CUSTOMER RELATIONSHIP MANAGEMENT AND ORGANISATIONAL PERFORMANCE OF FINANCIAL INSTITUTION, BENIN CITY

ABSTRACT

This study examines the impact of customer relationship management (CRM) on the performance of financial institutions, focusing on key CRM components such as customer attraction, service quality management, technological innovation, customer retention, customer satisfaction, and customer orientation. The study targeted 268 employees from selected financial institutions, with data collected through a structured questionnaire. The research adopted a quantitative methodology, utilizing descriptive statistics and regression analysis for data interpretation. Findings revealed that service quality management (β = 0.179, p = 0.003) and technological innovation (β = 0.275, p = 0.000) significantly enhance financial performance, while customer attraction (β = 0.090, p = 0.186), customer retention (β = -0.007, p = 0.925), customer satisfaction (β = 0.043, p = 0.527), and customer orientation (β = -0.015, p = 0.820) do not have a significant impact. Based on these findings, the study recommends that financial institutions should prioritize technological advancements and service quality improvements, while aligning CRM strategies with revenue-generating initiatives to maximize financial performance.