Customer Relationship Management in Banking Industry of UK

1. Introduction to Customer Relationship Management

As mentioned by Aghaei et al. (2013), with the growth of the banking industry customer relationship has become one of the significant factors. That is, in the current time the banking industry is strictly emphasising on their customer relationship. This is because most of the banks in the UK have realised that without a dedicated customer relationship management, the growth of the bank is unattainable. A dedicated customer relationship management team hear out their customer's queries and are compelled to provide their customers with the best possible solution. Therefore, to survive in the UK, it is necessary for a bank to solve their customer's queries to achieve the heights of success.

1.1 Purpose of the research

As stated by Eid (2013), the main aim of the study is to analyse the efficiency and effectiveness of the customer relationship management process. This is necessary as the customer relationship management process is very crucial for the survival of the banks, especially in the UK. On the other hand, research also aims to examine customer loyalty towards the UK banking industry. This step is necessary as a loyal customer always contributes to the growth of the bank. Therefore, to achieve sustainable development of bank in the UK, it is very crucial to conduct thorough research. 

1.2 Objective of the research

Some of the key objectives of a research study are as follows:

1. To study and evaluate the significance of customer relationship management in the UK banking segment and the tools used for evaluation.
2. To analyse the working and performance of other banks who have implemented customer relationship management and to compare their working procedures with one another. This is required to survive in the competition so that they can improve their strength.
3. To understand the performance of banks with and without the customer relationship management process and then compare the results for their sustainability.

1.3 Hypothesis

H1 – UK banking industry has implemented a dedicated customer relationship management for their sustainable development.

H0 – UK banking industry has not implemented customer relationship management to survive in the competitive market.

2. Literature Review

2.1 Introduction

In context to this Anabila and Awunyo (2013), customer relationship management, that is, CRM helps in increasing productivity of the banking industry. Thus, leading to the growth and sustainable development of the organisation. The customer relationship method is the best way of improving service and generating more revenue in the current scenario. As mentioned by Nikumanesh and Albadvi (2014), the relationship is focused on increasing marketing, and it also helps in improving the loyalty level of customers.

2.2 Importance of customer relationship management in the UK banking industry

As mentioned by Owano et al. (2014), customer relationship management helps in many ways in the banking industry. This is because the banking industry is mainly based on customer requirement and demand. So, customer relationship management helps in increasing the number of customers. On the other hand, it also helps in improving the performance level of banks in the UK. In addition to this Sedigh and Alikhani (2013) stated, it also helps in pulling potential customers. Apart from this, it also helps in introducing new products and services of the bank among the customers. As mentioned by Rajola (2013), the main reason behind the implementation of customer relationship management is increasing the level of loyalty of customer and others. CRM also help in analysing the customer satisfaction level, and it also assists in collecting information regarding them. In context to this Eid (2013) stated, a good customer relationship strategy is; which help the organisation in improving the relationship with the customer. On the other hand, it also helps in attracting new customers regarding a different set of banking services.

In context to this Aghaei et al. (2013) stated, with the change in technology in the banking industry customer relationship is the best way to interact with customers. On the other hand, it also helps the bank to know about the target audience demand and requirement in details. All these factors only contribute to the growth of the bank and sustain in the UK. As mentioned by Eid (2013), the CRM process is implemented by banking industries to expand their business and customer range. On the other hand, Aghaei et al. (2013) commented, many customer relationship management processes fail due to; an insufficient collection of knowledge with the implementation process. Apart from this, customer relationship management is dependent on the database management of the banking industry in the UK. Thus, customer relationship management should be well-organised and efficient to ensure the growth of the organisation. As mentioned by Rajola (2013), some banks only focus on loan distribution. So for these banks, the customer relationship is the main factor. That is, if they have proper customer relationship management then they will have a high number of customers. On the other hand, customer relationship strategies also help in increasing the competitive advantage among the banks in the UK.

2.3 Summary

The banking industries in the present scenario are focusing on the expansion of business and customer range. This part is discussing the importance of CRM in the banking industry in the UK.

3) Research Methodology 

3.1 Introduction

This part is based on data collection, data analysis and evaluation process form different sources. The primary source of data collection in this research study is secondary data research.

3.2 Research Approach

 The research method used while this research study is secondary research methods. The research is completed with the help of various UK banking websites and others (Rajola, 2013). On the other hand, the secondary research method is also completed with the help of online research websites and articles.

3.3 Data collection methods

The data collection method in this research study is the secondary and primary data collection methods. That is, for primary data collection 10 number of customer view were collected. And some major UK banks managers view regarding CRM of collected. The group of their opinion was done with the help of an interview and questionnaire.

3.4 Limitations 

The limitation of this research study was regarding time and budget constraint. The time allocated for the research was limited and the collection of data in that time was fierce.

3.5 Summary 

This section of the research study is discussing the limitation faced during this study. The most effective way regarding this is the customer relationship management process.

References

Aghaei, A., Mostafapour, M. and Rezaei, H. (2013). Investigating the relationship between service quality and customer loyalty: A case study of the banking industry. 10.5267/j.msl, 3(7), pp.2147-2154.

Anabila, P. and Awunyo-Vitor, D. (2013). Customer Relationship Management: A Key to Organisational Survival and Customer Loyalty in Ghana’s Banking Industry. IJMS, 5(1).

Eid, R. (2013). Managing customer trust, satisfaction, and loyalty through information communication technologies.

Nikumanesh, E. and Albadvi, A. (2014). Customer's lifetime value using the RFM model in the banking industry: a case study. IJECRM, 8(1/2/3), p.15.

Owano, L., Alala, D. and Musiega, D. (2014). The relationship between Customer Service Innovation and Customer Satisfaction in the Banking Industry: A Case Study of Kenya Commercial Bank. IOSR Journal of Business and Management, 16(6), pp.22-31.

Rajola, F. (2013). Customer relationship management in the financial industry. Berlin: Springer.

Sedigh, A. and Alikhani, A. (2013). Investigating important factors influencing customer relationship management: A case study from the banking industry. 10.5267/j.msl, pp.2909-2914.