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THE IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER

SATISFACTION AND RETENTION: THE CASE LEBANON
Article in International Journal of Mental Health · April 2020
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International Journal of Psychosocial Rehabilitation, Vol. 24, Issue 06, 2020
ISSN: 1475-7192
THE IMPACT OF CUSTOMER

RELATIONSHIP MANAGEMENT ON
CUSTOMER SATISFACTION AND
RETENTION: THE CASE LEBANON
1
Dr. Saher Al Annan, 2Dr. Hani Haidoura, 3Mr. Khodor Shatila, 4Mrs. Marina Alozian
ABSTRACT-For various reasons, the execution of a CRM system is likely to have an impact on customer
satisfaction and customer information. Similarly, the implementation of a CRM approach is likely to affect
customer satisfaction and customer knowledge. CRM ensures customers return home with a smile and improves
the relationship between the organization and its customers. Such activities strengthen the bond between sales
representatives and customers. The research implemented the quantitative methodology throughout distributing
the questionnaire over 100 bank customers. The data was treated using the SPSS statistical tool throughout
descriptive and inferential statistics. The research findings proved that there is a direct relationship between
customer loyalty and customer satisfaction and CRM technology, the higher the CRM technology had been
implemented the higher the customer satisfaction rate will be.
Keywords- CRM, Customer retention, Technology, Alignment, Satisfaction
I GENERAL BACKGROUND ABOUT THE TOPIC
Customer Relationship Management (CRM) is described as an approach to managing the engagement of a

company with current and potential customers through creating a trustworthy partnership. It is focused on data
analysis and an evaluation of the company's history to build better relationships with customers, focusing
specifically on customer retention and ultimately increasing revenue.
The CRM program, which compiles information from various communication channels such as the web of a
client, the phone, e-mail, the live chat as well as resources in addition to social media, is a primary aspect of the
CRM strategy. By the CRM methodology and the tools utilized, businesses understand how to better meet their
needs and their target audiences.
CRM systems allow businesses to communicate independently and at relatively low cost with large customer
groups. In doing so, businesses may gather individual customer experience and then use it to formulate custom
solutions and develop relationships that are mutually beneficial. Such approaches enhance the operational
excellence of the headquarters of companies and provide the ability to develop customer relations.
1
Saher H. El Annan PhD, Arabl Open University Tayouneh Omar Bayhom Street- The Park Sector Badarp-Beirut-2058-4518-Lebanon-
00961/392139
2
Hani Haidoura PhD, Kirovograd national Technical University, Ukraine, [email protected]
3
Khodor I. Shatila. Research and Development Specialist, Email: [email protected]
4
Supply Chain Manager, Bycop SAL, Email:[email protected]
Received: 22 Feb 2019 | Revised: 13Mar 2019 | Accepted: 05 Apr 2020 6099
ISSN: 1475-7192
The CRM approach aims to provide consumers with better benefits and to build good consumer connections.
Throughout fact, it allows to monitor the engagement of the business with potential customers.
Nonetheless, several businesses do not have a primary concern in customer relationship management. CRM
is concerned primarily with only those companies that are customer-focused and engaged in building long-term
mutually beneficial relationships. Some businesses would like to personalize the client. The client is the most
important reason for the company's success and is used to develop the objectives and business model of the
enterprise.
In the services industry CRM is mostly needed, since it depends heavily on the individual client to pursue an
intimacy strategy. CRM systems are based on IT software to make this partnership simpler.
We help to manage consumers effectively across various points of contact, to evolve in creative systems and to
learn individual customers and to provide them with tailor-made solutions.
The banking sector is a key component of the services sector. The general theory is a constant battle to gain
market share and to draw the most clients owing to a tough competition in this field and the badly separated
product of banks. Adequate customer relations management in this situation is an important tool to achieve better
results, forcing banks to implement the CRM program to help achieve their goals (Cvijović, Kostić-Stankovic
and Reljic, 2017). CRM helps identify and convert future customers and helps develop new relationships based
on past track records and new customers.
CRM software covers a broad range of systems designed to support enterprises in the control of many
following business processes: client records, consumer engagement, entry, business information, electronic sales
channels, marketing leading contracts, customer support, communications, vendor support, supplier partnerships,
awareness of staff, and preparation for a wide range of companies. While CRM software is used most often for
handling an arrangement with a corporate partner, CRM software systems often function as a method to monitor
business contacts, staff, clients, award winners and sales managers.
II NEED FOR THE STUDY
The implementation of a CRM program can impact customer satisfaction and customer information for
various reasons. Likewise, the use of the customer satisfaction and customer experience strategy is prone to
effects.
CRM guarantees that its customers come home happy and strengthens their interaction with their consumers.
The relation between sales representatives and clients is reinforced by such activities.
Customer satisfaction has important consequences for the economic performance of banking companies as
customer loyalty and use behavior can be improved and customer complaints and client defection risks are
minimized. Customers are more effectively supported by customer relationship management systems and more
reliable data in day-to-day operations. When different problems require fewer meetings with the client, customer
satisfaction improves.
This research aims to examine the effects of CRM in Lebanon and how it helps the company in pursuing its
dream of reaching global customer satisfaction excellence. In Lebanon and in particular Bank XBANK X, a
similar study has not yet been completed.
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III PURPOSE OF THE STUDY
This paper seeks to figure out if introducing the CRM program impacts consumer trust and faith in their
banks and increases bank accountability with their business.
The purpose of this analysis is to develop the parameters in relation to the work process for measuring CRM
reliability. Measuring business process efficiency is becoming a key issue for the organization to achieve
efficient and successful outcomes.
Working out if CRM increases banking accountability with its customers is a very important question for
banks in terms of customer rights and duties (R&D). Banking openness seeks to provide consumers of all levels
of their interactions by way of language consistency, clarity of data concerning the same product / service with
simpler and understandable details.
Another topic that could shed light on the progress of CRM implementation in improving the partnership
with the bank and that its trust and loyalty is to research consumers ' views about the program, emphasizing their
opinions for accurate information on their specifications.
IV THE CONCEPT OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Since the early 1920s, the value of customer relationship management has been a known concept.
The definition covers a number of key issues of organizations: fostering excellent customer-market
interaction, the value of customer retention, customer buy-out and long-term customer relations. CRM operates
on a concept of productive relationships between organizations and consumers. (Omar, Nazri & Musa 2007).
This is the basis for all management and marketing practices.
CRM is growing rapidly in today's world, as its value is recognized because of the problems facing
businesses. Particularly organizations that move from conventional channel setups are extremely important. The
popularity with CRM may be due to the fact that it applies itself to all aspects of an enterprise, from publicity,
distribution, selling, and accounting, from structure to activities concerned.
CRM guarantees that all factors which are important to the success of faithful and successful clients of a
company are protected. To do so, the best consumers must be sought and the correct products and services
provided in them. To order to be successful, time, expense and contact networks must also be synced according
to the CRM system. The many facets of CRM are very important in helping a business better concentrate on its
clients.
The CRM concept is only feasible due to technology advances that have greatly influenced business domains
and facilitated contact with consumers by providing an arena where information is available to establish
successful consumer management strategies (Mostert, Meyer & Rensburg 2009).
In many aspects it has to be said that it is necessary to promote the future development of CRM and its
programs. A simple system helps tremendously in developing ties with customers.
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CRM AND THE ORGANIZATION

The primary goal of Company Customer Relationship Management (CRM) is to evaluate company
experience details and improve business relationships among company clients while eventually increasing
customer retention levels. Via CRM, businesses learn about the desires of their clients by collecting customer
data, and analyzing their communication channels such as social media which are used internationally to
understand their needs. CRM is able to collect all of its consumers ' details and track and interpret customer
interactions throughout its life cycle using its elements, techniques, processes and technology. CRM tools are
also used to simplify operations in various fields, including monitoring and research, customer support,
marketing and sales.
The basic dimension principles of CRM include:
 Formation and maintenance of mutual loyalty between customers and the company
 Constructing customer interaction
 The use of direct techniques of marketing
 Customer relationship personalization.
The idea that these foundations increase efficiency and reduce costs associated with customer interactions is
significant. The foundations also help to increase speed and efficiency in the decision-making process.
CRM is an important management resource for an enterprise to be effective.
The consumer management system should provide a conveniently flexible and effective information
technology infrastructure in order to store customer details and information. (Chen & Popovich, 2003) It is also
essential for the customer management system to be comprehensive CRM in order to communicate directly with
customers. It should be remembered that the quality of information it offers is essential to update technologies in
the interaction a company establishes with its customers. (Zablah, Bellenger & Johnston, 2004) Management is
able to demonstrate its dedication in different ways. We should take part in activities which demonstrate a strong
commitment to applying CRM. Through promoting the application of CRM, however, through providing a
corporate framework that embraces CRM as an efficient business practice.
Management determines how everyone in the business views the change within the organisation; thus, the
corporate execution will be sure if the management will view CRM as a non-volatile approach path for a
corporation.
Management must also realize how important the workforce is to the effectiveness of CRM. Furthermore, if
they are to serve the customer's needs through the employees, that partnership must be properly managed. In
many businesses, workers are often those who persuade a client to purchase a service or products.
It is also very important to ensure the team was interested in developing the CRM program instead of forcing
this on them as they have extensive knowledge and confidence and therefore can have a positive effect on
consumers (Heskett et al. 2012)
Given the importance of CRM for the workplace, the role of organisation's management is to make sure that
they develop policies which will help make the CRM effective. They are liable for formulating policies. The
corporate managers should also understand and know about CRM as they build strategies that enable to fully
integrate CRM into the performance of the enterprise.
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We are also responsible for promoting the growth of CRM. It also should be necessary to solve the problems
so that they can continue to lead the team to the expected goals if problems arise through execution.
The workers also have several roles to play when applying the CRM. To promote collaboration in
understanding and execution with a view to achieving company objectives, it is critical that all facets and
approaches are identified and recognized by CRM, the corporate philosophy and the expected ambitions and
awareness and information about the value of a strong link between the enterprise and the customers.
The most difficult part of the CRM is trying to change the mindset at an organizational level and get the
workers through a new culture of connectivity to accept the new ideas of CRM. A partnership arrangement
should be formed, a team from various disciplines and positions generated as well as coordination functions, so
that this is achievable through key working frameworks.
Both executives from supervisors have to invest in the project to excel in all this. (Brussels, Brazil, 2011).
The goals and objectives concerned should now be fully understood on CRM by all workers. You will also have
an important knowledge of customer-oriented support.
The reason that a lack of high level managers ' presence is very important to the success of CRM can be
related to the vulnerability in particular to the fairly costly and time consuming implementation of a CRM
program. In many instances, set sales goals are not achieved, so expenditure overruns in most CRM programs are
happening.
In the case a CRM crashes, it is possible to reverse it. It ensures the goals are both updated and improved.
Objectives for the correct allocation of resources should also be reassessed and prioritized.
A CRM approach will not succeed unless the entire organization is fully involved and dedicated. Everyone
should have a clear role in the execution, because valuable information can be missed because people do not
understand their particular role.
CRM and Customers

CRM is critical because it provides a company with many communication opportunities and no longer relies
on regular data collection surveys because CRM becomes an ongoing process. This can be achieved by
purchasing and consuming data as well as information any time they buy and sell (Voon,2011). This is
accomplished via the buying and consuming actions.
CRM also makes an enterprise more competitive. At first, a company may surpass gross margins but over a
time consumers became competitive. The company benefits from acquisition. This is by promotion.
It is also very relevant for the development of sales and market shares because it offers better opportunities
for growth of a customer's business as well as for a growing brand value (Nek, Yunus, 2009), because of the
positive effect it has on consumers it is also useful to many companies, who continue on with their technologies.
Customer satisfaction
There is no doubt of the value of customer satisfaction. Customer retention is much better than new
customers. For a business, it is therefore important that a company keeps its consumers. It makes it important to
please the consumer in a business. What is the happiness of customers?
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It is described as a communication term to help you know how an organization's products or services meet or
exceed the customers ' expectations.
In the product or service time span, it can be often defined as satisfying the customer's needs, desires and
wishes.
Satisfaction of clients is important because it helps business owners and executives control and develop their
organizations.
Another advantage is that customer satisfaction in a competitive market environment, in which firms will
compete for customers, is seen as a key differentiator. Consumer information is valuable because of the potential
of Kotler (2009) to recognize possibilities for process improvement and product advancement, and assessment
and incentive schemes. It is also important to insure the survey projects fully concentrate on client-critical issues
(Masroujeh 2009).
The customer reaction and the measurement of the perceived disparity between the previous impression and
the actual performance of the commodity observed after ingestion is (Thomas, Blattberg, & Fox, 2004).
Accordingly It usually means that when companies meet customer satisfaction criteria, consumers are not happy
if the services offered are worse than anticipated.
The satisfaction of customers is also described as an assessment that the interaction with purchase was as
good as it should be. Satisfaction is not simply a response, but an emotional reaction to interactions of certain
products or services, retail outlets or molar behavioral patterns such as the purchaser's behaviour, and the market
overall.
The psychological state, which results in unclear perceptions and customers ' previous emotions about a
consumer experience, is another concept of customer satisfaction.
In other terms, customer satisfaction can be defined as happiness responses that a consumer loves while
dissatisfaction is an unwelcome fulfillment. Any customer experience is subject to a quality evaluation of goods,
facilities and processes.
Customer acquisition
In the monitoring of consumer life cycles, customer acquisition is the first phase. It applies to modern
customers ' strategies.
As a boss, they also carry in what they do when they try to build a reliable foundation for customers. The
purchase usually consists of three important decisions, including the candidates, the way contact will be
conducted and which offers to them. The process of defining, addressing and developing new connections
between customers is known (Fisher, 2001) as a method.
As an investment is about to be completed, it is very necessary to choose options with which the most
important customer can become strategically important.
One of the most important steps of Customer Relationship Development is the selection of the correct
consumer and strategies for figuring out more about the new customers. The condition of a company influences
the value of the retention of consumers. In the business acquisition an existing entity is not as involved as a new
one, so it is quite subjective to where an organization stands. A number of problems are of interest in the
retention of consumers.
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For the purposes of customer acquisition, the current costs in customer purchases in the company's main
market must be calculated and the costs in the individual customer segments must be adjusted. Customer
acquisition is the critical activity for the lifecycle management, because customer retention without customer
acquisition as a precursor is futile and wasteful.
There is no disputing the value of customers in a business. Both companies concentrate on consumer
purchases when a new product is introduced. No new start-ups with anything. It is very important for start-up
companies which want to concentrate as much on the acquisition of customers as they do on maintaining. The
influence of a single customer in a company is overwhelming.
A business can only gain more new customers; a failure of one client can have devastating effects on a
company (Cronin & Brady, 2001). Customer acquisition is always important in the face of the natural attrition.
Objectives, platforms and deals often form the basis of questions when an investment strategy is queried.
If a company has a customer acquisition strategy, knowing the difference distinctly from the maintenance plan is
very critical. It is important to remember that both proposals have as much similarities as they are different, as
they are both funded together.
Customer Retention
As previously stated, customer retention is better than losing them (Gee, Coats & Nicholson 2008).
Therefore, it is a very significant management problem, especially when a company is exposed to competition by
other organizations or to the lack of new customers. It is so important that it cannot be overlooked since it is very
important for an organization's existence. Customer retention is the foundation for partnership management
because of its capacity to deliver superior economies.
The phase in which a marketing company plans and activities are targeted at already existing customers can
be defined as trying to define the customer acquisition. (Diamantopoulo, 2006). It is therefore clear that building
long-term customer relationships and customer satisfaction are important aspects of a company. It would be
impossible to focus on profitability if there were no customer satisfaction. (Saint-Joseph, 2004).
To further recognize how crucial it is to retain clients, companies will realize the dynamics of their
businesses ' retention and the financial impact that this has. One of the expected outcomes is that productivity is
always reached with every retention of customers. The value of customer retention is evident in CRM (Gupta,
Lehman & Sewart2004). When loyal customers to a business create a long-term relationship with the company,
prioritizing its services or products consistently, as well as promoting the services and goods of the enterprise to
other interested parties. So long so you offer a better deal for gods and resources to an entity, consumers will
always give you preference.
Price is important, and it is helpful for your company to have customers understand and see price.
Organizations spend a great deal of time and attention trying to acquire new customers while seeing the
advantages while deciding to do their best to keep their now existing customers to ensuring their overall loyalty
in order not to lose them. Often organisations concentrate where they should not and neglect the basics. Creating
long-term customer relationships is more valuable than profits.
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CRM in Lebanon
Given the uncertainty of Lebanon's economic situation in recent years, several firms have realized the
importance of CRM in a competitive market. In fact, it is evident that CRM is being applied in a significant way
among small and medium-sized companies in Lebanon (El Saheli, Saleh; 2019). SMEs in Lebanon are, however,
now working in a complex environment with good to weak infrastructure, economic insecurity and sluggish
business activity. While the world remains complex and prone to transition, many companies locally and
globally are working aggressively against each other in small and large numbers.
V METHODOLOGY
This work is carried out in order to find the impact and customer satisfaction of the CRM application in the
Lebanese banking industry. Bank X is used as a case study to calculate this effect. Customer satisfaction metrics
are focused on the factors impacted by the bank's CRM implementation. Customers selected are clearly Bank
XBANK X customers for this report. The goals of the analysis and the theories proposed and the methods and
procedures used to reach a conclusion on the topic are discussed.
Research Question and Objectives

This research is to determine how much the CRM system implementation affects customers’ loyalty and trust
in their banks, and how it improves banks’ transparency with their customers leading to an improved satisfaction.
In this respect, the defined research objectives include the following:
 Determine the criteria to measure CRM reliability in relation to the work process
 Discover whether CRM improves banks’ transparency with their customers
 Find out the significance of client’s opinion about the system
 As a result of CRM implementation, analyze the level of trust between banks and their clients and the
resulting loyalty
Formulation of Hypotheses
Based on the research question and objectives the following hypotheses are formulated:
H0: There is no relationship between BANK X CRM program implementation and clients’
Satisfaction
H1: There is relationship between BANK XCRM program implementation and clients’
Satisfaction
VI RESEARCH DESIGN
A quantitative research methodology is chosen to address the research question and check the hypotheses.
This employs surveys methods to determine the level of happiness of 100 BANK X customers based on the key
criteria influenced by CRM implementations. A questionnaire had been adopted.
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The key data collected will then be reviewed in order to provide a clear indication of the good reception and
achievement of customers ' priorities in applying the BANK X CRM System.
Sample Selection
All Bank X customers in Lebanon are liable for this report. The survey consisted of 100 randomly selected
Bank X customers from branches in various Lebanese areas. This survey will reflect the Bank X community as a
whole.
Dependent and Independent Variables

The equation based is the dependent variable. The independent variables, which reflect potential reasons for
variability, are clarified and their influence on the dependent variable can be exploited.
Independent variables are divided into several constructions, namely: efficiency, organizational cohesion,
CRM technologies, customer retention and customer acquisition as well as demographic variables. In this
analysis, customer satisfaction is the dependent variable.
Data Collection Instrument

Information was obtained electronically, as discussed earlier. Utilizing emails to collect data, a Google Form
application is used to distribute the online questionnaire. This groundbreaking approach facilitates the creation of
targeted surveys on the basis of preferred parameters, which enable larger viewers to access the data so as to
analyze the results and perceive them efficiently.
The 25 questions were uploaded to create the survey, including a small paragraph that describes the intent.
The site then creates a connection which enables the survey to be shared through several social media platforms
and can be quickly sent to Bank X clients. When the respondent receives the connection, he or she is
immediately directed to the survey, and is able to initiate the survey. On completion, he taps and the responses
are sent.
It illustrates how the researchers allocate the administration of the questionnaire to their respondent and
collect the findings for further study. Facilities are operated by Bank X.
For study and evaluation of tests, collected data was entered in SPSS.
VII DATA ANALYSIS
Information from 100 respondents who answered the questionnaire was compiled. Studies include:
descriptive statistics, cross taboos, analysis and association studies. The aim is to confirm the assumptions and
evaluate the influence of the numerous variables which affect the satisfaction of the bank customers.
Cross-Tabulations
The object of the cross-table test is to research the relationship between various variables. This aims to obtain
detailed results to guarantee reliable outcomes. But the Chi-Square analytics attempt to examine a given meaning
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into the relationship between these variables. If the defined sense level is good, then a positive relation will be
formed and vice versa.
Employee Responsiveness v/s High Service due to Training Cross Tabulation
Table 1: High Service Vs High Responsiveness
I am receiving a high service because the Total

employees in the bank are trained
Strongly Agree Agree Neutral
The employees are highly Strongly Agree 34 20 0 54
responsive in satisfying the Agree 4 28 10 42

customers’ needs Neutral 0 4 0 4
Total 38 52 10 100
Chi-Square Tests
Table 1a: Chi-Square Statistics Test
Value df Asymp. Sig. (2-

sided)
Pearson Chi-Square 35.283a 4 .012

Likelihood Ratio 41.548 4 .000
Linear-by-Linear Association 30.329 1 .000
N of Valid Cases 100
Symmetric Measures
Table 1b: Phi and Cramer’s V Test
Value Approx. Sig.
Phi .416 .012

Nominal by Nominal
Cramer's V .294 .012
N of Valid Cases 94
Table 1 contrasts the association between employee reactivity and good customer services by preparation.
The Chi-square test shows the X2 level was 35.283 with a significance point of 0.012 below 0.05 and indicates
that these variables connect.
For the Phi Cramer study, a ratio of 0.416 indicated that customer service and efficient service are strongly
related through instruction..
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Services provided by the bank v/s Customers Satisfied by the service

Count
Table 2: Services vs Customer Satisfaction
Services Provided by the bank Total
Strongly Agree Agree Neutral Disagree
Strongly Agree 12 26 0 0 38
I am satisfied with the
Agree 6 38 4 2 50
services of the bank I deal
Neutral 2 8 0 0 10
with
Disagree 0 0 0 2 2
Total 20 72 4 4 100
Chi-Square Tests
Table 2a: Chi-Square
Value Df Asymp. Sig. (2-

sided)

Linear-by-Linear
13.771 1 .000
Association
Symmetric Measures
Table 2b: Phi Cramer’s V Test
Value Approx. Sig.
Phi .768 .000

Nominal by Nominal
Both factors are linked as the X2 displays a level of 55.435 with a value level of 0.000 which is less than
0.05.
As far as the Phi Cramer measure is concerned, there is a 0.768 ratio, which implies that the partnership
between the banks and the customer satisfaction with the services provided is high.
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Customer Loyalty v/s Information Traceability
Table 3: Customer loyalty v/s Information Traceability
The bank is able to track my information and feedback easily Total
Strongly Agree Neutral Disagree Strongly

Agree Disagree
Strongly Agree 16 20 0 0 2 38
I am loyal to the
Agree 8 22 8 0 0 38
bank I work with
Neutral 4 18 0 2 0 24
Total 28 60 8 2 2 100
Chi-Square Tests

sided)

Linear-by-Linear
1.977 1 .160
Association
Symmetric Measures
Value Approx. Sig.
Phi .548 .000

Nominal by Nominal
The interaction between customer loyalty and traceability of knowledge has been identified after the Chi-
Square study application, as the X2 indicates a rating of 28.204 and a value of 0.000 that is less than 0.05.
As for experiments for Phi Cramer, the association between customer loyalty and traceability of knowledge is
0.548.
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Bank Flexibility v/s Two Way Communication
Table 4: Bank Flexibility v/s Two Way Communication
Two Way communication Total
Strongly Agree Agree Neutral
Strongly Agree 12 8 6 26
There is flexibility in
Agree 8 46 12 66
dealing with the bank
Neutral 2 0 4 6
employees
Strongly Disagree 2 0 0 2
Total 24 54 22 100
Chi-Square Tests

sided)

Linear-by-Linear
.035 1 .851
Association
Symmetric Measures
Table 6b: Phi and Crammer’s V
Value Approx. Sig.
Phi .529 .000

Nominal by Nominal
The application of the chi-square test supports the relation between banking stability and two-way contact
since the X2 is 26.333 and less than 0.05 at the value point of 0.000.
For Phi Cramer, it indicates a ratio of 0,529, which implies the versatility and two-way contact are strongly
related.
Analytical Statistics
A chi-square check confirms the relation between the stability of the bank and the two way contact because
the X2 is 26.333 and 0.05 at 0.000 interest.
For Phi Cramer, the ratio is 0,529 and suggests a strong relationship between mobility and two-way touch.
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Regression
Regression analysis aims to study the relation between the dependent variable, and the independent variables
based on a significance level of 5%. If the significance level is less than 0.05, then the null hypotheses will be
rejected, and the alternative one will be accepted.
Model Summary
M R R Square Adjusted R Std. Error of the

odel Square Estimate
.
1 .347 .317 .561
a
589
a. Predictors: (Constant), Retention, CRM Technology, Organizational Alignment,

Acquisition
Table 7: CRM Factors with respect to Customer Satisfaction
Model Unstandardized Coefficients Standardized t Sig.

Coefficients
B Std. Beta
Error
(Constant) .890 .262 3.390 .001
Organizational Alignment .352 .105 .325 3.355 .001
Acquisition
1 .242 .107 .246 2.253 .027
CRM Technology -.356 .124 -.266 -2.870 .005
Retention .224 .116 .217 1.926 .057
a. Dependent Variable: Customer satisfaction

The regression rule states that if the margin of error is below than 5%, then the alternative hypotheses (H1)
will be accepted, as for the null hypotheses it will be rejected.
Thus, and based on the above analysis, the following can be concluded:
 There is relationship between organizational alignment and customer satisfaction (0.001)
 There is relationship between acquisition and customer satisfaction (0.027)
 There is relationship between CRM technology and customer satisfaction (0.005)
 There is relationship between retention and customer satisfaction (0.057). This is rounded down to 0.05 which
means to reject the null hypotheses and accept the alternative one.
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Validity and Reliability Analysis

The validity and reliability analysis are conducted to study whether the data are valid or not, and by that each
variable is considered in order to detect if there is any bias from each variable
Component Matrix
Table 8: Reliability Analysis of measured variables
Component
Performance .765
Organizational Alignment .811
CRM Technology .803
Customer Retention .863
Customer Acquisition .868
Based on table 6, and referring to the rule of thumb, if the coefficient is greater than 0.7, this indicates a
strong valid and reliable data, and if the coefficient is between 0.5 and 0.7, this indicates a medium strength of
valid and reliable data, but if the coefficient is below 0.5, then the data is not valid or reliable. Based on this rule,
the results can be explained as follows:
 The performance variable indicates a level of 0.765 which is above the coefficient of 0.7, which means that
the data is reliable.
 The organizational alignment variable indicates a level of 0.811 which is above the coefficient of 0.7, which
means that the data is reliable.
 The CRM technology variable indicates a level of 0.803 which is above the coefficient of 0.7, which means
that the data is reliable.
 The customer retention variable indicates a level of 0.863 which is above the coefficient of 0.7, which means
that the data is reliable.
 The customer acquisition variable indicates a level of 0.868 which is above the coefficient of 0.7, which
means that the data is reliable

Pearson Correlation
The Pearson Correlations test is practiced to test whether the relationship among the research variables is
positive or negative, based on an indicator called Pearson Coefficient.
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Correlations
Table 9: Pearson Correlations Test
Satisfactio Acquisitio Technolo Alignme Retentio
n n gy nt n
Pearson
1 .571** .100 .259* .346**
Correlation
Satisfaction
Sig. (2-tailed) .000 .339 .012 .001
N 100 100 100 100 100
Pearson
.571** 1 .187 .460** .300**
Correlation
Acquisition
Sig. (2-tailed) .000 .070 .000 .003
N 100 100 100 100 100
Pearson
.100 .187 1 .256* .370**
Correlation
Technology
Sig. (2-tailed) .339 .070 .013 .000
N 100 100 100 100 100
Pearson
.259* .460** .256* 1 .573**
Correlation
Alignment
Sig. (2-tailed) .012 .000 .013 .000
N 100 100 100 100 100
Pearson
.346** .300** .370** .573** 1
Correlation
Retention
Sig. (2-tailed) .001 .003 .000 .000
N 100 100 100 100 100
Based on table 7, the following relationships are highlighted:

 There are positive associations between all the construct variables mentioned in the table
 There is positive moderate to strong association between alignment and retention since the Pearson
Coefficient showed an indicator of 0.573
 There is positive moderate to strong association between satisfaction and acquisition since the Pearson
Coefficient showed an indicator of 0.571.
 There is positive moderate association between alignment and acquisition since the Pearson Coefficient
showed an indicator of 0.460
 There is positive weak to moderate association between technology and retention since the Pearson
 There is positive weak to moderate association between satisfaction and retention since the Pearson
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 There is positive weak to moderate between retention and acquisition since the Pearson Coefficient showed
an indicator of 0.300
 All other associations between the variables are positive but relatively weak since their
Pearson Correlation Coefficients are less than 0.300.
Main Findings
The main findings of the research can be stated as follows:
 The majority of customers (62%) who responded to the survey are relatively young (<35 years) and most
have a university degree.
 71% of customers who responded to the survey have a yearly income below K$24
 23% of respondents strongly agree that different services are provided by the banks to meet the customer
demands, and by that the customer satisfaction might increase leading to higher operations.
 The majority of the respondents (87%) consider that targeted communications are implemented to satisfy
customer needs, this tend to enhance the bank productivity and enhance its public image in terms of
responding to customers.
 21% strongly agree that they are aware about all the services provided by the bank through social media
platforms and frequent messages, which means that the bank was able to communicate its message in a well
effective and frequent manner.
 The majority of the respondents (81%) confirm that long term relationships takes place between the
customers and the bank and by that, the bank can maintain sustainable operations.
 Most respondents (85%) admit that the customers’ high value expectations are satisfied in the bank, and by
that the bank can enhance profitability.
 Based on the regression model it is clear that organizational alignment, CRM technology, customer
acquisition and retention do explain customer satisfaction
 Moderate to strong association is found between alignment and retention and between satisfaction and
acquisition. These represent the strongest associations among the variables studied.
VIII SUMMARY OF FINDINGS
The main results show that CRM adoption, organizational cohesion, customer satisfaction and profitability in
the case of Bank x have a direct relationship. all factors appear to be intertwined greatly since a regression
analysis indicates a margin of error below 5%, which implies that "crm implementation at Bank x has a positive
effect on customer loyalty and retention" and the non-existent theory is acknowledged.
Furthermore, the results are in line with a literature review of CRM research in various countries that have
improved customer satisfaction, engagement and retention with the introduction of CRM programs, adding to the
Bank ' s profitability performance.
Research results have showed that CRM continues to have an impact on the company's success as it is seen as
a means of keeping consumers up-to-date and improving performance with its latest products.
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Findings further show that a daily contact policy with consumers is introduced by the bank to keep them up-
to-date with new products and services. This is part of the CRM phase, which is targeted at pleasing customers
and enhancing the bank's public image.
In addition to the above findings, 81 percent indicated they understood all of the services the bank offered,
which means that the bank efficiently and quickly delivers the services to its clients.
IX LIMITATIONS OF STUDY
During the process of this report, the researcher encountered various shortcomings and hurdles.
The time it took the respondents to fill in the questionnaires and get back to me is one of the challenges
facing them and that can not be handled and monitored.
Work is only targeted at branches of the Bank X, and different results can be achieved by extending the same
work to various banks.
In fact, a quantitative rather than a qualitative approach is used because the target audience is only investors
rather than workers, so there have been no comprehensive interviews which have given further visibility into the
CRM effect on the bank and employees.
X RECOMMENDATIONS
Next, to enhance the current and expected quality of performance, a company must perform a CRM audit.
Most customers are looking for better management.
Various factors are responsible for improving efficiency between workers and customers, such as: good
relations with the customer, organisation and business processes, improvement of human resources capability,
policy execution, social obligation, workplace accountability, growth in productivity and many other facets.
Implementation of technologies is the fundamental part behind CRM. Computer and software programs may
allow the convergence of customer data into a single database accessible from various departments. For example,
consumer keeping, duration and purchasing process data can be broken down. Customer service is an ideal way
to follow clients in the case of Bank X.
Brand diversification is necessary and virtually unavoidable, and above all it must not be the same as the
rivals. The best way to achieve that is through understanding of and fulfillment of consumers ' needs.
Instead of simply raising money, banks can invest money in technological developments and reward
programs. Customer loyalty is a value-added to the business, which must be paid for the sale of souvenirs and
scholarships by supporting consumers in shows and events. This increases the bank's visibility.
XI PRACTICAL IMPLICATIONS
This study shows that CRM strategy and customer loyalty are strongly related to retention. Instead of
depending only on its resources, CRM must always be modified to achieve customer satisfaction.
ISSN: 1475-7192
In turn, corporate administrators will implement new CRM protocols for the practical usage, contact and
documentation of customer data. Such instructions must be combined with specific CRM targets and monitored
by the relevant agency.
The definition of the CRM company describes the steps to explain concrete results. Therefore, all consumers
must provide their personal information to support workers with smooth and efficient processes as clearly as
possible.
Managers must also establish strategies and consistent design points for the development and maintenance of
consumer acquisitions. They should also create a supervisory regulation system which allows them, across all
customer contact points and strategies, to closely track the achievement of customer association objectives.
One of the most significant and necessary aspects that bank employees should do is to constantly prepare
their clients to develop a strong and lasting relationship.
The CRM environment is a major issue and must be tackled for profitability-seeking organizations. The
argument is that a company should expend a reasonable amount of money on methods of consumer service to
inspire consumers. Yes, a faithful bank client adds to this organization's good reputation.
The benefit of CRM, because it documents the transaction history of the client recorded in the report, rising
the business overhead. Remember that great emphasis should be put on treating customers correctly, as the
consumer will switch banks quite quickly in today's world because of the intense rivalry and this could make the
existing bank failure.
Banks must therefore build CRM frameworks and approaches to attract and grow their clients. Such as:
 Creating playground places during the time their parents are completing their transactions.
 Sending birthday messages,
 Provide advanced and occasional rewards, for example for Easter and
Christmas seasons,
 Build a lasting relationship of trust and provide quality services that surpass their expectations.
Quality management is an essential element of today's government, so that consumers may feel satisfied with
convenience, comfort and security. Accordingly, CRM should be considered as an overall organizational strategy
not just a customer relationship management application, so that all employees become customer oriented. After
all, two-way flow is the customer information source. Customers will consequently be allowed to criticize how
they are treated by the organization. A weekly, quarterly or annual customer review report should be able to do
this.
XII FURTHER WORK
For other researchers undergoing a similar study, it is proposed to extend the scope of the research to the
different departments and services of a bank and possibly to consider other factors that may also enhance
organizational performance, such as:
 Financial performance
 Social concern
 Employee administration
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 Increase in profit
 Employee training
 Corporate development and plan
 Improving the capacity of human resources
CRM impact on customer loyalty as one indicator of bank performance is taken into consideration in this
research. However, the influence of CRM on the overall bank performance might represent an interesting topic
of research to determine the importance of its effect.
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Performance in Micro and Small Businesses in Ghana: The Moderating Role of Managerial and Marketing
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4. Ahmed, N., Ahmed, Z. & Ahmed, I. (2010), “Determinants Of Capital Structure: A Case Of Life Insurance
Sector Of Pakistan”, European Journal Of Economics, Finance And Administrative Sciences, Issue 24, Issn
1450-2275,Eurojournals Inc. Http://Www.Eurojournals.Com
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Retail Banking. Journal Of Financial Services Marketing, 9 (3),Pp.231-48.
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Services Industry. The International Journal Of Bank Marketing, 18(1), 2000, Pp 15-23.
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Market. European Journal of Marketing, 38(1/2), Pp.253-75.
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THE IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER

Article in International Journal of Mental Health · April 2020

Saher EL-Annan Hani M Haidoura

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THE IMPACT OF CUSTOMER

I GENERAL BACKGROUND ABOUT THE TOPIC

Customer Relationship Management (CRM) is described as an approach to managing the engagement of a

II NEED FOR THE STUDY

III PURPOSE OF THE STUDY

IV THE CONCEPT OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

CRM AND THE ORGANIZATION

CRM and Customers

Research Question and Objectives

Dependent and Independent Variables

Data Collection Instrument

VII DATA ANALYSIS

Employee Responsiveness v/s High Service due to Training Cross Tabulation

Table 1: High Service Vs High Responsiveness

I am receiving a high service because the Total

Strongly Agree Agree Neutral

The employees are highly Strongly Agree 34 20 0 54

responsive in satisfying the Agree 4 28 10 42

Value df Asymp. Sig. (2-

Pearson Chi-Square 35.283a 4 .012

Value Approx. Sig.

Phi .416 .012

Services provided by the bank v/s Customers Satisfied by the service

Services Provided by the bank Total

Strongly Agree Agree Neutral Disagree

Value Df Asymp. Sig. (2-

Pearson Chi-Square 55.435a 9 .000

Value Approx. Sig.

Phi .768 .000

Customer Loyalty v/s Information Traceability

Table 3: Customer loyalty v/s Information Traceability

The bank is able to track my information and feedback easily Total

Strongly Agree Neutral Disagree Strongly

Value Df Asymp. Sig. (2-

Pearson Chi-Square 28.204a 8 .000

Value Approx. Sig.

Phi .548 .000

Bank Flexibility v/s Two Way Communication

Table 4: Bank Flexibility v/s Two Way Communication

Two Way communication Total

Strongly Agree Agree Neutral

Value Df Asymp. Sig. (2-

Pearson Chi-Square 26.333a 6 .000

Value Approx. Sig.

Phi .529 .000

M R R Square Adjusted R Std. Error of the

a. Predictors: (Constant), Retention, CRM Technology, Organizational Alignment,

Table 7: CRM Factors with respect to Customer Satisfaction

Model Unstandardized Coefficients Standardized t Sig.

(Constant) .890 .262 3.390 .001

Organizational Alignment .352 .105 .325 3.355 .001

CRM Technology -.356 .124 -.266 -2.870 .005