[Role of Customer Relationship Management in Service Recovery]

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.

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Abstract

In this study we try to explore the concept of “Customer Relationship Management” in a holistic context. The main focus of the research is on “the role of Customer Relationship Management in service recovery” and its relation with “Banking industry of UK”. The research used the mixed method strategy to analyze the difficulties faced by the “CRM in banks” and tries to gauge its effect through “UK banking industry”.

Table of Content

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

1.1 Outline of the study1

1.2 Background of the study1

1.3 Overview of banks and their customer service strategy2

1.4 Problem Statement3

1.5 Research Aim & Objectives4

1.6 Research Questions4

1.7 Significance of the Study5

1.8 Ethical Considerations5

1.9 Time Scale6

CHAPTER 2: LITERATURE REVIEW7

2.1 CRM Definition7

2.2 What is CRM? An IT Perspective10

2.3 Evolution of CRM12

2.4 Phases of CRM14

2.5 Customer relationship management strategies14

2.6 Review of CRM practices in Banking Industry18

2.7 Importance of CRM19

2.8 Global CRM practices in bank20

2.9 Customer Retention23

2.10 Customer Loyalty28

2.11 Antecedents of Customer Retention/Loyalty29

2.12 Triggers of Customer Attrition/Switching30

2.13 Groups of Variables Affecting Customer Retention31

2.13.1 Customer Demographics31

2.13.2 Customer Behaviour31

2.13.3 Customer Perception32

2.13.4 Macro-environment Variables32

2.14 Strategies of Increasing Customer Retention33

2.14.1 Satisfaction33

2.14.2 Switching Costs34

2.15 Firm-Customer Interaction Behavior Factors35

2.15.1 Service Usage36

CHAPTER 3: METHODOLOGY39

3.1 Research Method39

3.1.1 Classification of research methods39

3.1.2 Multi-method studies40

3.1.3 Mixed method studies40

3.2 Research Design40

3.3 Sample41

3.4 Sampling Method41

3.5 Methods for Data Collection42

3.6 Data Analysis43

3.7 Research Philosophy43

3.8 Reliability and Validity44

3.9 Generalizability45

3.10 Limitation of Research46

CHAPTER 4: ANALYSIS AND FINDINGS47

4.1 Identify the development of banking services53

4.2 Customer service recovery strategy54

4.3 Analysis58

4.4 Role of Branch location in Satisfying Customers61

4.5 Importance of Banks Services and Charges61

4.6 How E-Banking helps in Satisfying Customers62

4.7 Importance of Customer Experience62

4.8 Services offered at customer Relation Desk63

4.9 Specific CRM practices of Banks63

4.10 Tenure or Length of Relationship66

4.11 Firm-Customer Interaction Related Factors66

4.12 Managerial Implications68

CHAPTER 5: CONCLUSION73

5.1 Recommendations74

REFERENCES76

APPENDIX80

Interview Questions80

CHAPTER 1: INTRODUCTION

1.1 Outline of the study

This dissertation is based on the topic “The role of CRM in Service Recovery”. The first chapter provides an introduction to the topic including the purpose and significance of the study. The second chapter presents a review of relevant literature, highlighting the previous research carried out in this field. The third chapter covers the methodology for this study. The analysis of findings and discussion will be presented in the fourth chapter. The fifth chapter will conclude the dissertation, providing implications and useful recommendations for further research.

1.2 Background of the study

Service is an intangible spectrum provided by various service organizations. (Brown and Osborne 2005) With more sophisticated customer, requiring greater focus on choice of service and changes in the marketing environment, banks have also been diversifying themselves in terms of their ...