Measuring customer relationship management in South Africa Banking with specific reference to selected Port Elizabeth customers

Abstract

The objective of Customer Relationship Management (CRM) is to retain and reward existing customers as well as well as attracting new customers. Factors such as risk of failure and marketing inertia have cause majority of retail banks in South Africa to continue with the traditional ways of marketing and only few retail banks have adapted CRM. The purpose of the study was to determine SA Banking customers’ perceptions of the CRM initiatives offered by their banks and what banks could do to improve the relationships with customers. Grounded on CRM theory, the study was underpinned by an interpretivist paradigm framed within an exploratory qualitative research approach. Data was collected through semi-structured open-ended interviews with 20 purposive selected retail banks customers. Data was analysed using the grounded theory method following the situational analysis of Strauss and Corbin (1990). The results reveal that an effective CRM practices will increase customer satisfaction and improve effective relationship with existing and prospective customers. This will be achieved by managing information and monitoring performance trends in delivering products and services that facilitates attraction and retention of customers. The results further reveal that participants feel they were not even made aware of various loyalty programmes like reward schemes and other modern banking initiatives their banks were offering a situation that prompted them at times to switch to other banks. The study recommends that retail banks should place emphasis on the concept CRM by positioning their customer at the centre of their product and service development strategy. The study further recommends that retail banks needs to improve the customer satisfaction levels through the utilisation of various modern banking technologies so as to positively influence customer experiences of their offerings. The study seeks to recommend that the five purposive selected retail banks from Port Elizabeth be used to better demonstrate their differentiated reward schemes they each have for their customers in their quest to create general awareness and also managing relationships with their customers.