Customer relationship management: is it still relevant to commercial banks in Taiwan?

Nowadays, customers are regarded as a commodity. Customer Relationship Management (CRM) in a bank entails important phases such as integrating the communication tools to meet the needs of customers, treating each customer as individuals, and making the customer relationship an imposing and perpetua...

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Main Authors: Yao, Hui-I, Khong, Kok Wei
Format: Article
Published: Canadian Center of Science and Education 2012
Subjects:
Online Access:https://eprints.nottingham.ac.uk/3055/
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author Yao, Hui-I
Khong, Kok Wei
author_facet Yao, Hui-I
Khong, Kok Wei
author_sort Yao, Hui-I
building Nottingham Research Data Repository
collection Online Access
description Nowadays, customers are regarded as a commodity. Customer Relationship Management (CRM) in a bank entails important phases such as integrating the communication tools to meet the needs of customers, treating each customer as individuals, and making the customer relationship an imposing and perpetual experience. The aim of this research is to determine the effectiveness of CRM implementation on customer satisfaction and perceived business performance. Literature suggests that successful CRM efforts involve proper deployment of the three phases in CRM implementation, i.e. acquisition, enhancement and recovery phases. Furthermore, there is a strong causal relationship between CRM implementation and customer satisfaction as well as perceived business performance. A survey was carried out using a survey instrument on commercial banks in Taiwan. Findings revealed that CRM implementation is positively associated with customer satisfaction and perceived business performance as suggested by the literature. Contact rate and recovery management were found to be associated with customer retention while acquisition management, regular contact and evaluation of customers lead to improved loyalty and employee sentiments. In a managerial point of view, this study provides an outline of the impact of CRM efforts on the dimensions of customer satisfaction and perceived business performance.
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spelling nottingham-30552025-09-09T15:23:03Z https://eprints.nottingham.ac.uk/3055/ Customer relationship management: is it still relevant to commercial banks in Taiwan? Yao, Hui-I Khong, Kok Wei Nowadays, customers are regarded as a commodity. Customer Relationship Management (CRM) in a bank entails important phases such as integrating the communication tools to meet the needs of customers, treating each customer as individuals, and making the customer relationship an imposing and perpetual experience. The aim of this research is to determine the effectiveness of CRM implementation on customer satisfaction and perceived business performance. Literature suggests that successful CRM efforts involve proper deployment of the three phases in CRM implementation, i.e. acquisition, enhancement and recovery phases. Furthermore, there is a strong causal relationship between CRM implementation and customer satisfaction as well as perceived business performance. A survey was carried out using a survey instrument on commercial banks in Taiwan. Findings revealed that CRM implementation is positively associated with customer satisfaction and perceived business performance as suggested by the literature. Contact rate and recovery management were found to be associated with customer retention while acquisition management, regular contact and evaluation of customers lead to improved loyalty and employee sentiments. In a managerial point of view, this study provides an outline of the impact of CRM efforts on the dimensions of customer satisfaction and perceived business performance. Canadian Center of Science and Education 2012-01-01 Article PeerReviewed Yao, Hui-I and Khong, Kok Wei (2012) Customer relationship management: is it still relevant to commercial banks in Taiwan? International Journal of Business and Management, 7 (1). pp. 151-160. ISSN 1833-3850 CRM Commercial bank Customer satisfaction Perceived business performance http://www.ccsenet.org/journal/index.php/ijbm/article/view/10226 doi:10.5539/ijbm.v7n1p151 doi:10.5539/ijbm.v7n1p151
spellingShingle CRM
Commercial bank
Customer satisfaction
Perceived business performance
Yao, Hui-I
Khong, Kok Wei
Customer relationship management: is it still relevant to commercial banks in Taiwan?
title Customer relationship management: is it still relevant to commercial banks in Taiwan?
title_full Customer relationship management: is it still relevant to commercial banks in Taiwan?
title_fullStr Customer relationship management: is it still relevant to commercial banks in Taiwan?
title_full_unstemmed Customer relationship management: is it still relevant to commercial banks in Taiwan?
title_short Customer relationship management: is it still relevant to commercial banks in Taiwan?
title_sort customer relationship management: is it still relevant to commercial banks in taiwan?
topic CRM
Commercial bank
Customer satisfaction
Perceived business performance
url https://eprints.nottingham.ac.uk/3055/
https://eprints.nottingham.ac.uk/3055/
https://eprints.nottingham.ac.uk/3055/