[How Does Customer Relationship Management Impact Customer Retention? The Case of ICICI Bank UK]
by
ACKNOWLEDGEMENT
I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.
DECLARATION
I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.
Signed __________________ Date _________________
ABSTRACT
This dissertation aims at exploring the impacts of customer relationship management on customer retention. A review of literature in relation to customer relationship management has revealed that CRM is much more than an IT tool and it should root at the core of an organisation if the company wants it to be effective. Then consumer behavioural intentions of CRM were recognised that leads the consumers to behave in the way they do. Finally, customer loyalty, customer service, customisation, reward programs, community building and increasing switching barriers were identified as the key customer retention programs of CRM. The gathered data through a customer survey and a semi-structured and in-depth interview with the Customer Relations Manager at ICICI Bank London have been analysed using the quantitative methods based on a case study strategy. The above data collection methods answered the research questions and thereby the results of the data analysis showed that CRM initiatives of the ICICI bank directly affect the customer retention strategies of the bank. This study therefore reveals to its readers from theoretical review and data collection and analysis of primary data and secondary data that CRM the main CRM factors that the effect strategy a of data analysis show the direct effect of all CRM resources including technological and infrastructural resources on CRM processes and also the direct effect of CRM processes on customer retention programs of CRM (loyalty programs, customer service, customization, and creating community of customers) which themselves have direct effect on customer retention.
TABLE OF CONTENTS
ACKNOWLEDGEMENTII
DECLARATIONIII
ABSTRACTIV
CHAPTER 1: INTRODUCTION7
Background to the Research7
Significance of the Problem11
Statement of Purpose12
Statement of the Problem13
Objectives13
Research Questions14
CHAPTER 2: LITERATURE REVIEW15
Introduction15
Defining Customer Relationship Management (CRM)15
Objectives and Benefits of CRM19
CRM Strategies22
Measuring CRM Performance27
CRM obstacles30
Consumer Behaviour31
Customer life cycle32
Market Segmentation34
Customer Satisfaction35
Relevance of customer retention37
Factors affecting customer retention38
CHAPTER 3: RESEARCH METHODOLOGY40
Study Design40
Population and sample41
Questionnaire Design and Preparation42
Data Collection43
Ethical Matter44
Data Coding and Entry44
Data Measurement44
Statistical analysis Tools45
Validity of the Questionnaire45
Statistical Validity of the Questionnaire46
Internal Validity46
Reliability of the Research47
Split Half Method47
Internal Validity47
Research Philosophy48
Research Approach48
CHAPTER 4: FINDING AND DATA ANALYSIS49
Interview Analysis80
Main Findings81
CHAPTER 5: CONCLUSION83
Conclusion for the findings83
Recommendations87
REFERENCES89
APPENDIX 196
APPENDIX 2 - INTERVIEW GUIDE99
CHAPTER 1: INTRODUCTION
Background to the Research
The banking industry is a highly competitive industry. In modern day's business, they are not only competing among other banks but they have to keep up with increased competition from non-banks and other financial institutions (Kaynak & Kucukemiroglu, 1992, 20). Differentiation of services is therefore perceived to be a difficult task in the banking sector and thus product development in banks are known to be easily imitated ...