A study of the Customer Relationship Management (CRM) strategy of local banks from the perspective of MBA students at UKZN.

Abstract

The banking landscape continues to be shaped by the global themes of mobile technology, cyber-crime, volatile financial markets, a rigid regulatory framework and a more demanding and well informed customer. The traditional role of banks and the manner in which they engage with their clients has changed with the advent of mobile technology, social media and other digital technologies. With the rapid pace of change brought by the advancement of technology, compliance enforced legislation & the growing intensity of competition, the strategic focus of banks has been forced to adapt to an ever changing environment. The following study explored the changing face of Customer Relationship Management (CRM) practices within the local banking sector, as experienced by customers. In light of an ever changing banking sector and a rapidly changing technological environment, the customer perception was investigated to detemine the level of service quality prevalent amongst local banks and to gauge a measure of customer centricity & loyalty of customers towards banks. In view of a changing business environment, the study sought to take a closer look at the key components of CRM and their importance in shaping customer perceptions. The customer perspective has been represented by the 2nd year Master of Business Administration (MBA) student population, who are based at the Graduate School of Business (Westville Campus). Prior arrangements were made with the lecturer, to allow the researcher the opportunity to address the class and provide a brief overview behind the purpose of the study. The quantitative approach was chosen, whereby the researcher issued a self -composed questionnaire which was designed to help achieve the objectives of the study. The study revealed significant findings, which showed that banks have started to customise their products and have started to build more personalised relationships with their clients'. There was also a significant correlation between age & the opinions on customer centricity, service quality and customer loyalty. The finding, points to the fact that the larger the age, the greater the level of agreement across all of the objectives. In closing, there were also notable areas of significant disagreement which emerged, whereby banks were perceived as having inconvenient trading hours and not being transparent with regards to bank charges and fees. Subsequent recommendations were made in view of the findings. The study also served to highlight the fact the concept of CRM is evolving, thus requiring constant client engagement to improve on existing work management practices.