Impact of Customer Relationship Marketing on Market Performance in Banking Sector – A Study on Bank of Ceylon and Hatton National Bank Customers in Mannar District in Sri Lanka

Abstract

Customer Relationship Marketing (CRM) is widely acknowledged as a powerful tool ingaining market Performance in banking sector. However, little attention has been paid to thisarea. The purpose of the study is to examine impact of customer relationship marketing onmarket performance. For this study, Customer Relationship Marketing is evaluated by trust, communication, commitment, and promise. Market performance Assigned through thefollowing variables customer reputation, customer loyalty, and marketposition. For this studyconvenience sampling techniques has been pursued to collect data. 100 questionnaires weredistributed among customer of the Bank of Ceylon (50 questionnaires) and Hatton Nation Bank (50 questionnaire) in Mannar district in Sri Lanka. All questionnaires were received from the customers. Correlation, regression, CronBach Alpha, and descriptive statistics have been employed to test the hypotheses. The result revealed that the correlation value of 0.711 between customer relationship marketing and market performance. According to the regression analysis, market performance was impacted by customer relationship marketing by 50.6%. So, customer relationship assists the market performance commercial banks. Every commercial banks need to polish their customer relationship.

Keywords: Customer Relationship Marketing, Market Performance, commercial banks