Abstract:
Effective and well implemented customer relationship management
practices have assumed significant attention among scholars and practitionersin
recent times. However, despite extensive literature on CRM, studies onhow CRM
practices influence customer deposit culture is very limited in the banking
industry, particularly in Ghana. Lower Pra Rural bank, over the years has
introduced various deposit products such as Ebusua MfreYie, Kese Wokan and
Gyedzi to improve deposit mobilisation which may have translated into increase
in total deposit from GH¢56 million in 2015 to GH¢64 million in 2016
representing an increase of 14.3 percent. While management has also invested in
CRM strategies, there is the need to empirically establish the degree of influence
of CRM initiatives on deposit performance of the bank. This study formulates
research objectives to examine the extent of influence of CRM practices on
deposit mobilization of the Bank. This quantitative survey research sampled 273
customers of the bank using simple random sampling technique. Descriptive and
regression analysis was done to arrive at the findings. First, the study found that
customers of the bank perceive CRM practices as effective. The study further
found that CRM practices improve deposit mobilization level of the banks.
Effective employee-customer communication and proper complaint handling are
the CRM practices that significantly improve deposit levels of the bank. The
study therefore, concludes and recommends that management of the banks review
their CRM practices to ensure that employee are able to deliver best quality
banking at first instance.
