Measuring the effect of customer relationship management (CRM) components on the non financial performance of commercial banks: Egypt case

This paper presents customer relationship management (CRM) components as applied on the Egyptian Commercial Banks, examined from the bankers' point of view. Then, it intends to measure their effect on the level of customer satisfaction and loyalty from the customers’ point of view as examples of the non financial performance measures. The paper is quantitative in nature and consists of two different structured questionnaires using convenience/quota sampling. The first involved 180 employees in order to measure CRM applicability, and the second involved 270 customers to measure the level of customer satisfaction and loyalty and their effect on the Egyptian Commercial Banks' financial performance The findings show that the selected banks apply CRM components but the level of application differs from one bank to another. The results showed a significant positive relationship between CRM and customer satisfaction in the Egyptian Commercial Banks, when applying them together and not separately. In addition, there is a strong positive effect between customer satisfaction and loyalty which was reflected on the Commercial Banks' financial performance. The findings confirm the importance of studying and implementing CRM to achieve customer loyalty and improve the Egyptian Commercial Banks financial performance. Banks wishing to improve their relationships with customers need to focus on the CRM components to develop relevant and effective marketing strategies and tactics. The paper measures the CRM as a multidimensional construct as applied on the Egyptian Commercial Banks and relate it to the achievement of the ultimate goal of retaining customers to gaining a sustainable competitive advantage and achieve more profits

DETERMINANTS OF CUSTOMER LOYALTY AND PROPOSING A CUSTOMER LOYALTY MODEL FOR THE BANKING SECTOR OF PAKISTAN

It is always costly to attract new customers, so the managers always try to find ways to retain their current customers and concentrate on different factors which enhances the customer loyalty among the customers of the organizations. This research attempts to find the factors of customer loyalty and their relationships with banking industry in one of the developing countries i.e. Pakistan. Then analyzing the relationship among different factors a model for the customer loyalty is proposed at the end of the research. In order to do this, a questionnaire is designed and validated, then based on the data which were gained from the 316 respondents' answers to the designed questionnaire, the analysis is done and the results and the relations among the factors are explained. Perceived Quality, Satisfaction, Trust, Switching Cost and Commitment are the factors which influence the Loyalty of the customers. Theses factors also influence each other as well. The relationships of different factors with each other are also studied and the SPSS software is used to analyze the data gathered from the respondents.customer loyalty, banking sector, perceived quality

Organizational Adoption of AI Through A Sociocultural Lens

Honors (Bachelor's)International StudiesUniversity of Michiganhttps://deepblue.lib.umich.edu/bitstream/2027.42/147389/1/mirarh.pd

Learning during the New Financial Service Innovation Process: Antecedents and Performance Effects

This article theoretically and empirically examines the antecedents and consequences of project learning during the new financial service innovation process. We analyze the impact of project learning on project performance and performance of the financial institution. Next we investigate the antecedent role of the nature of communication and organizational design on project learning. Following the development of a propositional framework, a survey research has been developed within the Belgian banking industry. Our research findings indicate that the level of project learning contributes to the corporate reputation of the financial institution. Moreover, learning during project innovation enhances the cost and the competitive position of the innovating bank. Our study empirically supports the crucial influence of management support, harmonious cross-functional interfaces, organizational diversity and participative decision-making on the level of project learning. Both innovative and coordinative communication are needed to balance the information needs throughout the innovation process. However, our findings underline the fact that the impact of innovative communication on the level of project learning is contingent upon the quality of the planning stage. The up-front activities of the innovation process seem to have an important leveraging effect on learning, and hence on project and bank performance.Economics ;

How does a data strategy enable customer value? The case of FinTechs and traditional banks under the open finance framework

The coupling of data and digital innovation opens the way for new business in the financial services sector, where customers are placed at the centre of decisions and data can help to develop customer knowledge. To carry out our research, we adopted a multi-case study approach to explore how a data strategy is developed in the retail banking industry, together with its relationship with customer value, paying particular attention to the heterogeneity between traditional banks and financial technology companies (FinTechs). Two main points emerged from the study. Firstly, there are three possible approaches to Open Finance, which are mainly defined by their different corporate cultures, organisational configurations, technological architecture and data value. Secondly, it is not enough to be a FinTech to be best placed to exploit the market, as some traditional banks share the FinTechs' approach to Open Finance. Designing new tailored products, customising their prices and offering them over the right channels through targeted communication are all data-driven initiatives that stem from cross- or up-selling potential, core to the retail banking industry for turning a customer into a cash flow, thus enabling value to be created for customers. Our findings additionally revealed that there is a form of external information asymmetry between the customer and the bank, and that there is also an internal asymmetry between bank departments, as their visibility on information about the same customer may differ

A Systematic Review on Banking Digital Transformation

This study explores different perspectives on the definition of digital transformation on banking sector. Ultimately, to facilitate future research, we summarize several research techniques used in the literature reviewed. We set well-established selection criteria to select relevant literature from Scopus, the most recognized database. Based on the bibliometric information of the papers selected, we did a bibliometric analysis. Afterward, we reviewed the literature. The results of this study are There are mainly four findings. Firstly, according to the bibliometric analysis, literature about banking digital transformation is growing exponentially. Secondly, banking digital transformation is the use of new digital technologies to enable significant business improvements in augmenting customer experience, streamlining operations, or creating new business models with innovative breakthroughs that alter conventional banking practice. Thirdly, there are some financial reasons for implementing banking digital transformation which are to increase customer satisfaction, competitiveness, efficiency, and profitability. Finally, key dimensions of banking digital transformation involve individuals, processes, technology, content, and state, while the strategy for the successful banking digital transformation should consider technology, value creation, structural change, and financial aspect

Inclusive business models? How SMEs are developing inclusive value chains and combating social exclusion in bottom-of-the-pyramid markets

Research suggests that private firms can contribute to addressing poverty by prioritising the inclusion of bottom-of-the-pyramid (BoP) communities in global financing, commerce and consumption value chains. However existing evidence have focused on large multinationals. An understanding of how small firms incorporate the inclusion of BoP communities in their value chain is critical remains under-researched. Drawing on the literature integrating entrepreneurship, inclusion and business model this article develops a qualitative study of how three agribusiness in Sierra Leone, Cameroon and Kenya. The findings highlight opportunities and challenges facing entrepreneurs in pursuing inclusive business opportunities African economies

Perceptions of innovation-based relationship marketing (PIRM) in the Sri Lankan retail banking sector: A qualitative study.

The purpose of this research is to investigate the “Perceptions of Innovation based Relationship Marketing” (PIRM) model based on evidence from four retails banks in Sri Lanka. From the bankers’ perspectives, the PIRM model focuses on how product innovation, process innovation and organizational innovation lead to improving relationship marketing. This research used qualitative methods using sixteen in-depth interviews in four retail banks in Sri Lanka. Four bankers were interviewed from each bank. The theory building case study approach has been adopted together with cross-case synthesis. The qualitative thematic analysis showed that bankers rely on three dimensions of innovation: product innovation, process innovation and organizational innovation, perceiving those to promote the improvement of relationship marketing. From the retail banking perspective, the PIRM model may enable better understanding of customer retention and acting as a way of promoting innovative sustainable competitive advantage

Effect of Managerial Capability and Organizational Capability on Digital Innovation Among Organizations in Sri Lanka

Despite the growing importance of digital innovation to achieve better performance, empirical studies examining different factors that affect digital innovation within organizations are scarce. Further, the findings of existing studies are inconsistent, leading to a knowledge gap within the context. Thus, this research focused on identifying the critical success factors affecting digital innovation from managerial and organizational perspectives. The literature review revealed four factors affecting digital innovation. A new conceptual framework was designed to test the relationships identified, and it was tested using survey data collected from 135 managerial-level employees of organizations that are engaged in digital innovation processes in Sri Lanka. Data were analyzed using the PLS-SEM approach. The findings revealed that top management support and organizational learning had a positive and significant effect on digital innovation. Since there is a dearth of research in the context of digital innovation, the conceptual framework introduced and the findings of the study will encourage organizations to understand and leverage the determinants necessary to foster digital innovation within organizations