IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON NON-CONSUMER CUSTOMER BUYING BEHAVIOR
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- 1-5 Chapters
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- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 5000
All businesses and particularly financial institutions have been affected to some degree in what is happening in the global market place. Now, not only do organizations aim to satisfy the customers but they attempt to do this more efficiently and effectively than their rivals in the competitive market place in order to attain their goals. The most important goal of an organization is to maintain customer satisfaction and focus on customer centric approach in their organizational and marketing strategies. The significance of customer satisfaction cannot be dismissed while happy customers are like free advertising for the financial institutions. It is necessary to put the customer at the center of the business according to its strategies, events and processes. In fact, it is easier and more profitable to sell to present customers than to find new ones. Financial institutions are setting their strategies to ensure customer satisfaction, retention, therefore their employees should be more customer-focused and service-oriented in order to satisfy their customers. Customer relationship management (CRM) is a concept for managing a company’s interactions with customers, clients, and sales prospects which can achieve financial institutions goal such as customer satisfaction. It involves using technology to organize, automate, and synchronize business processes. The objectives of CRM are to enhance profitability, income, and customer satisfaction. To attain CRM, many organizations use set of tools, technologies, and procedures to support the relationship with the customer to enhance sales. Therefore, CRM is an issue of strategic business and process rather that a technical one. Customer relationship management (CRM) is a concept for managing a company’s interactions with customers, clients, and sales prospects. (Long, et. al, 2013)
Bowen and Chen (2001) argue that having satisfied customers is not sufficient. This is because customer satisfaction needs to have direct impact on customer satisfaction and loyalty. Sivadas and BarkerPrewitt (2000) stress that there is a rising recognition that the last objective of customer satisfaction measurement should be customer loyalty. Many organizations merely categorize customer satisfaction measurement as type of “marketing intelligence” instead of using it as management tool to build customer service quality improvement processes and increase profit (Linnell, 2009)
Through CRM companies expect to improve their relationship with their existing and customers and attract new prospects in a bid to influence their buying behaviour, increase customer satisfaction and loyalty, and thus, growing their sales volumes and profitability. The business processes need to be supported by CRM system that makes it possible to create a single view of the customer as well as the company. CRM system facilitates collection and analysis of customer data which results into a more effective management of customer interactions. CRM functionality can be divided into three main categories which are marketing automation, sales force automation, and customer service & support (Persson, 2004).
Shukla (2010), emphasizing the need for marketing research, argues that a significant number of organizations fail to satisfy superior customer needs because their perception of what customers want is far from reality. ‘It is not because they do not care about the customers’ needs; but they try to reach the wrong end with the wrong means’.
1.2 Statement of the Problem
Customer perception of the world has significantly been changed by globalization and high usage of internet. People are more connected and informed now than ever. Flow of goods and services coupled with massive promotions and advertisements in various areas of the world tends to provide more choices to customers than ever before. On the other hand, researchers have found several issue and problems associated with Customer Relationship Management and its impact on consumer customers buying behavior. One of the issues is measurement of the effectiveness of the CRM initiatives.
Researchers still lack unanimous answers to some questions. These include, how can the impact of various CRM initiatives on non-consumer customers be measured? How can the success of CRM in an organisation be assessed? Many companies, especially in the developed world, have implemented the notion of CRM. However, researches show that, the main problem has become for the organizations to measure the success and impact of CRM on their customers’ buying behavior.
The problem on how the effectiveness of CRM in influencing the non-consumer customers’ buying behavior can be measured reliably however unsuccessful CRM implementations may lead to decreased customer satisfaction and loyalty. This means, increased defection and loss of loyalty.
1.3 Objective of the Study
The main objective of this study is to find out the impact of CRM on non-consumer customer behavior, specifically the study intends to:
1. To find the impact CRM on the buying behavior of non-consumer customers
2. To investigate the factors that influence the buying behavior of non-consumer customer behavior
3. To examine the impact of CRM on organizations
1.4 Research Question
1. Is there any impact of CRM on the buying behavior of non-consumer customers?
2. What are the factors that influence the buying behavior of non-consumer customer behavior?
3. What is the impact of CRM on organization?
1.5 Research Hypothesis
Ho: there is no impact of CRM on the buying behavior of non-consumer customers
Hi: there is impact of CRM on the buying behavior of non-consumer customers
1.6 Significance of the Study
Although there are lot of researches that have been carried out on the impact of CRM on consumers buying behavior, this research however took a different dimension i.e investigating the impact of CRM on ‘Non Consumer Customers’ buying behavior. The consumers are the ones who finally consume or utilize the products. These are the ones who can tell how it tastes. Non consumer customers on the other hand, may even have no idea how a product is used.
This research is therefore purported to contributing to existing literature and help to roll out the knowledge of CRM and its impact on non-consumer customers buying behaviour in Nigeria. Again, the research provides additional evidence that CRM can impact non consumer customers buying behavior in a positive way.
And finally this research will add to the existing literatures on CRM and also serve as a guide and reference for other research on the same dimension.
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