INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW ISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :0.882 VOLUME 3, ISSUE 5, MAY 2015
A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT AT BANK NIZWA Dr. M. NASRINSULTHANA 1
FUZIYAILAHI AL-BALUSHI 2
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Faculty of Business studies, Gulf College – Mabaila, Sultanate of Oman. Student, Deparment of Business Studies, Gulf College – Mabaila, Sultanate of Oman
Abstract This study on customer relationship management is done at Bank Nizwa in Oman. In this study the researchers used the research design as descriptive analysis. Simple Random sampling technique in probability sampling method was adopted with the sample size of 110 customers of Bank Nizwa. Phenomenology philosophy was chosen to study the social phenomena about the relationship among the customers. Inductive approach as research approach is used and in inductive approach survey as well as grounded theory as research strategies were chosen in this study. The questionnaire consists of both open ended and close ended questions to do qualitative and quantitative analysis. The finding pertaining to this study will be helpful to Bank Nizwa to focus more on the customers need.
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Keywords: Customer relationship management, Customers, Relationship.
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INTRODUCTION In General the term Customer Relationship Management (CRM) refers to strategies, practices and technologies used by the bank in order to manage and analyse the bank’s relationships and interactions with their customers and potential customers. On the other hand Vinayagamoorthy, A &Sankar, C (2012), defined CRM a reliable business strategy to analyse the bank’s most profitable customers and prospects.
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OBJECTIVES OF RESEARCH 1) To find out the relationship among CRM, customer fulfilment and customer constancy among Nizwa. 2) To identify the ways to improve the relationship among the customers of Nizwa. 3) To improve the current strategies in order to meet the customers’ needs.
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LITERATURE REVIEW Buttle (2004) stated that nowadays CRM has appeared as a primary commercial priority. CRM is not simply a process used by leading organisations to achieve a competing advantage: in fact it has become an essential for their livings. Number of studies concentrated on the best process to integrate CRM effectively in an organisation, either via information technology, e-business and e-commerce (Thomas, 2003). Furthermore other researchesconcentrated on the extent to which CRM could extend profitability in organisation (Kennedy, 2004). Buttle (2004) said CRMmay be considered by means of a main commercialscheme that incorporates internal methodsbesides operational and external complexes, towardsproducing and providingassessment to aimedcustomers, on anincome (Buttle, 2004:34). According to Gordon (1998), it is an up growth method of detecting and producinginnovativeassessmentthroughcustomers and then distributing the profits from this over a lifetime of relationship.
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INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW ISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :0.882 VOLUME 3, ISSUE 5, MAY 2015 Swartz &Iacobucci (2000) included that successful relationships with customers involve an associated fulfilment, with assistancesin cooperationto parties, namely the facilityof the organisation as well asindividuals. Wilmshurst& Mackay (2002) continued that the customer will hope a relationship that will benefit his/her ownwell. Customer Relationship Management in Financial Services (2001) pointed out that customers as well will want the organisation to manage all customer interactions and concentrate on building a relationship over time (Customer Relationship Management in Financial Services, 2001). Ryals et al., 2000; Ling and Yen, 2001; Xu et al. (2002) gave a strong statement that the CRM is a recent phenomenon and is becoming a major authority, where it has emerged as a strategic solution to business problems, if implemented successfully. Ngai (2005) concluded that an organisation has to adopt CRM for its own benefit to build an effective relationship with respective customers and as well to increase business profitability. Thus Allen Bonde, analyst with the extraprise group, quoted in Colkin(1999) ensure that CRM is a must for most organisations to survive in the market. RESEARCH PHILOSIPHY, APPROACH AND STRATEGY
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Easterby-Smith, et al. (2002) categorises three reasons on the importance to understand philosophies; first reason by understanding the research philosophy, it enables the researcher to identify and gather data and able to response to questions regarding the research; second the knowledge of research philosophy will allow and reinforce the assessment of the various methods used in the following research to avoid the wrong and unwanted work; at last by understanding the meaning of research philosophy and its advantages and benefits, it will help the researcher to be more imaginative and exploratory in their method of research.This study reflects the principles of the phenomenon philosophy; which is a key of obtaining the comprehensive explanation and description of the problem. On the other hand, the reality is analysed through subjective interpretation. As Fisher (2004) stated that in non-positivist philosophy the key element of the study is the natural environment followed with effects on those phenomena.
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Saunders et al. listed two main research approaches conducted by business research known as deductive and inductive approaches. In this study inductive approaches was adopted.The research follows both quantitative as well as qualitative methodology in the form of survey questionnaire and observation respectively. The inductive approach was chosen because the rationale of the research is that the qualitative approach is appropriate because the research is capable to achieve more in-depth understanding of the research context and allows a more flexible structure of the research (Saunders et al., 2003). On the other hand the in order to fulfil the achievement and goals of research, the current researchretains a experiential approach as well, arguing on thestatisticalmethodologyon its applicabilitywhilegatheringstatisticsassociated to fulfillmentsfrom individuals. Saunders et al (2007), reported the eight research strategies, which can be selected depending upon the type of research. The proper strategy that is chosen for the research is survey questionnaire and grounded theory.
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ETHICAL IMPLICATION OF THIS RESEARCH Occur when undertaking a studywhile keeping them in concern. The aim of these principles in a studytowards making sureno individual get injured or go through difficult penalties from the studyaccomplishments (Cooper and Schindler, 2003). Easterby-Smith et al. (2002) detailed the capabilityondiscoveringdocuments or pursuingclarificationover qualitative approaches will need a better possibility designed formoral concerns (Easterby-Smith et al., 2002). This is when collecting certain data’s from customers and bank employees, while they will be asked sensible questions in
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INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW ISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :0.882 VOLUME 3, ISSUE 5, MAY 2015 related to their satisfaction etc. However the selected topic is not sensitive as it has been approved by the module tutor. Somehow the surveyors respondents do not disrespect anyone, therefor, for more safety on data given there will be association of data protection and management by ensuring data is saved personal with me and if there is copy to be provided to the tutor the surveyor will be informed. Various questions that have been included in the survey mostly try to find out how customers are satisfied with the services that they have been provided. In conclusion all applicantsare allowed to withdraw before or whileanswering any question in the survey is potentially pretended or loss their self-respect. RESEARCH METHODOLOGY A study has been carried out on customer satisfaction at bank nizwa using a questionnaire survey. The questionnaire survey has been designed based on the study of the literature review. This method has been used in order to come to a conclusion of customer services satisfies its customers or not. Furthermore the research would be descriptive in nature. There are two simple sampling techniques that are implemented and included in this research which are: 1- Sampling size: consists of 110 customers that have answered the questionnaire survey. 2- Sampling unit: will be in Bank Nizwa.
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The research included primary and secondary data collection. The primary data was through questionnaires that consisted of 5 questions. The secondary data was through books, internet, and research article that has been used to gather and organize the research, and to ensure that the objective was met. The tools that have been used for analyzing was percentage analysis through questions that have been answered and estimate the percentage of responds towards a question and other. In conclusion the structure of the questionnaire survey is made up of 4 close ended questions for quantitative analysis and 1 open ended question for qualitative analysis.Therefore the methods that are used are both primary and secondary data. The primary method that is used in this research consists of 10 questionnaire surveys; which will be explained in details on the different surveyor’s answers. Mostly more than 4 questions will be formatted referring to the objective included in the literature review. The secondary data method now will interfere by analyzing and interpreting the primary research. The results will be explained and findings will be demonstrated.
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ANALYSIS AND FINDING The survey questionnaire consists of 5 questions. It is designed in such way due to the customer’s ability to answer them in their waiting time for any bank services. This chapter will present the findings obtained from the survey paper, by analysing the answers from customer relationship management survey that was conducted. The survey is attached in the appendix. The keypurposeregarding the following chapter is to characterize key results of the research. 10 surveys where distributed amongst both genders customers that came to customer service in Bank Nizwa. The results are discussed in a chart form in each graphs. Below are graphs that explain in details the survey results. Figure 6.1 lists the responses to the question if it was quick and easy to connect with a customer service revealed that 40% of whom agreed that it was easy and quick.In contrast the percentage was equal between those whom choose it was neutral and whom disagreed (30%). While no customer strongly agreed or disagreed.
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INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW ISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :0.882 VOLUME 3, ISSUE 5, MAY 2015
Through the second question, figure 6.2illustrates that most respondents choose their issue was resolved on the initial contact, less than that 10% stated 2 – 3 times. 25% specified that they contacted customer service before an issue was resolved 4 or more times, in conclusion only 5% of whom their issue was not yet resolved.
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In the third question, 50 % agreed to that the representative had enough knowledge, whereas only 15% strongly agreed to it, 20 % of respondents stated that the representative knowledge was neutral, 10 % disagreed to it and 5% strongly disagreed stating that the representative did not sufficient knowledge.
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INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW ISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :0.882 VOLUME 3, ISSUE 5, MAY 2015
Regarding the final graph (figure 6.4), almost more than half respondents (45%) indicated that the issue was fully resolved, while 20% detailed that their issue was partially resolved, 20% stated that they were referred to someone else,10% stated other and the rest 5% their representative did not understand their issue.
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In conclusion the final question in the questionnaire was written question, where respondents have to provide suggestions in order to improve the customer service in bank nizwa. Some of the responses where ; to improve customer service among all bank nizwa; to open more branches in different locations in Muscat and other cities of Oman; to have more ATM machines in different areas; to issue credit cards ; and to distribute more deposit machines.
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VALIDITY AND RELIABILITY According to Yin (1994), validity talk about measuring and a degree towards whatresearch accurately reflects; whilst reliability is involved with how reliable the methods are when conducting the survey (Yin, 1994). Inaccuracies can occur in any part of the research, the concept of validity is applied to the research due to the attempts that may take place when there is a logical link between problems and goals of the study (Kumar 2005). Reliability is by ensuring the methods of data will lead to consistent results. In this research all information’sare accurate as well asdependable by evaluating and critically reviewing on the proportion of references.
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Yin (1994) identified six causes of data which can be obtained in a research including; records, archival histories, conversations, direct surveillance, observerreflection, and physical artifacts (Yin, 1994). Hence the sources that are used are reliable either books, journals or reliable websites. In conclusion the increase reliability on sending the survey questionnaire tin advance to ensure the surveyors has sufficient time to prepare themselves and answer the questions. Yet the copies of results were obtained carefully for further analysis. FINDINGS AND RECOMMENDATIONS: In totality 70% of the respondents says that they were able to connect quickly and easily with the customer service. Only 30% feel that it is not possible to connect quickly. The researchers
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INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW ISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :0.882 VOLUME 3, ISSUE 5, MAY 2015 recommended that if the customers were not able to connect the customer call center with the help of toll free number then they can either contact the branch head directly or put a mail at www.banknizwa.com and immediately the customer’s queries will be answered. Only 35% of the respondents were disappointed by trying more than 4 times. If any emergency then post mail to the branch head to solve it immediately. Overall 65% of the respondents feel that the customer care center people were knowledgeable. The researchers recommend that proper on the job training should be provided to the employees so that all the staffs will be knowledgeable. Only 45% of the respondents feel that their problems were fully solved. The researcher strongly recommend that if the problems were partially resolved or you have any complaint please put mail to the branch head of bank nizwa the problems will be solved in 24 hours. CONCLUSION It is very important in large organisation to ensure the customer satisfaction. Peppers &Rogers (2005) stated that customer satisfaction is an essential to long term success of any organization, while keeping on mind it is important to satisfy the customers, banks mustsustain a good and stable connection with their customers. The research covered various aspects regarding customer satisfaction. Today there is a very highly competitive environment amongst those big organizations; hence they need to recognise the significance of pleasing more customer-centric (Peppers &Rogers, 2005). It is very essential to understand initiatives of the CRM components. Jakábová (2012), concluded the three main components of CRM are people, technology, and process .In contrast the research produced meaningful and interesting findings.
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BIBLIOGRAPHY
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Abbott, J., Stone, M., &Buttle, F. (2001). Customer relationship management in practice-a qualitative study. Journal of Database Marketing, 9(1), 24-34. Anderson, E. W., Fornell, C., & Roland, R. T. (1997). Customer satisfaction,Productivity and profitability: Differences between goods and services. Marketing Science, 16(2), 129-147. Center for the Study of Social Policy (2007). Customer Satisfaction. Center for the Study of Social Policy, USA. Donnelly, M (2009). Building Customer Loyalty: A Customer Experience Based Approach in a Tourism. Waterford Institute of Technology, UK. Kocoglu, D (2012). Customer relationship management and customer loyalty; a survey in the sector of banking, Vol. 3 No. 3,International Journal of Business and Social Science, USA. MBA (2006). A Dissertation On: Customer Relationship Management And Importance of Relationship Marketing In the Banking Sector. Alliance Business Academy, Bangalore. Ondieki, H (2011). The effect of customer experience strategy on the performance of Kenya commercial bank limited. University of Nairobi, Kenya. Rouse, M (2013). Customer relationship management (CRM).Available at: nd http://searchcrm.techtarget.com/definition/CRM, accessed 2 December 2014. Vinayagamoorthy, A &Sankar, C (2012). Customer Relationship Management in Banking Sector. Department of Commerce, Periyar University, Salem – 11, Tamil Nadu, India.
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INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEW ISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :0.882 VOLUME 3, ISSUE 5, MAY 2015 APPEDICES: CUSTOMER RELATIONSHIP MANAGEMENT SURVEY SURVEY QUESTIONNARE ATTACHMENT Customer satisfaction is “the state of mind that customers have about the bank and its products or services when their expectations have been met or exceeded. This state reflects the lifetime of the product or service experience.” Please spend few minutes to answer the following question. Thank you for your cooperation. Please tell us just a bit about yourself… Your Age ☐ Under 18 ☐ 18 – 44
☐ 45 – 64 ☐ 65 or over
☐ I prefer not to respond
Our communication response time… It was quick and easy to connect with a customer service. ☐ Strongly agree ☐ Agree
☐ Neutral ☐ Disagree
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☐ Strongly Disagree
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How many times did you have to contact customer service before this issue was resolved?
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My issue was resolved on the ☐ 4 or more times initial contact 2 – 3 times My issue is not yet resolved ☐ ☐ The representative’s knowledge and professionalism… The representative was knowledgeable.
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☐ Strongly agree ☐ Agree
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☐ Neutral ☐ Disagree
☐ Strongly Disagree
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How would you best describe the outcome of your contact? ☐ My issue was fully ☐ I was referred to ☐ Representative did not resolved someone else understand my issue issue was ☐ I received wrong or ☐ Other ☐ My partially resolved unclear information What do you suggest to improve the customer service in Bank Nizwa?
Thank you very much for taking the time to complete this survey. Your input is valued and very much appreciated!
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