Customer Relationship Management in Banking Sector in Jordan

Introduction

Banking industry is considered as the most valuable in every country. This idea does not only promotes the critical idea of banking procedures or processes, but also in the idea of the building a strong customer relation. The banks and its other affiliates are doing financial strategies to cope with the various changes in the society and at the same time meeting the customers’ demands.

Background of the Study and Problem Statement

In the banking procedures, the idea of different marketing strategies is high lightened. The banks do this action to attract the customers and make business transactions with them. The best idea that every business leader have in mind is to continue attract the potential customer while on the other hand, retaining the existing customers. Banks are also businesses and as business they are also competing in the market. In the introduction of the CRM or Customer Relationship Management, the banks set another strategy in gaining the advantages.

Research Objectives

The study is composed of two important objectives in which the first is about identifying the existence of the CRM on both Islamic and regular banks in Jordan. Second, is to determine the effects of CRM in retaining the customers. In the study of the CRM, the banks for all over the world can help manage their own strategic views and approach that cannot only sustain the development of the banking sector but also establishing their effectiveness in the eyes of the customers.

Research Questions

The study is comprised of the questions which are all related to the main topic of the subject. The questions can help the entire study complete its gathering of evidences regarding to the effectiveness of the CRM in banking industry as well as in Jordan.

1. What are the applied strategies of the banks to retain or maintain their customers?

2. What are the procedures or processes that was changed due to the introduction of the CRM?

3. What are the improvements gained by the organizations since the changes are implemented?

Literature Review

CRM or Customer Relationship Management is very important in every organization. In banking sector, gaining the CRM is an important factor to ensure the steady streams of revenue through the maximization of their customers. The customers’ behavior towards the organization is given an importance and therefore, many businesses are developing the different aspect of their operation in order to achieve the CRM (Wahab, Noor, and Ali, 2009). Through the economic changes and globalization, different organizations are seeking an effective approach where they can establish strong relationship to their customers. CRM is very crucial to the success of the banks but can be an effective solution to answer the long-term focus for their customers (SAP, 2002; Liu, 2007).

Methodology

The applied method of the study is through the use of the questionnaires where it was handed to both customers and employees in two different banks. The first bank is categorized as the Islamic Bank while the other is being the regular banks. Through the use of the questionnaires, the study can determine the different perspective of the employee and customers in the establishment of the relationship between them. This method also allows the study to project the future outcome of the relationship and at the end the effectiveness of the CRM in the entire organization of the two different banks.

Conclusion

Organizations as well as the banking sectors can achieve the advantage over the idea of CRM by offering customized products, enhancing the value of their customers through their services and better accessibility. The banks analytical insights about the relationship between them and the customer can lead them to have better future and profitability.

References:

Liu, H., 2007. Development of a Framework for Customer Relationship Management (CRM) in the Banking Industry. International Journal of Management, Vol. 24, No. 1.

SAP, 2002. CRM for the Banking Sector. [Online] Available at: http://www.sap.com/southafrica/industries/banking/pdf/BWP_CRM_banking.pdf. [Accessed 08 Feb 2010].

Wahab, S., Noor, N., & Ali, J., 2009. Technology Trust and E-Banking Adoption: The Mediating Effect of Customer Relationship Management Performance. The Asian Journal of Technology Management, Vol. 2, No. 2. [Online] Available at: http://www.sbm.itb.ac.id/wp-content/uploads/2010/01/Technology-Trust-and-E-Banking-Adoption-The-Mediating-Effect-of-Customer-Relationship-Management-Performance.pdf. [Accessed 08 Feb 2010].