Enhancing Customer Relationship Management: A Strategy to Improve Revenue Management at the Nelson Mandela Bay Municipality

In South Africa, local government as represented by a number of municipalities is at the coal-face of service delivery. Inevitably, municipal budgets are usually not sufficient to meet the unlimited service delivery obligations required by the local communities. The Nelson Mandela Bay Municipality (NMBM) is not immune to these interconnected revenue generation and service delivery priorities. The primary objective of the study is to establish an effective CRM framework that may enhance revenue collection at the NMBM. More specifically, the study investigates the nature of Customer Relationship Management (CRM) at the NMBM, factors that are responsible for ineffective CRM at the NMBM, the impacts of ineffective CRM on revenue collection at the municipality and the ways in which a CRM framework suitable to improve revenue collection at the NMBM can be established. Purposive sampling was used to select a sample of 130 respondents from a population of 420 employees in the Revenue Management and Customer Care Sub-directorate of the municipality. In view of the primary objective of the study, participants were drawn from relevant divisions such as, customer care, debtor management, rates and valuations, billing coordination and receipting. Of 130 questionnaires distributed, only 121 usable questionnaires were returned. This translates to a response rate of 93%. The empirical results reveal that there is a positive relationship between CRM and revenue management. In addition to this, the empirical results show that there is a positive relationship between customer satisfaction, customer engagement, customer value, customer experience, service standards and CRM. Furthermore, the findings of the study show that more needs to be done, as very little has been achieved by the NMBM in the context of implementing measures to enhance CRM. In this regard, the study provides managerial and future research recommendations.