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Customer relationship management: is it still relevant to commercial banks in Taiwan?

Yao, Hui-I; Khong, Kok Wei

Authors

Hui-I Yao

Kok Wei Khong



Abstract

Nowadays, customers are regarded as a commodity. Customer Relationship Management (CRM) in a bank entails important phases such as integrating the communication tools to meet the needs of customers, treating
each customer as individuals, and making the customer relationship an imposing and perpetual experience. The aim of this research is to determine the effectiveness of CRM implementation on customer satisfaction and
perceived business performance. Literature suggests that successful CRM efforts involve proper deployment of the three phases in CRM implementation, i.e. acquisition, enhancement and recovery phases. Furthermore, there
is a strong causal relationship between CRM implementation and customer satisfaction as well as perceived business performance. A survey was carried out using a survey instrument on commercial banks in Taiwan.
Findings revealed that CRM implementation is positively associated with customer satisfaction and perceived business performance as suggested by the literature. Contact rate and recovery management were found to be
associated with customer retention while acquisition management, regular contact and evaluation of customers lead to improved loyalty and employee sentiments. In a managerial point of view, this study provides an outline
of the impact of CRM efforts on the dimensions of customer satisfaction and perceived business performance.

Journal Article Type Article
Publication Date Jan 1, 2012
Journal International Journal of Business and Management
Print ISSN 1833-3850
Electronic ISSN 1833-3850
Publisher Canadian Center of Science and Education
Peer Reviewed Peer Reviewed
Volume 7
Issue 1
Institution Citation Yao, H., & Khong, K. W. (2012). Customer relationship management: is it still relevant to commercial banks in Taiwan?. International Journal of Business and Management, 7(1), doi:10.5539/ijbm.v7n1p151
DOI https://doi.org/10.5539/ijbm.v7n1p151
Keywords CRM, Commercial bank, Customer satisfaction, Perceived business performance
Publisher URL http://www.ccsenet.org/journal/index.php/ijbm/article/view/10226
Copyright Statement Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by/4.0

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Copyright Statement
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by/4.0



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