statistical Package for Social Sciences (SPSS). Data for the study was collected through questionnaire, and data collected from 266 respondents which constituted the sample size. The study found significant relationship between customer care services and customer loyalty of Union Bank Plc this is considering the fact that customers to stick with a manufacturer who takes time to attend to their needs; to a large extent, as the firm increases in level of commitment, tends to enhance customer perceived value. The concluded that for effective and efficient CRM influences customer loyalty of firms in the banking/finance sector and for sustainable customer loyalty which transforms to customer retention, they should always improve on their relationship management strategies. It recommends that effective and efficient relationship monitoring policies should be put in place for measuring the performance of these relationship management strategies as it will enhance their operations more efficiently. Limitation/suggestions for further studies were given.

TABLLE OF CONTENTS

Title i

Declaration ii

Certification iii

Dedication iv

Acknowledgements v

Table of contents vi

List of tables viii

Abstract ix

CHAPTER 1

1.0 Introduction 1

1.1 Background of the Study 1

1.2 Statement of Research Problem 3

1.3 Objectives of the Study 4

1.4 Research Questions 5

1.5 Research Hypotheses 5

1.6 Significance of the Study 5

1.7 Scope of the Study 7

CHAPTER TWO

REVIEW OF RELATED LITERATURE 8

2.1 Conceptual Framework 8

2.1.1 Customer Relationship Management (CRM) 9

2.1.2 Customer Identification and Business Performance 9

2.1.3 Differentiation 10

2.1.4 Cost leadership 10

2.1.5 Business Performance and its indicators 11

2.1.6 Customer Retention and Business Performance 12

2.1.7 The concept of CRM 12

2.2 Theoretical Review 14

2.2.1 Competitive Advantage Theory propounded by Michael Porter (1980) 14

2.2.2 Industrial Economics Theory by Porter Michael, 1980 16

2.3 Empirical Review 18

CHAPTER 3

RESEARCH METHODOLOGY 20

3.1 Research Design 20

3.2 Area of Study 20

3.3 Population of the Study 21

3.4.1 Sampling Technique 21

3.4.2 Sample Size Determination 21

3.5 Validity of Instrument 22

3.5.1 Reliability of the Instrument 22

3.6 Sources of Data Collection 22

3.7 Method of Data Analysis 22

3.7.1 Model Specification 23

3.7.2 Decision Rule 23

CHAPTER 4

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 24

4.1 Data Collection and Collation 24

4.2 Test of Hypotheses 25

4.2.1 Hypothesis 1 25

4.2.2 Hypothesis Two 25

4.3 Extent to which Communication of values enhances Customer 

Patronage of Union Plc 26

4.2.3 Analysis of Relationship between CRM of Union Bank Plc and 

Customer Satisfaction 27

CHAPTER 5

SUMMARY, CONCLUSION AND RECOMMENDATION 29

5.1 Summary of Findings 29

5.2 Conclusion 30

5.3 Recommendations 31

5.4.1 Managerial Implication of the Study 33

5.4.2 Limitation/Suggestions for Further Studies 34

REFERENCES

Questionnaire