The importance of Customer Relationship Management

The importance of Customer Relationship Management The main of Customer Relationship Management is to gather information or data about the customers. By using the data the customer service is made easy for those dealing with the customers as they have the readily available information needed to solve the issues. If customer is satisfied then the organization can have profitable business and also the support staff have the more resources available . A more data work is needed for the customer relationship management and these data work include the customer name, address, date of transactions, pending and finished transactions, issues and complaints, status of order, shipping and fulfillment dates , account information and many more etc.., The support staff must have the information from the customers as to provide answer to their needs to solve the issues without having to wait in the queue for long time and also to avoid them from going to other departments of the bank. With these customer service representatives will also be able to see customers previous concerns. According to Lynette Ryals; Andrian Paine (2001) with all the information about the customers previous concern the customers with the same issue again will not have to say again the same story all over again. This helps the support staff in taking less time to solve the problem and helps in increasing higher productivity of the support staff. Management success depends on the customer relationship management as it give the customer satisfaction and efficiency of service information by the help desk people at banks. This system also helps the organizations future course of act, whether it involves separating out one of the products in the shelve and the products that are sold. The information provided by the customer relationship management also helps the marketing and advertising people in identifying what ideas work and which do not work. Integration of Customer Relationship Management systems is an important task in achieving successful business profits but its not that easy task to integrate CRM system in banks. Most of the banks fail to integrate the CRM system as they need to share information for it to be effective. These systems also help in business expansion as they can handle huge amount of data which helps in coping with the increased number of customers and their data. By successful installation and implementation of CRM system can be sure that banks business will be successful and their customers are lot more satisfied than before.(Adrian Payne; Pennie Frow 2003) Why Customer Relationship Management is important to the organizations? Some of the reasons are stated below: The main strength of the Customer Relationship management system is that it organizes and collects the information about the customers and with this information the marketing staff can analyze for the future opportunities for example by this system the banks analyze the needs of the based to the customers and whats the customer needs but they arent buying. By available information the marketing staff develops a sales strategy. This includes package of new products and services offering to the customers with some incentives. The other reasons for the importance of Customer Relationship Management System is that each every customer is important to the business but some other customer are more worth than others . By differentiation of sales efforts organizations can produce more profits per sale hour and also they can increase more sales. With the help of CRM tools they can identify the position of department sales are most profitable and which customers are expected to buy them. Customer satisfaction is vital in the CRM systems as customer satisfaction involves two ideas: one is to meet the customer needs and other is to keep the keep the promises or words to the customers. For example if a customer requests for an appointment and request was confirmed with appointment date , then if u deny his appointment on given time then this shows ur respect or value given towards the customer . In this way , CRM is used to make sure that the organization is meeting the customer needs as fully as possible. Professional handling of after sale contacts such as service calls , resolving customer issues or helping the customer to choose the right product. Last but not the least is CRM system helps the organization sales and customer support representatives to work in smarter way because it provides the improved information about the customers at their finger tips which helps in maximizing the revenue of the organization. 2.7 :Purpose Of Online Banking: With the banking experiences all the banks has entered the online bank market with them traditional banks have also been moving to Internet banking(Geralch, 2000) , there is a wide acceptance that future retail banking will be influenced by electronic transactions( Jhonson et al.,1995; Graham,1997; Treanor, 1997). With the estimation there would be 60% of retail banking transactions will be online in the next ten years time( Barwise, 1997), These estimation can also be increased now a days as some internet banks have no branch offices; which they can reduce costs of operating and fixed costs by having replaced staffs and physical facilities with Information Technology (IT). These facilities or services gave the internet banks to offer lower or no fee services and also offering higher interest rates on saving accounts than to the traditional banks (Geralch, 2000). 2.9 Different e-CRM models in Online Banking: There are different eCRM models implemented by different banks in order to have relationships benefits with the customers and to gain loyalty, customer lifetime value for the banks. One of the models for e-CRM is one-to-one relationship collecting the data about the individual customer and trying to offer them the products closer to individual need. Transparent Marketing: In this the company involves in giving the individual customer as much control of the offer as possible to customer. Classic CRM: here the customer data is grouped as to be managed in a limited number of segments with giving different offers to each segment. Personalized communications and targeting: here the offer is similar to each individual customer but there is a light difference in their movements towards specific individual customer. 2.9.10 Benefits of e-CRM to Banks and Customers: e-CRM e- CRM benefits to customers Customers Interaction and Satisfaction Convenience to the customers Transaction processing speed through e- response Quality service e-CRM benefits to Banks Better relationship with the customers Using e-mail as communication channel Personalized or one to one services Using internet and websites to market their products Transaction security is benefited 3. Research Methodology 3.1 Introduction: In this chapter the main purpose is to look at the research methodology implemented by the researcher in this dissertation in order to collect data which will lead to successful literature review and to approach the theory by drawing conclusions from articles, theories and along with these some questionnaires that will lead to aim and objectives of the project. This chapter also gives some specific reasons why a research methodology has been used and it also shows how it helped to structure the content of this dissertation from a theoretical and also practical point of view. Primary and secondary data research may not be taken into consideration sometimes as it may not answer all the research questions the researcher wants to find out. This is because the information available may be out of date or it cannot relate the certain company or organization. But to answer the research question the researcher approaches primary research methods to find relevant information of the theory. 3.1.1: Research Plan and Objectives: The primary aim of the researcher is to examine and find the significance of electronic customer relationship management in online banking. Based on the case study and the questionnaire response the research questions can be examined and results can be obtained. 3.1.2: Designing the questionnaires: According to Saunders (2007) in order to do a flexible test the data collected from questionnaire and the reaction taken towards the data collected has a great extent, the researcher follows the Saunders statements as to design perfect data analysis a proper questionnaire must be designed. For a perfect data to compose one need a proper question and also data extracted from the questionnaire response will give proper data analysis. These data should be composed constantly. 3.1.3: Ethical issues of gathering data: As per Saunders (2007) variety of ethical issues are related with collected information, these ethical issues are dependent on the gathered data of both the qualitative or quantitative data. It is equally important that there should be a connection between the research problem, data collection and the analysis of the data. 3.1.4: Privacy and Anonymity: As per Saunders et al., (2007) privacy and anonymity are important to both organization or in person as it plays vital role in purchase access and meeting orders of an organization. According to Easter by -Smith in 2002 privacy and anonymity help in implication as research advancements for both the primary data collection and interviews. 3.1.5: Ethical issues: According to Saunders et al., most of the business studies and its research will always associate and maintain from the case of an organization which always guides to a series of ethical issues in a periodic manner. The researcher gets a contribution from the employees and customers of an organization while performing research in an organization or specific sector. With this the researcher can easily and analyzes the data as accurate information or primary data obtained. Researcher/Interviewer The researcher must be clear about the information required and based on that researcher designs a question. Respondent The question is decoded by the respondent in a way the researcher is intended. Researcher/Interviewer Researcher decodes the answer to analyze the data. Respondent Respondent answers or encodes the question Source:http://books.google.com/books?id=DKvOhRaTeXcCprintsec=frontcoverdq=foddy+1994source=blots=MNnxaHHFLWsig=KVEQmF2wgTvf9NJbRoiCw68EXNghl=enei=dq9xTNGSBtCPjAfXwLyoDgsa=Xoi=book_resultct=resultresnum=5ved=0CCcQ6AEwBA#v=onepageq=foddy%201994f=false Mainly types of questionnaires involve the grouping of release and blocked questions. Questions with comprehensible phrasing and also with provisos are probable to be recognizable, and understand by means of, by which the reactants can progress the strength of the questionnaire. From time to time release questions can be referred as open ruined questions (Dill man, 2000), and also reactants give the respond in their personal way (Fink, 1995a). 3.1.6: Data Used: In this research, the researcher has used both the primary and secondary data analysis. The researcher has used both qualitative and quantitative data analysis where both of them are having the potential as well as weak points (Smith, 1975).in this research the researcher has concentrated on both the primary data and the secondary data, In an organization point of view the researcher has taken a case study for the analysis of eCRM in online banking and questionnaire response was takes as primary data research. 3.2: Mechanisms Used: 3.2.1: Questionnaires: The researcher has circulated x number of questionnaires to the bank customers among the students of University of Salford, in which I got x number of responses. And these responses are analyzed for the accurate data required by the researcher. These questionnaires are best explained in the next section. 3.2.2: Data Presentation and Analysis Techniques: The researcher approaches Microsoft Excel for data presentation and presenting the questionnaires to the customers and also to differentiate the questions. Researcher has designed the semi structured graphs with respect to percentage ratios of customers response to the questionnaires. This avoids the confusion with the data analysis and helps researcher to frame and analyze the response data easily. 3.3: What is research question and objectives? 3.3.1: Research question: Whats the significance of eCRM in online banking? 3.3.2: Research Objectives: How eCRM implemented in online banking What benefits customers and banks achieve by eCRM technology in online banking To evaluate the eCRM technology implementation in online banking. 3.4: Research Design: As per Saunders (2007), research plan can be of how well the research questions can be responded and also significantly defining the research question, where it cannot be overstressed much. Research plan also includes the main objectives which are designed from the research questions by identifying where the data is collected from different sources and also considering the constraints as well as ethical issues between design and strategy. 3.4.1: Research Philosophy: According to Saunders (2007), the research philosophy is outlined because it has taken significant assumptions and also it regards the way from where the researcher wishes to vision the world. As per this, the main authority of process is likely to be mainly concentrated on the relationship between understanding the customers and the process on which it has to be improved. There are 3 ways of thinking in the philosophy of research. Axiology Epistemology Ontology(Saunders et al., 2007) Each and every approach differs in a way such that they have their own research procedure and the business situations of management research which are not only compound but also exceptional. (Saunders et al.,, 2007). 3.4.2: The Research Paradigm , design and methodologies: 3.4.3: The research Paradigm: Based on the examination and expressing form of research methodologies, the researcher obtains a qualitative and quantitative methodology of research paradigm. Effective and concentrated data is obtained by the qualitative research and over a specific period of time numeric data is obtained by quantitative analysis in natural settings. Surveys, surveillance, and interviews etc are the data gathering techniques involved in the collection of data. (Maykut et.al, 1998). 3.4.4: Epistemology: Interpretivism can be part of epistemology perspective as it advocates the necessity of the researchers to understand the differences between humans and their role as social actors (Saunders et al, 2007). In this epistemology the researcher must be in an empathetic stance, where the researcher needs to go into the world of their research subjects and from their point of view must be understood. This approach can be considered because it differentiates the subject matter between social sciences and the natural sciences. A different logic research procedure is implemented by Interpretivism as it reflects the distinctiveness of humans as against the natural order. http://www.essayforum.com/essay-writing-feedback-3/qualitative-research-methods-coursework-review-1952/ 3.4.5: Positivism: The research philosophy also produces the main factors of Positivism and this can also approve the philosophical situation of the natural scientists. Where positivism can be favored as working within the reality of social society and Physical and natural scientists produce researchers by the generalizations of end products (Remenyi et al. 1998). Positivism emerged due to the speculative philosophy inability to solve the philosophical problems which have been a raised as a scientific development. 3.4.6: Realism: In Realism scientific analysis is narrated when this is considered as one of the epistemological situations. Showing exactness of the objects that are having continuous self governing of the brain of human can be the exact meaning of Realism. Bringing up the actuality fact in which objects are of self determining of the human is the main history behind realism. The expansion of advance scientific information by realism can be part of epistemology which is related to positivism. (Mark Sanders et al., 2007). 3.4.7: Interpretive: The dissimilarities between the human beings and social performers is recognized by the supporters with the help of interpretive .Interpretive is also considered as a part of epistemology Interpretive is also called as symbolic interactions. Interpretive can be considered as sociological paradigm which differentiates by conducting research between humans and the objects like computers and automobiles. Understanding in an exact way and take action out in agreement is done in dramatic inventions where actors play a major part of role.(Mark Sanders et al., 2007). 3.4.8: Ontology: The philosophical study of nature of being or existence or reality is said to be as Ontology. Greater extension of the epistemological deliberations is considered when they move up the research questions of the supposition that are going to be included and regards of the work and the way the world work. Dedication is supposed to exist in different methodologies. Illustration of the supporters in the middle of business and researchers placed in management are two main features of Ontology. The first and main feature of ontology is about the objectivism.(Mark Saunders et al., 2007) 3.5: Research methodologies: 3.5.1: Qualitative and Quantitative: According to Zikmund (2000) any research should be qualitative or quantitative. Selectivity of approach based on the research objective is considered as quantitative research where as qualitative approach is based on the subjective nature of the research and this is also related to the case studies which are nearly related to the research objective. By conducting proper analysis which includes interviews, questionnaires, feedbacks, e-mails helps in answering the questions like why and how , which is considered as quantitative approach (Miles Huberman, 1994). Research papers and case study analysis are considered as qualitative methods of approach, where the main aim is to receive the information and there by understanding the research problem. From the above discussion it is clear evident that researcher gets the accurate data and also finds flexible to understand the research in particular. Thus quantitative research gives the researcher better idea of studying the objectives of the research rather than just generalizing them. 3.5.2: Research Strategy: Based upon research strategy there are different types such as experiments, surveys, observations, questionnaires and case studies. (Yin, 1994). 3.5.2.1: Experiments: Experiments conducted in any business have good perspective in establishing effective relationships. These experiments help to pick up a variable and allow controlling the other two likewise. Controlling circumstances leads to pick up one or more variable which can be operated to test a hypothesis, but controlling of circumstances is achieved by conducting experiments. (Zikmund, 2000). According to Yin (1994) this research study doesnt suit the experimental research strategy as it doesnt have control over the behavioral events. 3.5.2.2: Case Studies: In these case studies the researcher obtains the data from one or few similar situations in their research area of work. The case study explores the whole organization and this is main advantage of the case studies research strategy. An empirical examination of a definite event within the context of the real world can be considered as case study research strategy (Saunders et al., 2003). This approach also produces solutions to how, why, and what questions (Yin, 1994). In this research the researcher also choose the case study analysis within the organization point of view. 3.5.2.3: Observations: Observation strategy is much used in research by using the written or recorded data (Zikmund, 2000). One of the major advantages of the observation technique is that it records the behavior without relying on the respondents reports. The data collected is discrete and passive where respondents are not involved, it can often be considered as non -reactive. 3.5.2.4: Interviews: Face to face interview or questionnaire sent or formal surveys with structured questions are different types of interviews. (Yin, 1984). The researcher has chosen this method of research strategy such that researcher can analyse all the bank customers responses. The researcher has mainly chosen the survey methods by collecting data from the bank customers with help of questionnaires on the data sheets. Here the survey methods are implemented as this is convenient and inexpensive for the researcher to obtain the accurate data required for finding the results with respect to the literature review discussed. The survey methods can be of different types based on the objective of the organizations, the different sampling methods used in this research by the researcher are offline and online survey methods with questionnaire add to them. Offline survey: Convenience sampling method is one of the easy and inexpensive methods used in this research as it inexpensive, time saving and also it can obtain accurate data without spending much money. These also have the drawbacks but the implementation of convenience compensates other disadvantages. Probability sampling methods are expensive and time consuming when compared to convenience sampling methods and therefore the researcher has chosen convenience sampling method .However, before having the offline survey all the respondents must have following criteria to answer the questionnaire. Must be student of University of Salford. Must be familiar with internet so that they can be able to use internet banking service. The main aim of this offline survey is to obtain results from x number of students from different universities. Researcher also attempts to have survey from both the males and females for obtaining the valid data. For this approach, the researcher approached students of different universities to obtain the results by getting responses to the questionnaires in the data sheets. The time taken for having interview with respondents is less than two minutes to get the response data. The disadvantage of this kind of research method is the researcher can only obtain results to few students from different universities where this data cannot represent all the students of different universities in UK. Thus to overcome this kind of approach the researcher attempted online survey which did not limit the geographical representation of the respondent, which cannot be the negative issue of the research. By comparing these results from both online and offline surveys the researcher has drawn the conclusions. The questionnaire for the offline survey is presented in the appendix. Online survey: In this research the self satisfaction sampling method was used to obtain the results from the students. This method helps the researcher to get the response from different students from different universities in UK. Before this research the respondent must satisfy this criteria: Must be university student (full time) Must know the internet banking to answer the questionnaires. The main aim of the researcher is to obtain results from the students of different universities through the online questionnaire response. The researcher had designed in the questionnaire in http://www.surveygizmo.com/ and sent this online questionnaire to the University of Salford and various university students with the covering message to the respondents regarding the questionnaire response. The questionnaire was advertised on http://www.surveygizmo.com/ to obtain results from different students of different universities where researcher has friends in different universities. The researcher mainly concentrated on University of Salford, University of Manchester, University of Bolton, Liverpool Hope University and also students from different universities in UK through online questionnaire. The research questionnaire is presented in appendix. The questionnaire was sent to different students and out of them X number of responses were received in which only Y number of responses are valid as the customers cannot understand the questionnaire and this data was analysed using the reports from the response of the customers of the banks. Thus the online questionnaire was distributed to different students through university discussion forums or through the university administration network which took less than 10 minutes for the students to answer the questionnaire. The main Problem faced during this research is designing the questionnaire in the online survey website. The other problems are like students responding to only few questions and not to all the questions. 3.6 Ethical issues of Data Collection: There are few ethical issues occurred in this online survey. The online questionnaire doesnt have any personal data rather than the age and gender of the respondents. This is because the researcher attempted to compare results among different age groups among males and females. Here the main ethical issue is that the respondent answers the questionnaire only if that doesnt have any personal data questions such as name, address, mobile number etc. Thus the respondent answers the questions honestly with the belief. Due to fact that personal banking is a sensitive issue for many people, the researcher has mainly concentrated on subject related questions rather than personal data collection such as income, how often do they bank or any other personal questions which could affect the respondents response. |According Saunders et. al., the research should not embrace the population or any other material disadvantage. Here all the necessary precautions are taken to get response from the university students and results are analysed for the conclusion. Here the researcher did not offer any incentives to the respondents in order to get the response from different university students.