The impact of customer relationship management technology on financial institutions: Case study of banks in Nigeria
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Iwenya, John Efeoghene
MA of Business Administration
Dublin Business School
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The growth and advancement of technology within the global economic system brings to light how organizations have started adapting different systems and ways in order to stay relevant and maintain their existing customer base. Information Technology has become an enabling force for the development of business growth and especially in the financial services industry. Financial institutions have now included technology into the traditional method of customer relationship which has created different impact in providing customers with technology driven services. By including technology to the traditional customer relationship management, banks have now adopted CRM technology into their business strategy for measuring performance and customer satisfaction. The objective of these new programmes for businesses is to provide adapted and personalized product or services that will satisfy the customer, increase its satisfaction and loyalty towards the company. This research attempts to ascertain the impact of CRM technology on financial institution in Nigeria using the banking sector in Nigeria as the case study. The study examined four objectives such as to investigate the impact of Technology-Based CRM on performance of banks In Nigeria, to identify the benefits and difficulties of using information technology system in the customer retention and loyalty for banks, to identify effectiveness of technology services in banks between older people and young people and to ascertain if customers migrating towards banks that provide more technological service. These objectives formed the basis of research questions. Probability sampling technique was used in selecting the sample size. Data was collected through the use of questionnaire and semi-structured interview guide. The study revealed that technology driven CRM has a major impact on the banking sector performance and increased customer satisfaction and loyalty to banks that provide technology driven services. It also showed that the older generations are slowly adapting to the use of technology but not taking away the fact that physical contact is still needed in areas of services provided by banks. Thus, this study shows that there is a great contribution that CRM technology brings to the banking performance and customer satisfaction in building strong and long -term relationship d train managers to take diversity initiatives. The study could contribute to the management of banks in Nigeria in order to help them in their actual strategy and the orientation of their future strategy in dealing with customers.