Abstract:
The purpose of the study was to examine how banks in Ghana use Customer Relationship Management (CRM) as a strategic tool to achieve customer loyalty. Specifically, the study establishes the extent of practice of CRM in the banking industry, the relationship between CRM practices and customer loyalty, and the effect of CRM practices on customer loyalty. Furthermore, the study proffers possible solutions and recommendations in the implementation of CRM in the banking industry. A descriptive survey design was employed for the study. Using the census techniques, the study captured 200 relationship staff from 15 major banks in Central and Western Regions who agreed to participate in the study. Data were collected using questionnaires. The data were analysed using both descriptive and inferential statistics. The findings from the study were that the various major banks in Ghana appear to be relying heavily on the use of CRM to achieve competitive
advantage by increasing customer loyalty. Furthermore, CRM practices jointly have a significant relationship with customer loyalty. It was recommended to marketers aiming at building and maintaining long term beneficial relationships with their customers hoping to win their loyalty that they should give special attention particularly to competence, commitment and communication. It was further recommended to bank managers that to increase customer loyalty, they should encourage the building of strong rational bonds in the form of social bonds between their employees and customers. They should also take steps to involve customers in their social functions and treat them as real friends, not just customers.
