Effects of Customer Relationship Marketing on Bank Performance in Nigeria: An Empirical Approach

Abstract

This paper examines the effects of customer relationship marketing on bank performance in Nigeria. The research addresses the major problem associated with the adoption of customer relationship marketing by Nigerian banks which eventually exposes banks and customers to intense competition. The study was carried out in Ojo Local Government Area of Lagos State, Nigeria and it was targeted a population of 150 employees and customers of selected banks. Survey research method was used and data from the study were drawn from both primary and secondary sources. A sample size comprising 50 employees and customers were selected using stratified sampling technique and random sampling techniques. Quantitative data from the study was analyzed through descriptive statistics. The result indicates that customer relationship marketing is an effective tool to measure banks performance. The finding also shows that CRM helps in increasing banks profitability and enhances improvement in banks market share. The research is of the opinion that banks should put in seasoned customer service officers with sense of direction towards satisfying customers in order to improve overall bank performance. The study recommends that adoption and management of CRM requires the involvement of everyone in the bank in order for it to succeed.

Keywords: Customer relationship marketing, competition, profitability, and customer retention