AN ANALYSIS OF CUSTOMER RELATIONSHIP MANAGEMENT IN THE BANKING SECTOR OF SAUDI ARABIA

Abstract

The growing competition in the financial markets worldwide is indicator for the need of Customer Relationship Management (CRM) systems in baking sector to gain and sustain the competitive advantages. There are different factors affecting the successful implementation of CRM in Saudi Banking sector. The basic aim of the research is to investigate and highlight the success factors and status of the CRM implementation in Saudi Banking Sector. The questionnaire was adopted from previous studies with some modifications according to banking sector. 100 questionnaires were received from the employees of banks and response rate remain 83%. Data were obtained from 3 larger banks (Al Rajhi, Alahli and Samba bank) and 4 other banks in Al Qassim, Saudi Arabia. The responses were collected on five point Likert scale ranging from strongly disagrees to strongly agree. The SPSS software used to analyse the data. Cronbach’s Alpha coefficient 0.73 shows the acceptable reliability for items in scale. Three hypotheses (H1, H2 and H3) were developed and tested using multi regression analysis. The proposed model is proved with acceptance of all hypotheses. Regression analyses were performed to check the cause and effect relationship between dependent variable (Implementation of CRM) and independent variables (top management support, customer attitude and training of staff). The positive correlation and significant relationship exists between the successful implementation of CRM (dependent variable) and top management support, customer attitude and training of staff (independent variables). There are some limitations in the study due to shortage of time and culture of the country. From the analysis and findings researcher recommended theoretical and managerial implications