Customer Relationship Management and Bank Performance in Nigeria: An Empirical Validation Study

Retail financial services in all markets, including emerging markets, are undergoing major transformation that is driven by change, deregulation and customer sophistication. Customer service and specifically relationship management in particular is crucial to attaining a sustainable competitive advantage, in the market place. This study is designed to examine the impact of customer relationship management (CRM) on the Business Performance of Nigeria money deposit banks. The nomothetic methodology was adopted and forty copies of structured questionnaire were our primary data collection instrument which was distributed to ten functional and registered money deposit banks in south-south zone of Nigeria. However, the postulated hypotheses were tested by employing the Spearman Rank Correlation Coefficient (SRCC) statistical tool which was facilitated by the statistical packages for social sciences (SPSS). The study however showed that a significant relationship exists between CRM& BP. Furthermore, it was found that amongst the dimensions of CRM, customer identification and retention impacts more significantly on business performance. The study therefore concludes that Nigerian money deposit banks should increase their customer identification and retention strategies since they commensurably impact on their level of performance. However, the study recommended that the key to efficient performance of Nigeria banking industry is hinged on their ability to identify, attract, retain and develop their customers better than competitors.