A BUSINESS-BANKING PERSPECTIVE ON THE ROLE OF DIFFERENT CRM LEVELS IN SATISFACTION AND PRODUCT OWNERSHIP

The purpose of this paper is to establish whether customers from small, medium and large business-banking segments – who have been exposed to different customer relationship management (CRM) processes – experienced varying levels of customer satisfaction. Specifically, whether those segments with higher satisfaction levels also had higher levels of product ownership. Using computer-aided telephone interviewing, data were obtained from the participating bank and its outsourced research company over a three-year period. Respondents’ data were integrated with product portfolio data, totaling 20 661 usable records. Findings showed that the bank’s CRM processes support cross-selling efforts, but do not seem to yield satisfaction for larger segments. This study provides food for thought to bank managers on whether more expensive CRM processes deliver customer value, and consequently cost-effectiveness. Bank managers could utilize this study’s results for better allocation of resources and the creation of optimal CRM structures within the bank.