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Student: Trương Thị Vân Anh
Advisor: PhD. Su Fang Pei
Co-advisor: PhD. Lê Văn Huy
ID: 11752332 – Class: SDMBA1
Email: [email protected]
DETERMINANTS OF CUSTOMER DETERMINANTS OF CUSTOMER RELATIONSHIP MANAGEMENT RELATIONSHIP MANAGEMENT
PERFORMANCE IN ELECTRONIC PERFORMANCE IN ELECTRONIC BANKING SERVICES – THE CASE BANKING SERVICES – THE CASE
OF BANKS IN DANANG,OF BANKS IN DANANG,VIETNAMVIETNAM
KEYWORDS
Customer relationship management (CRM)
CRM performanceElectronic banking (e-banking)Vietnam commercial banks
OUTLINE
Introduction1111
2222
3333
4444
5555
Literature Review
Research methodology
Contribution & Timetable
References
1.1 RESEARCH BACKGROUND
Development of banking systems in Vietnam Development of e-banking: Fierce competition between
banks, especially through e-banking (average transaction cost: 1.07$ - traditional channel, 0.04$ - call/contact center, 0.27$ - ATM, 0.01$ - internet banking alternatively at America) (Vu, 2007)
Future of e-banking in Vietnam: cash payment will be not exceed 18% & 80% transaction number between banks will be through bank system at 2020 (Thoa, 2007)
1.1.1 Electronic banking in Vietnam
1.1 RESEARCH BACKGROUND
The automation of horizontally integrated business processes involving front office customer contact points (marketing, sales, service and support) via multiple, interconnected delivery channels (Metagroup, 2000)
IT enabled business strategy (Gartner group, 2004) Banks deal with individual consumers or customers so they
want CRM for its analytical capability (Buttle, 2004) Be analytical and operational process (Ryter et al., 2001,
Peppers and Rogers, 2004)
1.1.2 Customer Relationship Management
e-banking is one of the most important problem (help banks establish new construction, enhance serving time (Thoa, 2007))
Lack of academic effort addressing the issue of CRM performance
Many people are still confused about actual domain of CRM
No papers conducted about CRM performance in customer view
Individual motive: CRM and e-banking are areas I concerned
My work experiences in bank
1.2 RESEARCH MOTIVES
Define the determinants of CRM performance of e-banking
Determine how these factors strong
Make implications for management of local banks
1.3 RESEARCH PURPOSES
I
I Identify
D Differentiate
Interact
C Customize
Analytical CRM
Operational CRM
2. LITERATURE REVIEW
CRM performance in customer view belongs to effficiency and effectiveness of Operational CRM
CRM process is included customer targeting, enquiry management, customer knowledge, campaign management, managing problems, product logistics (Oztaysi et al., 2011)
Performance is defined as the potential for future success of actions in order to reach the objectives and targets (Lebas, 1995)
CRM performance evaluation metrics are related to customer relationship strength, sales effectiveness, and marketing efficiency (Kim et al., 2004)
CRM implementation also is measured by 4 components: two-way communication, efficiency, employee attitude, and employee knowledge (Rootman, 2006)
2. LITERATURE REVIEW
2.1 CRM performance
2. LITERATURE REVIEW2.1 CRM performance
Conceptual framework(Rootman, 2006)
2. LITERATURE REVIEW
2.1 CRM performance
Variables Items
Bank’s success concern High concern for bank’s success
Confidence Confidence in bank
Strong bond Strong bond with bank
Benefits Receive many benefits
Commitment Committed completely with bank
The information technology that is deployed for the specific purpose of better initiating, maintaining, and/or terminating customer relationships (Bharadwaj et al., 1993)
Technology usage is regarded a key driver of organizational success (Devaraj and Kohli, 2003; Mahmood et al., 2001)
CRM technology usage enable firms to obtain performance gains and include two variables (CRM system usage, support through CRM system) (Greve and Albers, 2006)
Collaborative CRM technology belongs to analytical CRM and be understood as types of electronic banking services
2. LITERATURE REVIEW
2.2 Collaborative CRM technology
2. LITERATURE REVIEWCRM value generation process (Keramati et al., 2010)
2. LITERATURE REVIEW
2.2 Collaborative CRM technology
Variables Items
ATM Using automated teller machine
POS Using payment cards at point of sales
Telephone banking Using telephone banking service
Mobile banking Using mobile banking service
Call center Using call center service
Internet banking Using internet banking service
Communication is the delivering of a message or information, through various means, from one individual or group to another (Dodd, 2004;Joiner, 1994)
Communication is a human activity that connects people and creates relationships between them. Firms can make use of effective communication to shape client relationships (Swartz and Iacobucci, 2000)
Two-way communication occurs when firms listen to their consumers, and with better interaction between consumers and firms (Mudie & Cottam, 1999; Duncan and Moriarty, 1998)
2. LITERATURE REVIEW
2.4 Two way communication
2. LITERATURE REVIEW
2.4 Two way communication
Variables Items
Account statement Receiving account statements from bank
Media Receiving banking information through various media regularly
Senior managersSenior managers are always available for appointments with customers when necessary
Communicate Employees communicate effectively
Meeting Being invited to client meeting
Available Receive information if certain services will be available
Customization goes beyond communicating with customers and is also about the creation of products for individuals (Rootman, 2006)
Customization is about the creation of products and services based on each customer's taste (Winer, 2001)
Customization is also belongs to operational CRM (Peppers and Rogers, 2004)
2. LITERATURE REVIEW
2.5 Customization
2. LITERATURE REVIEWCustomer retention program (Winer, 2001)
2. LITERATURE REVIEW
2.5 Customization
Variables Items
Individual message
Individualization of marketing messages
Services customization
Customization of services
Desired communication
Communicating with customers based on desired way
In paper about performance of personal banking sector, Reed et al. (2009) mentioned social capital factors as independent factors. External social capital shows social relationships existing between employees and clients.
Ali et al. (2006), Ali and Alshawi (2005) also made mention of cultural dimensions framework for the management of CRM systems implementation
In this study, employee-client relationship is developed and also considered as one of cutural dimensions in customer view. Employee-relationship dimension is expected that has positive effect on CRM performance in Vietnam
2. LITERATURE REVIEW
2.6 Employee-client relationship
2. LITERATURE REVIEW
2.6 Employee-client relationship
Variables ItemsParticularism
(Trompenaars, 1993)
Situation-specific relationship obligations and unique circumstances
Emotional Relationship Orientation
(Trompenaars, 1993)
Interactions where emotions is readily expressed
Diffusion Orientation(Trompenaars, 1993)
Business relationships in which private and work encounters are not demarcated and ‘segregated-out’
Regularly visit (Reed et al., 2009)
Employees visit customers regularly
Vist accompanied by managers (Reed et al., 2009)
Employees visit customers accompanied by the bank’s top managers
3. RESEARCH METHODOLOGY3.1 Research model
Collaborative CRM technology
Two way communication
Customer satisfaction
CRM performance
Employee-client relationship
3. RESEARCH METHODOLOGY3.2 Measureming instrument
Dimensions Variables Code
Collaborative CRM technology (6 items)
(by Nili, 2010)
ATMPOSTelephone bankingMobile bankingCall centerInternet banking
ATMPOSTELEMOBICALLIB
2-way communication (6 items)(Rootman, 2006)
Account statementMediaSenior managersCommunicateMeetingAvailable
ACCOMEDIMANACOMMMEETAVAI
3. RESEARCH METHODOLOGY
3.2 Measureming instrument
Dimensions Variables Code
Customization (3 items)(Winer, 2001)
Individual messageServices customizationDesired communication
INDICUSTDESI
Employee-client relationship
ParticularismEmotional relationshipDiffusion Regularly visitVisit accompanied by managers
PARTEMOTDIFFVISITWITH
CRM performance (5 items)(Rootman, 2006)
Bank’s success concernConfidenceStrong bondBenefitsCommitment
SUCCCONFBONDBENECOMM
3. RESEARCH DESIGN
3.3 Sampling
Scale: 5 point scale of Likert Population: customers of electronic banking services in
Vietnam Sample selection: Convenience sampling (no need to
generalize, limited objectives, saving time and cost) Minimum size of sample: 300 Responders: customers of 6 banks in Danang city (based
on number ratio of each bank in Danang city)
3. RESEARCH DESIGN
3.4 Data analysis
Pilot test
Factor analysis
Reliability of the measuring instrument
Mutiple regression analysis
4. CONCLUDING REMARKS
Concluding the determinants of CRM performance in electronic banking services
Providing additional evidence to the growing body of knowledge concerning the importance of achieving the higher level of CRM performance
Explaining the same or difference between CRM performance of electronic banking in Vietnam and these services of other countries
Explaining significant of customer view about relationship between them and their banks
New element (employee-client relationship) in CRM performance research of electronic banking services
4.1 Expected Results and contributions
4. CONCLUDING REMARKS
Tasks Estimated time
Thesis proposal Within August, 2012
Literature review September
Frame of reference October
Data analysis November
Findings December
Conclusion and implication January, 2013
Representation February, 2013
4.2 Current progress and Following Schedule
REFERENCES
Ali M., Brooks L., and Alshawi S. (2006), Cultural dimensions and CRM systems: A cross-cutural study case study
Becker Jan U., Goetz G., and Albers S. (2009), The impact of technological and organizational implementation of CRM on customer acquisition, maintenance, and retention, Internatioanl Journal of Research in Marketing 26, 207–215
Croteau, A.-M. and Li, P., (2003) "Critical Success Factors of CRM Technological Initiatives", Canadian Journal of Administrative Sciences, 20, 1, 21-34.
Grabner-Kraeutera, Sonja, Gernot Moedritscherb, Martin Waigunyc & Werner Mussnigb. (2007). Performance Monitoring of CRM Initiatives. In the 40th Annual Hawaii International Conference on System Sciences, January 3-6, 2007, Hawaii, USA.
Greve G. and Albers S. (2006), Determinants of Performance in Customer relationship management – Assessing the Technology usage – Perfomance link
ICSB (2002), CRM Scan, www.icsb.nl.
Keramati, A, Mehrabi, H & Mojir, N 2010, A process-oriented perspective on customer relationship management and organizational performance: An empirical investigation,‘ Industrial Marketing Management, vol. 39, no. 7, pp. 1170–1185.
Kim, J., Suh, E., & Hwang, H. (2003). A model for evaluating the effectiveness of CRM using the balanced scorecard. Journal of Interactive Marketing, 17(2), 27-28. Mishkin, F. S., (2000), The Economics of Money, Banking, and Financial Markets. 6th ed., Addison Wesley.
Kocoglu D. (2012), Customer relationship management and customer loyalty: A survey in the sector of banking. International Journal of Business nd Social Science, Vol. 3 No. 3, 282-291.
Minami C., J. Dawson (2008). The CRM process in retail and service sector firms in Japan: Loyalty development and financial return, Journal of Retailing and Consumer Services 15, 375-385.
REFERENCES
Mithas, S., Krishnan, M. S., & Fornell, C. (2005). Why Do Customer Relationship Management Applications Affect Customer Satisfaction? American Marketing Association, 69, 201-209.
Nili A. (2010). The impact of CRM on Customer Retention in electronic banking: Case of Iranian banks, Master thesis, Lulea university of Technology
Niraj, R., Gupta, M. and Narasimhan, C. (2001) "Customer Profitability in a Supply Chain", Journal of Marketing, 65, 3, 1-16.
Payne, A., & Frow, P. (2005). A strategic framework for customer relationship management. Journal of Marketing, 69(4), 167-176.
Roh T. H., Cheol Kyung Ahn, Ingoo Han (2005). The priority factor model for customer relationship management system success, Expert Systems with Applications 28, 641-654.
Reed K. K, Srinivasan N., and Doty D. H (2009). Adapting human and social capital to impact performance: some empirical finding from the U.S. personal banking sector, Journal of Managerial Issues Publisher: Pittsburg State University, Vol 21
Reinartz, W., Krafft, M. and Hoyer, W. (2004) "The Customer Relationship Management Process: Its Measurement and Impact on Performance", Journal of Marketing Research, 41(3), 2004, 293-305.
Rootman C. (2006). The influence of customer relationship management on the service quality of banks, The Nelson Mandela Metropolitan university
Ruyter K. De, L. Moorman, and J. Lemmink, “Antecedents of Commitment and Trust in Customer-Supplier Relationships in Technology Markets,” Industrial Marketing Management 30, no. 3 (2001), pp. 271–286.
Trompenaars, F. (1993). Riding the waves of culture: Understanding culture diversity in business, in R., Goodwin (ed.) Personal Relationships Across Cultures (pp. 22-36) Routledge, London.