Innovation in Banking Industry: Achieving Customer Satisfaction
Author(s)
Clement Achimba,
Jared Opiyo Ongonga*,
Samson Mecha Nyarondia,
Amembah A. Lamu Amos,
Michael Okwara
Affiliation(s)
School of Business and Human Resource Development, Rongo University College, Rongo, Kenya. School of Education, Jaramogi Oginga Odinga University of Science and Technology, Bondo, Kenya.
School of Business and Human Resource Development, Rongo University College, Rongo, Kenya. School of Education, Jaramogi Oginga Odinga University of Science and Technology, Bondo, Kenya.
ABSTRACT
This paper examines the effects of technology in the banking industry. Based on an expansive review of literature, the paper describes various factors in this area. Technology has a direct effect on the functioning of the banks. With technological advancement, the customers benefit and the bank gains by getting more clients. Most businesses desire to offer the best services, products and customer relations to their customers because these activities increase the retention rate of customers. These activities also have a direct effect on customer satisfaction. But it’s the complexity of this process that brings a challenge to marketers. The paper looks at technological aspect of the process. This is because for any marketer or business practioner to succeed at managing a good customer relationship program, there is need for the adoption of supportive technology. This type of technology assists in the managing of the process through the maintainance of a customer data base, implementation and monitoring. Using a case study approach [1] shows that one of the business units she studied was able to achieve a 270% increase in business unit profits (above target) by implementing several straightforward Customer Relationship Management (CRM) measures. The paper analyses the nature of the banking industry and the role of technology in the Customer Relationship Management process and its implementation.
This paper examines the effects of technology in the banking industry. Based on an expansive review of literature, the paper describes various factors in this area. Technology has a direct effect on the functioning of the banks. With technological advancement, the customers benefit and the bank gains by getting more clients. Most businesses desire to offer the best services, products and customer relations to their customers because these activities increase the retention rate of customers. These activities also have a direct effect on customer satisfaction. But it’s the complexity of this process that brings a challenge to marketers. The paper looks at technological aspect of the process. This is because for any marketer or business practioner to succeed at managing a good customer relationship program, there is need for the adoption of supportive technology. This type of technology assists in the managing of the process through the maintainance of a customer data base, implementation and monitoring. Using a case study approach [1] shows that one of the business units she studied was able to achieve a 270% increase in business unit profits (above target) by implementing several straightforward Customer Relationship Management (CRM) measures. The paper analyses the nature of the banking industry and the role of technology in the Customer Relationship Management process and its implementation.
Cite this paper
Achimba, C. , Ongonga, J. , Nyarondia, S. , Amos, A. and Okwara, M. (2014) Innovation in Banking Industry: Achieving Customer Satisfaction. Open Journal of Business and Management, 2, 261-274. doi: 10.4236/ojbm.2014.24031.
Achimba, C. , Ongonga, J. , Nyarondia, S. , Amos, A. and Okwara, M. (2014) Innovation in Banking Industry: Achieving Customer Satisfaction. Open Journal of Business and Management, 2, 261-274. doi: 10.4236/ojbm.2014.24031.
References
[1] Ryals, L. (2005) Making Customer Relationship Management Work: The Measurement and Profitable Management of Customer Relationships. Journal of marketing, 69, 252-261.
http://dx.doi.org/10.1509/jmkg.2005.69.4.252 [2] Boulding, W., Staelin, R., Ehret, M. and Johnson, W.J. (2005) A Customer Relationship Management Roadmap: What Is Known, Potential Pitfalls and Where to Go. Journal of Marketing, 69, 155-166.
http://dx.doi.org/10.1509/jmkg.2005.69.4.155 [3] Bagozzi, R.P. (1974) Marketing as an Organized Behavioral System of Exchange. Journal of Marketing, 38, 77-81. http://dx.doi.org/10.2307/1250397 [4] Berry, L.L., Lynn and Upah, G. (1985) Relationship Marketing of Services: Growing Interest, Emerging Perspectives. Journal of the Academy of Marketing Services, 23, 236-245. [5] Morgan, R.M and Hunt, S. (1994) The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58, 20-38. http://dx.doi.org/10.2307/1252308 [6] Jayachandra, S., Sharma, S., Kaufman, P. and Raman, P. (2005) The Role of Information Process and Technology Use in Customer Relational Management. American Marketing Association Journal, 69,177-192. [7] Weick, K.E. and Robert, K.H. (1994) Collective Mind in Organization: Heedful Interrelating on Flight Decks. Administrative Science Quarterly, 38, 357-383. http://dx.doi.org/10.2307/2393372 [8] Glazier, R. (1991) Marketing in an Information Intensive Environment: Strategic Implications of Knowledge as an Asset. Journal of Marketing, 55, 1-19. http://dx.doi.org/10.2307/1251953 [9] Prahalad, C.K., Krishnan, M.S. and Mithas, S. (2005) Customer Relationships: The Technology Customer Disconnect. Optimize. http://www.optimizemag.com/0.4/customer.htm [10] Oliver, R.L. (1996) Satisfaction: A Behavioral Perspective on the Consumer. Richard D. Irwin/McGraw-Hill, Boston. [11] Fred, S. and Sallis, J. (2003) Promoting Relationship Learning. Journal of Marketing, 67, 80-96.
http://dx.doi.org/10.1509/jmkg.67.3.80.18656 [12] Adrian, P. and Pennie, F. (2005) A Strategic Framework for Customer Relationship Management. Journal of Marketing, 69, 167-176.
[1] Ryals, L. (2005) Making Customer Relationship Management Work: The Measurement and Profitable Management of Customer Relationships. Journal of marketing, 69, 252-261.
http://dx.doi.org/10.1509/jmkg.2005.69.4.252 [2] Boulding, W., Staelin, R., Ehret, M. and Johnson, W.J. (2005) A Customer Relationship Management Roadmap: What Is Known, Potential Pitfalls and Where to Go. Journal of Marketing, 69, 155-166.
http://dx.doi.org/10.1509/jmkg.2005.69.4.155 [3] Bagozzi, R.P. (1974) Marketing as an Organized Behavioral System of Exchange. Journal of Marketing, 38, 77-81. http://dx.doi.org/10.2307/1250397 [4] Berry, L.L., Lynn and Upah, G. (1985) Relationship Marketing of Services: Growing Interest, Emerging Perspectives. Journal of the Academy of Marketing Services, 23, 236-245. [5] Morgan, R.M and Hunt, S. (1994) The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58, 20-38. http://dx.doi.org/10.2307/1252308 [6] Jayachandra, S., Sharma, S., Kaufman, P. and Raman, P. (2005) The Role of Information Process and Technology Use in Customer Relational Management. American Marketing Association Journal, 69,177-192. [7] Weick, K.E. and Robert, K.H. (1994) Collective Mind in Organization: Heedful Interrelating on Flight Decks. Administrative Science Quarterly, 38, 357-383. http://dx.doi.org/10.2307/2393372 [8] Glazier, R. (1991) Marketing in an Information Intensive Environment: Strategic Implications of Knowledge as an Asset. Journal of Marketing, 55, 1-19. http://dx.doi.org/10.2307/1251953 [9] Prahalad, C.K., Krishnan, M.S. and Mithas, S. (2005) Customer Relationships: The Technology Customer Disconnect. Optimize. http://www.optimizemag.com/0.4/customer.htm [10] Oliver, R.L. (1996) Satisfaction: A Behavioral Perspective on the Consumer. Richard D. Irwin/McGraw-Hill, Boston. [11] Fred, S. and Sallis, J. (2003) Promoting Relationship Learning. Journal of Marketing, 67, 80-96.
http://dx.doi.org/10.1509/jmkg.67.3.80.18656 [12] Adrian, P. and Pennie, F. (2005) A Strategic Framework for Customer Relationship Management. Journal of Marketing, 69, 167-176.