Customer Relationship Management as a Tool for Improving Bank Performance and Nation Building

Abstract

The paper explores Customer Relationship Management (CRM) as a customer centric form of managing and retaining customers in the banking industry dovetailing into the national development and nation building. Current definitions of customer relationship management, benefit of CRM in the banking sector, critical success factors to CRM, challenges to CRM in Nigeria with the possible workflow and pitfall to its implementation in the banking system were examined using relevant literature. It was seen that if CRM is fully adopted by Nigerian banks it will greatly enhance customer value giving the bank a better customer life time value as the customer can be anticipated and satisfaction will be better guaranteed. It is also noticed that CRM could act as a subtle alternative to traditional staff target system with its inherent unethical sales behaviors creating a better transparent system and improving its accountability.