Customer Relationship Management System In Mauritian Bank Marketing Essay

20 old ages back Mauritius was a fighting to do its topographic point in the Indian Ocean and to go recognized for its good established economic system. At that clip, non every new concern had the capital required to get down and spread out. This is where Bankss played an of import function in our economic system.

At the so clip, Banks did non hold a proper online system with their subdivisions. Customers needed ‘rendez-vous ‘ with Bank Managers before run intoing with them. It was a glamourous clip for bankers. Customers remained loyal to the bank.

With the development in engineering and with Bank of Mauritius enforcing on Mauritanian Bankss to be Y2K compliant, bank moved towards the execution of a proper Core Banking system to function their clients. And with the debut of ATMs and on-line banking, clients visit less and lesser their bank subdivision. The whole construct of banking has shifted. Customers now prefer bringing channels alternatively of branch base banking. This perfect Banker Customer relationship easy disappeared as the state grew, the client started to work with different Bankss at the same clip as the rivals kept on increasing.

As per latest figures of Central Statistics Office there are soon 21 fiscal Bankss in operation with a population of about 1.2 million out of which merely 45 % ( 548,300 ) are in the on the job category

We need to maintain in head, though a bank needs client ‘s sedimentation to work, its chief net income will be generated by recognition installations. This income will be generated by those 45 % . ( Not taking into history a little per centum of offshore concern )

If our figures are right, we have 21 Bankss that are contending for 548,300 employed people and out of which two elephantine Bankss have been established since 1838 and in 1973 severally.

The purpose of this research is to analyse the impact of Customer Relationship Management system in the banking sector and how it can assist in client keeping, cut down missed chances and heighten internal procedure therefore increasing profitableness.

The intent of this thesis is non strictly for academic intent. There is presently a demand to implement a proper Customer Relationship Management system ( CRM ) in the bank I am presently working.

Table of Contentss

1.0 Introduction

1.1 Introduction of the survey

The vision for all Mauritanian Bankss is to be the best bank for clients to bank with.

CRM is the construct of constructing a strong relationship with your client and doing certain that he comes back once more by supplying him with a high quality service.

CRM is an integrating of engineerings and concern procedures used to fulfill the demands of a client during any given interaction. More specifically, CRM involves acquisitions analysis and usage of cognition about the clients in order to sell more goods or services and to make it more expeditiously ( Bose. 2002. Pg 1 )

Customers are now more than of all time demanding a different relationship with their providers, pull offing a stopping point relationship has become a cardinal facet in presenting the concern ends ( Xu, Yen et Al, 2002 ) . With the addition in engineering available to clients today the universe has become a much smaller market place and the relationship an even more of import merchandising facet. Walton & A ; Xu ( 2005 ) explain that CRM is widely regarded as method of retaining and developing clients, through increased trueness and satisfaction.

Harmonizing to Drucker ( 1996 ) cognition is the lone meaningful resource and the lone existent competitory discriminator. Xu & A ; Yen et Al ( 2002 ) further province that successful companies will utilize client information systems to construct relationships on the degrees that clients want them, and by forming the information about each client a remarkable 360 degree position can be made of each client throughout the company no affair how many clients they have. Companies are besides recognizing they can more easy lock in clients by understanding their demands and viing with exceeded outlooks, something which CRM systems can assist form ( H. Kale, 2004 ) .

The realisation of the benefits of CRM are besides noted in the market of related package merchandise, in 2008 the CRM market reached 8.9 billion USD and to increase by about 50 % by 2012 ( Gartner Group, 2008 ) .

The survey is to look into how CRM will profit the bank I am presently working with.

1.2 Problem Statement

I have been in the banking sector for more than 13 old ages and had held different places get downing from Teller, officer and presently to be the Head of Business Solutions.

Presently the bank has expanded and merged with another sister company, information and client keeping has become amongst others the centre of gesture. Currently we could observe that information is being held in different systems and consolidation is a large concern. This has impacted on service bringing. Duplicate of informations and weightiness in procedure has strongly been felt within the organisation. Currently the bank does non keep a proper CRM system to turn to most of these issues and to minimise lost chances. Having highlighted this, a proper CRM will assist in accomplishing greater height by the organisation.

The focal point of most CRM systems harmonizing to Xu & A ; Yen et Al. ( 2002 ) is to help in the apprehension of clients. By warehousing collected informations about many different clients, prognosiss of both clients ‘ future purchasing tendencies every bit good as single client behaviour can be made.

Customer Relationship Management can besides assist in interrupting down the barriers between sections, something which can turn out to be rather hard, as in some houses there are even deep competitions between sections ( Edwards. 2007 )

1.3 Aims of the Study

As per Doran, G. T. ( 1981 ) , we need to see the following standards when puting up the aims

Specific – Aims are entirely related to the concern.

Measurable – The aim can be quantified. For e.g. Increase in net income amounting to Rs1 million alternatively of “ Higher net incomes ” .

Agreed – The parties who will be affected straight or indirectly by these aims need to be informed and besides have their consent.

Realistic – The aim should be disputing, but yet besides be accomplishable.

Time specific – The aim should be delimited by clip, holding a specific start and terminal day of the month.

The following aims have been identified for this survey:

Identify the benefit bank already implemented CRM have obtained

Determine the hurdlings and barriers in implementing a proper CRM

Measure the impact of CRM in the Mauritanian Banking Community

Determine the benefit that bank will obtained in implementing a proper CRM

1.4 Research Questions

The research inquiries in this proposal shall include but non limited to the followers:

How CRM has impacted on the internal procedure of Bankss

What are the barriers and obstruction for implementing a proper CRM

What are the chief benefit obtained for a proper implemented CRM

How far do bank staff hold on the benefit of a CRM

By how much has missed chances been reduced

1.5 Hypothesiss ( Assumptions )

The undermentioned hypotheses based on the aim of the survey have been formulated:

Hypothesis I:

Holmium: Banks in Mauritius do non hold that CRM improves their internal procedure

Hour angle: Banks in Mauritius do hold that CRM improves their internal procedure

Hypothesis II:

Holmium: Banks in Mauritius do non confront any barriers and obstructions for the execution of CRM

Hour angle: Banks in Mauritius face barriers and obstructions for the execution of CRM

Hypothesis Three:

Holmium: Banks ‘ Staff do non hold that CRM has ease their twenty-four hours to twenty-four hours undertakings

Hour angle: Banks ‘ staff do hold that CRM has ease their twenty-four hours to twenty-four hours undertakings

Hypothesis Four:

Holmium: Banks do non hold that CRM has reduced missed chances

Hour angle: Banks do hold that CRM has reduced missed chances

2.0 Literature Review

The thought behind Customer Relationship Management is non new ; even the earliest merchandisers knew it was a good thought to construct relationships with clients to maintain them coming back.

( Jobber, 2004 )

“ Customer Relationship Management ( CRM ) is a concern attack that integrates

people, procedure and engineering to maximise relationships with clients ”

Barton Goldberg, ISM, CRM Strategic Advisors.

Jobber has stated the demand for trueness because it is client trueness that will guarantee that the perennial purchase in made with your concern.

Harmonizing to Storbacka and Lehtinen ( 2001, p 5 ) the three chief pillars of CRM are:

Customer value Creation

Sing the merchandise as a procedure and it is the concern duty for developing client relationships

Offering clients the possibilities to make value for themselves.

With the aid of engineering and human resources, CRM will assist a concern to derive penetration into the behaviour of clients and the value of those clients.

For CRM to be effectual and bear its fruits, an organisation must invent an equal concern scheme that it will hold to follow.

The organisation must besides look at the different ways information about clients comes into a concern, where and how this information is stored and how it is presently used.

With an effectual CRM scheme, a concern can increase grosss by:

Supplying equal services and merchandises that are precisely what clients expect

Increase client service degree

Initiate cross merchandising

Supply the bank ‘s staffs with an excess tool that will assist them increase concern

Retaining bing clients.

Bringing new clients

Personalized service

Target the right client with the right merchandise

Aggressive selling

All elements are mixed in to increase and keep greater concern to client relationships. CRM has an impact largely on selling, gross revenues, and client service schemes. CRM helps make clip efficiency and nest eggs on both sides of the concern spectrum.

Through right execution and usage of CRM solutions, companies gain a better apprehension of their strongest and weakest countries and how they can better upon these.

Therefore, clients gain better merchandises and services from their concerns of pick.

In any concern, CRM will get down from the Back office and will travel throughout the whole company to make the front office. It is nowadays a must to set the client at the centre of the concern.

Customer experience is the sum sum of all the interactions a client has with your trade name during his client lifecycle. It has become the critical discriminator in today ‘s hypercompetitive, hyper connected planetary market place.

Differentiation based on merchandise invention is no longer sustainable because rivals can leapfrog feature/function advantages more rapidly than of all time. And distinction based on monetary value putting to deaths profitableness. On the other manus, research shows that 86 per centum of consumers said they would be willing to pay more for a better client experience.

[ 2011 Customer Experience Impact Report conducted by Harris Interactive ]

Bing now the Head of Business solution of the bank, I found it suited to execute this research in the Mauritanian market for implementing a proper CRM solution in the bank guaranting that the bank reap it ‘s benefit.

3.0 Research Methodology

This subdivision describes the methodological analysis that will be followed to turn to the hypotheses or research inquiries. It includes the research design, trying method, informations aggregation processs, research instrumentality and related informations analysis.

3.1 Research Design

Research design provides the basic way for transporting out a research undertaking so as to obtain replies to research inquiries ( Cooper & A ; Schindler, 2003 ) . A descriptive research design will be adopted for this survey since it involved aggregation of both qualitative and quantitative information by carry oning a study. The descriptive research design would therefore, do anticipations and analyze the behavior of the respondents with regard to the study.

3.2 Population and Sample

3.2.1 Target Population

A population is considered to be any group of people, events, or things that are of involvement to the research workers and that they wish to look into ( Sekaran, 2000 ) . The mark population for this survey will include Bankss in Mauritius and staff working in the banking sector.

3.2.2 Sampling Method

“ Sampling is the procedure of choosing units ( e.g. people, organisations ) from a population of involvement so that by analyzing the sample we may reasonably generalise our consequences back to the population from which they were chosen. ” Trochim ( 2006 ) . It is hence, of import to follow the appropriate sampling techniques and to plan the sampling method to understate any mistake or response prejudice.

The appropriate sampling technique that will be adopted for the survey will be the simple random trying technique so as to guarantee that each officer has an equal opportunity of choice since a simple random sample is meant to be an indifferent representation of a group

3.2.3 Sample Size

To find the sample size we need to cipher the necessary the sample size for a different combination of degrees of preciseness, assurance degree ( 93 % ) , and variableness. The degree of preciseness besides called as the trying mistake, is the scope in which the true value of the population is estimated to be. This scope is frequently expressed in per centum points, ( e.g. , A±7 per centum ) . A proportion of 0.07 indicates the maximal variableness in a population

Therefore the Solvin ‘s expression, as described below, will be used to cipher the sample size at 7 % degree of preciseness.

Where N is the sample size, N is the population size and vitamin E is the degree of preciseness

Therefore the sample size for this survey will be 68 on a population of 100.

3.3 The research Instrument

The research instrument for this survey will include a structured questionnaire to arouse relevant information from the respondents employ primary and secondary beginnings of informations.

Questionnaires have advantages over some other types of studies in that they are inexpensive ; make non necessitate as much attempt from the inquirer as verbal or telephone studies, and frequently have standardized replies that make it simple to roll up informations. Questionnaires are besides aggressively limited by the fact that respondents must be able to read the inquiries and respond to them.

An open-ended inquiry asks the respondent to explicate his ain reply, whereas a closed-ended inquiry has the respondent choice an reply from a given figure of options. For this paper, the questionnaire will include both unfastened ended and closed ended inquiries. The stopping point ended will consist of dichotomous, multichotomous every bit good as likert scaled information.

The questionnaire will dwell of some chief subdivisions such as

First subdivision will show the barriers and obstructions in implementing CRM

Second subdivision will indicate out the benefit obtained from CRM

Third subdivision will measure the impact of CRM in the Banking Community

3.4 Data Collection method

The pick of the informations aggregation method is influenced by the informations aggregation scheme, the type of variables involved, the truth required, the informations aggregation points and the accomplishment of the census taker. The links between the variables, its beginning and practical methods for its aggregation helped in taking appropriate method. Therefore, for the informations aggregation, the study method will be adopted given that the study involved a structured questionnaire given to respondents and designed to arouse specific information with regard to the aims of the survey.

Furthermore, the informations will be gathered by scheduling a meeting with the different targeted organisation where the questionnaires will be distributed to the different respondent and collected some yearss subsequently to let them to give the maximal information in a precise manner.

3.5 Validity and Reliability

Validity is defined as the extent to which differences in ascertained tonss reflect the true nature among objects on the features being measured and Reliability relates to consistence of consequences over a period of clip. Hence, consideration sing cogency and dependability will be taken into history for this survey.

3.5.1 Pre proving

Pilot testing is used to place and extinguish jobs before the chief study takes topographic point. 10 % of the sample size will be used for pilot proving prior to the informations aggregation stage. The pilot trial will be used to look into inquiries relevance, whether answering understands all inquiries, and logic of inquiry order.

3.5.1 Reliability of informations

Dependability of information is used to look into for internal consistence of informations which is measured utilizing ‘coefficient alpha ‘ ( besides known as Cronbach ‘s alpha ) .

Harmonizing to George, D. , & A ; Mallery, P. ( 2003 ) , the acceptable degree for the Cronbach alpha depends on what is being measured, with the general regulation of pollex being 0.7. Therefore, for the intent of this survey a Cronbach ‘s alpha of 0.7 or higher will be considered acceptable, and that below 0.75 was regarded as multidimensional

3.6 Data Analysis and reading

The information file will so be organized and analysed using the SPSS package version 16.0 or supra. Both descriptive and illative statistics will be used for analysis where descriptive statistics will include frequence, per centum, mean and standard divergence. Inferential statistics will include arrested development analysis, correlativity, qi square, T-test, ANOVA.

Significant trials will be conducted at 5 % degree utilizing p-value as index for both significance and hypothesis testing where ;

Index for significance

P-value less than 0.05 = statistical significance

P-value greater than 0.05 = no significance

Indexs to be used for hypothesis testing

P-value less or equal to 0.05 = reject Null hypothesis ( H0 )

P-value greater than 0.05 = do non reject Null hypothesis ( H0 )

4.0 Expected Consequences

The undermentioned consequences might be expected:

It is expected that Mauritanian Banks has benefited from CRM

It is expect that Mauritanian Banks has faced barriers and troubles in implementing CRM

It is expect that CRM has positively impacted on the internal procedure of Mauritanian Banks.

It is expected that figure of clients has increased

5.0 Ethical Considerations

In order to protect confidentiality, the information collected will non be revealed to others except in the signifier of processed data/information without detailing the individuality of the single responses. Relevant permission will be sought from the concerned governments prior to administrating the questionnaires.

6.0 Restriction of this survey

The restriction of the survey is that non all bank staff will react due to clip restraints. Besides merely Bankss where CRM has been implemented will be contacted. However, the informations collected from respondents will be analyzed and interpreted within the limited model allowed.

7.0 Decision

This survey will endeavour to show to my senior direction the benefit in implementing a proper CRM in the bank in order to aline back-office procedures and to leverage the usage of IT system. This proposal will quantify the impact on the concern in footings of client keeping and new offerings possibilities while cut downing lost chances. Decidedly this survey will convey a better penetration on the capablenesss of a CRM.

Decidedly greater net income would be achieved if the CRM is decently implemented and used.