The Impact of Customer Relationship Management on Customer Satisfaction in the Banking Industry –A Case of Jordan

Abstract

Due to the tough competition in the banking industry in Jordan, it is very necessary for financial institutions to build and maintain a strong relationship with the customers in order to achieve the ultimate goal of customer satisfaction. For this reason customer relationship management (CRM) has become more important in the service industry; especially in the banking industry. Therefore, the present study came to focus on the impact of CRM on customer satisfaction in banking industry of Jordan. The population of the present study is customers of Jordanian banks operating in Amman city, the capital of Jordan. 528 respondents were selected through convenient sampling and data has been collected through questionnaires which were self administered by researcher. The study proposed that there is no statistical relationship between CRM elements and customer satisfaction as a dependent variable. The statistical analysis revealed that there is a significant relationship between the independent variables( i,e CRM elements represented by service quality, employee’s behavior, customer data base, solving customer problems physical environment; and social network interaction) and customer satisfaction as a dependent variable in the services banking industry.

Keywords: CRM ,Customer Satisfaction, Banking Industry, Services Marketing, Jordan.