THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ON THE BANKING PERFORMANCE OF COMMERCIAL BANKS IN NEPAL

Abstract

The main objective of this study is to examine the effect of customer relationship management (key customer focus, customer knowledge management, organizing around customer relationship management, and technology-based customer relationship management) on the marketing performance of selected commercial banks in Nepal. In this study, both qualitative and quantitative approaches were employed. The study used primary and secondary sources to gather data. Primary data were collected through a 5 point Likert-scale questionnaire. The population of the study was employees (managers, supervisors, and professionals) of selected banks. The total sample size for the study was 410. To analyze the collected data correlation and multiple regression were used. The findings show that Key client focus had the highest effect on marketing performance followed by Organizing around CRM and technology. On the contrary, Knowledge Management is insignificantly related to marketing performance. Therefore, based on the findings the researcher has recommended that the bank should work more on those three customer relationship management dimensions (key client, organizing around CRM, and technology) that significantly affect the marketing performance.