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THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT IN THE MICROFINANCE SECTOR
APPIAH, IVY; AUDREY NTI, HELARIA; MENSAH, MERCY; OTENG, LINDA; AYEH-FIANKO, GABRIEL
Date:
2012-11-20
Abstract:
Customer relationship is an essential part of every business’ success. It is even so important especially with institutions that provide services, where customer satisfaction plays a critical role in customer retention. This study focused on the effects of Customer Relationship Management (CRM) on the Microfinance sector using First African Savings and Loans as a case study. The researchers searched to find out why many institutions in the microfinance sector in Ghana although are implementing CRM concept, their customers are not satisfied and still switch to other institutions. The team raised questions on objectives, systems and practices adopted, and the general outcomes of customers with respect to CRM by FAS &L.
Qualitative approach was adopted. Questionnaires and interviews constituted the primary data while the secondary data included textbooks, websites and journals. Statistical tables were used to give a clear visual expression and easy understanding to the data presented in the study. Also, inductive approach was used as we compared customers and professional’s ideas and definitions.
The outcome showed that management of FAS&L was committed to maintaining a long term relationship through CRM. The knowledge level of staff at the institution regarding this concept was low and this was seen to be due to lack of training. Also, customers’ expectations varied from what the institution was doing in terms of service delivery, processes and requirements.
The research concluded that, to be effective and efficient in the implementation of CRM programme, staffs should be trained on the current trends of CRM concept and also, there should be constant review and assessment of performance to evaluate output with customer expectations.
Description:
Although marketing practices can be traced back far as 600 BC, marketing is noted to have originated from economics around the 20h century. As marketing gained momentum and was being recognized and as it developed through the first three quarters of the 20h century, its primary focus was basically based on transaction exchanges. However, marketing developed as a field of study and practice is undergoing a transformation in its orientation from transactions to relationships (Kotler 1990, Webster 1992). The emphasis on relationship as opposed to transaction is very likely to change the idea of marketing.
As the case study continuous, we observed that there is a shift of transactional marketing to relationship marketing due to the emergence of direct marketing in today’s business to business and business to consumer markets. When manufactures and consumers work hand in hand or directly with customers, there is a sense of emotional bonding that supersedes that of the mere economic transaction. They are more inclined to co-operate with one another, and thus become more relationship oriented.
First African Savings and Loans (FAS&L) started its operations and services in January, 1988 as a remittance company meaning, it’s been in existence for the past twenty-four (24) years. It started with just twenty-five (25) customers and now has about nine hundred to one thousand (900-1,000) customers. Its goal or objective is to provide quality service to its customers and to obtain a higher market share in the microfinance sector.
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Business Administration -ST
Business Administration -ST
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