2.3 CRM research in financial services industry
To date few studies have examined the effectiveness of CRM in financial services
industry. For instance, Abratt and Russell (1999) conducted a study in the context of a
private South African bank exploring the relationship between banks and its
customers based on a survey of 118 high net worth individuals. They reported that
service excellence, streamlined services, and innovative products are the key factors in
the selection of private banks. In-depth interviews with 42 account managers of Hong
Kong commercial banks revealed that both social and business activities were effective
in facilitating and enhancing the relationship with customers (So and Speece, 2000).
The authors argued that Asians place more importance on “strong relationships in
business” than the West. They suggested that technology was essential for leveraging
human relationships to ensure customer interaction and gain competitive advantage.
Sweeney and Webb (2007) extended the above study by investigating the impact of the
benefits accrued from such relationship with customers on firm outcomes. Using a
survey of 275 business customers drawn from an Australian manufacturing industry,
the role of functional, psychological and social benefits in affecting the relationship
commitment of customers and firm was investigated. The findings of this study
revealed that firm level relationship commitment was influenced by functional benefits
while the individual level relationship commitment was affected by psychological and
social benefits.
Camarero (2007) investigated the impact of service quality and relational benefits on
the market and economic performance in the financial and insurance service setting. It
was found that the relational efforts such as preferential treatment, communication and
adaption to customer needs significantly affected firms’ market performance.