Customer Relationship Management as a Customer Retention Tool: A Case Study of OK Zimbabwe Limited

  • Vusumuzi Sibanda National University of Science & Technology
  • Malias Ndhlela
Keywords: Customer Relationship Management, Customer Retention Strategies, Customer Loyalty, Customer satisfaction, Customer Expectations

Abstract

This study sought to establish Customer Relationship Management as a customer retention tool at OK Zimbabwe Limited in Bulawayo Metropolitan Province. The study investigated why organisations should care about existing customers and explored challenges on the implementation of Customer Relationship Management as a customer retention tool. The mixed research design was used to enable an in-depth qualitative establishment of Customer Relationship Management as a customer retention tool at OK Zimbabwe Limited. Convenient sampling and purposive sampling techniques were employed in the selection of a sample of 91 respondents out of a target population of 303 potential respondents. Open and closed ended questionnaires and interview schedules were employed for gathering data. Till operators responded to open ended questionnaires whilst customers responded to closed ended questionnaires through an online survey. Managers and marketing officers responded through guided interviews. Thematic analysis of data revealed that poor implementation of Customer Relationship Management concept contributed to the loss of market share, growth and profitability at OK Zimbabwe Limited in the Bulawayo Province. Till operators lack the basic knowledge about the purpose of CRM whilst managers had an idea theoretically but they lack application. The results further revealed that the absence of Customer Service Managers in all OK supermarkets in Bulawayo made it difficult for the branches to handle or manage customer issues at branch level. OK Zimbabwe Limited still lags behind in terms of technology and relies on manual documents. The study recommends that OK Zimbabwe Limited sources enough resources such as new machines, operates normal working hours for all employees, network management, provides training facilities for all employees including managers, decentralisation of procurement, maintenance, decentralises information and technology department into Southern and Northern regions to reduce workload at head office.  It is further recommended that all OK Zimbabwe Limited supermarkets in Bulawayo should have Customer Service Managers as custodians of Customer Relationship Management at branch level and the Marketing Department should be operational in Bulawayo.

Author Biographies

Vusumuzi Sibanda, National University of Science & Technology

Graduate School of Business, National University of Science & Technology, P.O. Box AC Ascot, Bulawayo, Zimbabwe.

Malias Ndhlela

Graduate School of Business

National University of Science & Technology

P.O. Box AC Ascot, Bulawayo, Zimbabwe

References

AL-Khouri, A. M. (2012), Customer Relationship Management, proposed frame work from a government perspective.C.R.M Management and Strategy: United States of America.
Armstrong, G., Kotler, P.,Harker, M. and Brennan, R. (2009), Marketing Management 2. New Jersey: Financial Times Prentice Hall.
Baron, S., Conway, T. and Warnaby, G. (2010), Relationship Marketing: a consumer experience approach. London: SAGE.
Berry, L. L. and Carbone, L. P. (2007), Build Loyalty through Experience Management.
Buttle, F. (2009), Customer relationship management: concepts and technologies. 2nd ed. Great Britain: Elsevier Ltd.
Creswell, J. W. and Clark, V. L.P. (2013), Designing and conducting mixed methods research 2nd Ed. Thousand Oaks. USA.Sage Publications.
Faed, A., Ashouri, A. and Wu, C. (2010), The efficient bond among mobile commerce, CRM and E-loyalty to maximise the productivity of companies in information science.(ICIS)International conference.
Foss, B., Stone, M. and Ekinci, Y. (2008),What makes for Customer Relationship Management system success or failure?Database Marketing and Customer Strategy Management.
Gartner, Inc. (2013), Gartner Research on Customer Relationship Management, Available at www.gartner.com {Accessed 25April 2013}.
Grazdane, I. (2013), Customer Resources Management approach for Optional Retail Business: Helsinki Metropolia University of applied Sciences.
Human, L. (2010), The social inclusion of learners with visual impairment in a mainstream secondary school in Namibia: UNISA. South Africa.
Johnson, R. B. and Christensen, J. (2014), Educational research: Quantitative, Qualitative and Mixed approaches5th.Thousand Oaks, CA: Sage.
Jobber, D. (2007), Principles and practice of marketing 5thEd:McGraw-hill Education – Berkshire.
Kotler, P. (2009), Marketing Management 13th Ed. Pearson Prentice Hall.
Kotler, P. and Keller, K. (2009), Marketing Management(14th Ed). New Jersey: Pearson International Edition.
Kumar, R. (2011), Research Methodology3rd Ed. Los Angeles, Washington, DC.
Kumar, V. and Shah, D. (2006), Building and sustaining profitable customer loyalty for the 21st century. Journal of Retailing (E-Journal) (accessed 5 April2017).
London Centre of Marketing, (2008), Principles of Marketing Module. LCM, Press. UK.
Long, C. S. and Khalafinezhad, R. (2012), Customer Satisfaction and loyalty: A literature review in the Perspective of Customer Relationship Management. Journal of Applied Business and finance Researches {E-Journal} accessed 18 March 2017}.
Mugenda, M. and Mugenda, A. (2014), Research Methods, Quantitative and Qualitative Approaches. Nairobi: Acts Press.
Mclauchlin, J. (2010), Retaining customers: It’s not just about the renewal LIMRA’s. The Marketer Newsletter Vol.17: 1-3
Payne, A. (2009), Strategic Customer Management: Cambridge University Press.
Payne, A. and Frow, P. (2006), Customer Relationship Management: From Strategy to Implementation, Journal of Marketing Management, vol. 22, and no. 1- 2 pp.135-168.
Peppers and Rogers Group (2007), How to increase market share and maintain customer trust. https://wwwpeppersandrogersgroup.com{Accessed 28 December 2007}.
Piskar, F., Faganel, A. (2009), A Successful CRM Implementation Project in a Service Company.Case Study, Journal of Management, Informatics and Human Resources.
Richards, K. A. and Jones, E. (2008).Customer relationship management: Finding value drivers. Industrial Marketing Management, vol. 37, pp.120–130.
Read, B. (2009), Top tips to build and keep customer loyalty with CRM Customer interactive solution.
Saunders, M., Lewis P. and Thornhill, A. (2016), Research methods for business students. India: Pearson Education.
Smith, M. and Chang, C. (2009), The impact of customer related strategies on shareholder value: evidence from Taiwan, Asian review of accounting. vol.17 no.3.pp.247-268.
Tracy, B. (2012), Four rules of customer satisfaction and building customer loyalty. Brian Tracy International {accessed 15 March} Available: http://www.briantracy.com/blog/business-success/four-rules-customer-satisfaction-customer-loyalty/#comment.
Ward, T. and Dagger, T. (2007), The complexity of relationship marketing for service customers. Journal of Services Marketing. vol. 21. no.4. pp.281-290.
Wong, K. (2011), CRM in action: maximizing value through market segmentation, product differentiation, and customer retention. Boomington, IN: Universe.
Published
2018-02-28
How to Cite
Sibanda, V., & Ndhlela, M. (2018, February 28). Customer Relationship Management as a Customer Retention Tool: A Case Study of OK Zimbabwe Limited. EPH - International Journal of Business & Management Science (ISSN: 2208-2190), 4(2), 27-41. Retrieved from https://ephjournal.com/index.php/bms/article/view/480