Extent of Technology Application in Customer Relationship Management Practices of Commercial Banks in Kenya

Abstract

In their new approaches to marketing, innovative organizational managers have moved to more humanistic and relationship-based models. Companies are realizing that their most valuable assets are relationships with customers and other key stakeholders. This implies that if a firm manages its customer relationships better than its competitors, it will not only succeed in retaining current customers but will also attract new customers. As a result of this new focus on marketer-customer relationships, and in consideration of the substantial competitive benefits and opportunities that are assumed to emerge, significant efforts have been undertaken in the business world to develop tools and methods that can facilitate the implementation of relationship marketing strategies. The recent past has seen a proliferation of hardware systems and software applications designed to facilitate the management of customer relationships. Technology-facilitated customer initiatives have been launched by many companies in every industry, by organizations large and small, public and private, profit and non-profit. This study sought to establish the extent of technology application in customer relationship management (CRM) practices of commercial banks in Kenya. An exploratory and quantitative survey research design was adopted. Data was collected from key informants using a selfadministered structured questionnaire. The descriptive analysis of the data revealed that the most engaged CRM technology by the commercial banks is real-time transaction processing and automated branch integration while the key drivers of the banks CRM technology were inferentially established to be real-time banking, electronic-based customer interactivity, and cashless transactions. The study has significant value to management practice and future research on the concept of CRM strategy