[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 ...