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Digitally Signed by: Content manager’s Name

DN : CN = Weabmaster’s name

O= University of Nigeria, Nsukka

OU = Innovation Centre

Nwamarah Uche

Faculty of Arts

Department of Mass Communication

CUSTOMER RELATIONS PRACTICE IN OLD AND NEW

GENERATION BANKS: A COMPARATIVE ANALYSIS.

OKORIE JANE ONYINYECHI

REG. NO: PG/MA/11/61253

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TITLE PAGE

CUSTOMER RELATIONS PRACTICE IN OLD AND NEW GENERATION

BANKS: A COMPARATIVE ANALYSIS.

BY

OKORIE JANE ONYINYECHI

REG. NO: PG/MA/11/61253

A Research Project Submitted to the Department of Mass Communication,

University of Nigeria, Nsukka in Partial Fulfillment of the Requirements for the

Award of Master of Arts Degree in Mass Communication

APRIL, 2014.

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CERTIFICATION

This research project is an original work of Okorie Jane Onyinyechi with Reg.

No. PG/MA/11/61353. It satisfies the requirements for presentation of research report

in the Department of Mass Communication, University of Nigeria, Nsukka.

--------------------------- --------- ----------------------------- ---------

Dr. Okoro N. M. Date Dr. Ray Udeajah Date

(Project Supervisor) (Head of Department)

---------------------------------------- -------------

External Examiner Date

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DEDICATION

This project is dedicated to the Almighty God my creator and helper. It is also

dedicated to my beloved and caring husband, Pastor Okorie J. U. for his kindness,

support and encouragement and also to my three lives – Chiaha, Emmanuella and

Echezonachukwu Okorie.

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ACKNOWLEDGEMENT

I am thankful to the God of Grace, who enabled me throughout the period of this

research work.

I appreciate immensely my project supervisor, Dr. N. M. Okoro whose fatherly,

corrective and kind approach has helped me to carry out this project to the end.

My thanks go to Dr. R. A. Udeajah, the dynamic Head of the Department of

Mass Communication and all my lecturers who helped to widen my academic horizon,

people like Dr. N. M. Okoro my supervisor, Prof. C. C. Okigbo, Dr. G. H. Ezeah, L. I.

Anorue and E. U. Ohaja.

I also acknowledge various authors whose books and other materials I consulted.

Not forgetting the officials of all the banks sampled.

I am indeed grateful.

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TABLE OF CONTENTS

Title Page - - - - - - - - - - i

Certification - - - - - - - - - - ii

Dedication - - - - - - - - - - iii

Acknowledgment - - - - - - - - - iv

Table of Contents - - - - - - - - - v

Abstract - - - - - - - - - - vi

CHAPTER ONE: INTRODUCTION

1.1 Background of the Study - - - - - - - 1

1.2 Statement of the Problem - - - - - - - 7

1.3 Objectives of the Study - - - - - - - 8

1.4 Research Questions - - - - - - - - 8

1.5 Significance of the Study - - - - - - - 9

1.6 Scope of the Study - - - - - - - - 9

1.7 Definition of Terms - - - - - - - - 10

References - - - - - - - - - 12

CHAPTER TWO: LITERATURE REVIEW

2.1: Focus of Review - - - - - - - - 13

2.2: Banking in Nigeria: A general overview- - - - - - 13

2.3: Customer Relationship Management: A Conceptual Appraisal - - 16

2.4. CRM and customer satisfaction: A Review - - - - 19

2.5: Corporate Image, Public Confidence and Customer Service in Banks - 26

2.6: Theoretical Framework - - - - - - - - 30

References - - - - - - - - - 34

CHAPTER THREE: RESEARCH METHODOLOGY 31. Research Design - - - - - - - - 36

3.2 Population of Study - - - - - - - - 36

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3.3 Sample Size Determination - - - - - - - 37

3.4 Sampling Technique- - - - - - - - 38

3.5 Measuring Instrument - - - - - - - 39

3.6 Validity and Reliability of Measuring Instrument - - - 40

3.7 Method of Data Analysis - - - - - - - 41

References - - - - - - - - 43

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1 Data Presentation and Analysis - - - - - - 44

4.2: Discussion of Findings - - - - - - - 63

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings - - - - - - - 67

5.2 Conclusion - - - - - - - - - 68

5.3 Recommendations - - - - - - - - 68

References - - - - - - - - - 70

Bibliography - - - - - - - - - 71

Appendix - - - - - - - - - 74

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ABSTRACT

Customer relations is clients oriented and at its root lie the need to create a

convivial atmosphere that will be beneficial to the organization and its sundry clients.

Customer relations entail building or establishing a relationship between an

organization and its customers through excellent service provision and delivery in other

to create an impressionable opinion of the organization in the minds of the customers.

Therefore, this study, “customer relations practice in the old and new generation

banks: A comparative analysis”, compares and analyses the customer relations

practices of both old and new generation banks in Nigeria with the view to identifying

their distinct customer relations orientation and its implications on banks’ profits and

sustenance. Using survey research and In-depth Interview methods, 384 respondents

were sampled through cluster, quota and systematic sampling techniques respectively.

This was from the total population of 783,047 for Enugu and Awka Metropolis. The

questionnaire and interview were the instruments of data collection. The findings reveal

no bank in Nigeria (both old and new generation banks) has found lasting solution to

the problem of traffic and queuing system, which is attributed to staff inefficiency.

However, new generation banks were found to do better in terms of service delivery and

handling of customers’ complaints. At the final analysis, it is recommended that since

all efforts to eliminate long queues in Nigeria banks has not yielded much results, banks

should employ more staff as well as open more branches or expand the existing ones

where necessary. Also, the daily withdrawal of the maximum of One Hundred Thousand

Naira (N100, 000) with ATM Cards should be reviewed upwards so that the customers

would have lesser transactions to make inside the banks.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study.

Customer relations is a very broad field that encompasses customer/client

service, corporate social responsibility, relationship marketing, reputation/image

management among others. Due to its broad scope, it does not have a generally

acceptable definition. However, this notwithstanding, one thing is certain-customer

relations is clients-oriented and at its roots lie the need to create a convivial atmosphere

that will be beneficial to the organization and its sundry clients.

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Customer relations entails building or establishing a relationship between an

organization and its customers through excellent service provision/delivery in order to

create an impressionable opinion of the organization in the minds of the customers.

Some organizations that have thrived in business over the years are those that carved a

niche for themselves as customer friendly enterprises. In most cases, the difference

between ailing and thriving companies or organizations lies in their customer service

orientations. This is because, studies have shown that the perception of customers

towards a particular organization or company goes a long way in determining the kind

of patronage they give the organization. This is why a small company can grow and

outshine its better in the market.

Customer relationship management, as the name implies, is saddled with the

responsibility of establishing, developing and sustaining relational partnerships between

an organization and its clients. It is becoming an important issue in marketing in order

to gain customer loyalty, improve customer relations rates, as well as increase profits.

Customer relations management refers to a management approach that seeks to create,

develop, and enhance relationships with carefully targeted customers in order to

maximize customer value and corporate profitability… (Kuo-chung and Chin-shan,

2012:64).

Customer relations (also known as customer care or service in some companies)

is seen as giving attention or provision of service before, during and after a transaction.

According to Turban et al. (2002), “customer service is a series of activities designed to

enhance the level of customer satisfaction – that is the feeling that a product or service

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has met the customer expectations”. It attempts to make best utilization of both divides.

That is, it is geared towards customer satisfaction and aims at increased profitability.

The importance of customer service/relations may vary by product or service

offered industry and customer. In the banking sector, customer relations take two

dimensions, customer service (care) and financial relations. Although, in most cases

separating them is most difficult because both of them are geared towards winning

customers and ensuring the loyalty of existing ones. Customer service entails assisting

the customer in making cost effective and correct use of a product or service. It includes

assistance in planning, training, troubleshooting, maintenance, upgrading and disposal

of a product or service. It can be provided by sales or service representatives, or by

automated means. Examples of automated, are the Internet sites Automated Teller

Machines (ATM). ‘Automated means’ in this instance, can be based entirely on self-

service, or may also be based on service by more or less means of artificial intelligence.

(www.ehow.com/aboutcustomerrelations.html#1xzz2EikiQ7ss/retreived-4/12/2012).

Financial relations, on the other hand, entails relationship marketing (a new

concept in marketing communication). Relationship marketing has been viewed by

Unegbu (2012:4) as buyer – seller relationship that accumulates over time with

opportunities to transfer individual and discrete transactions into relational partnerships.

She further states.

It implies the development of long-term relationships

between the customers and the suppliers, in order to

generate advantages for all those involved and to

allow the co-creation of value rather than its

unilateral distribution. It (relationship marketing)

aims not only at attracting but also retaining

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customers and knowing them better (Unegbu,

2012:3).

Customer relations (which is the concern of this work) is “the frontline between an

organization and its customers” (Lawson 2012:1). It highlights the relationship that is

based on the understanding existing between an organization and its clients. The role of

a customer relations person, to quote Ayo Oyebade, a brand strategist, is mainly to

make the client happy and get into his (or her) good books by meeting every possible

demand of the client or customer.

Oyebade further states:

In fairness to executives working on the clients’

side…they (clients) simply want to be part of your

business success. They expect to be appreciated, we

all love to be loved…we are human beings with

affinity for affection. We usually take interest in

those who are interested in us…the onus is on the

client service person to understand this feeling and

fashion a way that will work for his organization in

dealing with the client that surpasses collecting a

local purchasing order (LPO). Your organization

must deliver all the deliverables with

professionalism. It must develop reputation for

excellence in service delivery.

The above presupposes that customers have vested interest in the organizations

(banks) they patronize. The customer relations person’s duty is therefore to ensure that

the customers’ welfare is not undermined. The golden rule here is “to do unto the

customers what you would have them do unto you”. They are the ones that ensure your

target sales are met and possibly ensure that the employer delivers dividends to the

shareholders. Without the customers (clients) business is doomed. The customer

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remains an asset and his importance to the survival and growth of banks is portrayed in

the words of Mahatma Gandhi quoted in (Onah & Thomas, 1993:14):

A customer is one of the most important visitors on

our premises. He is not dependent on us. We are

dependent on him. He is not an interruption on our

business. He is the purpose of it. He is not an

outsider on our business. He is part of it. We are not

doing him a favour by serving him. He is doing us a

favour by giving us an opportunity to do so.

The importance of the customer to any business cannot be over-emphasized. In

marketing, for instance, it is believed that the customer is always right. Ekwueme

(2008:264) puts it more succinctly, “the simple lesson to be learnt is that if you wish

your bank to survive and thrive, pay good attention to your customer even if he is

irrational, aggressive or foolish. He is the king and is always right. You need him. He

does not need you. Without him, you are out of business”.

In Nigeria, customer relations department is a specially carved out section in

banks to cater for the need of customers. But unlike other departments like ‘Operations

and Marketing,’ customer relations was relegated to the background. “Apart from the

issuance of deposit/withdrawal slips to customers”, to quote Megwa Stella, a banker

with one of the old generation banks, not much was heard from this department prior to

the “ Consolidation exercise” carried out by the Central Bank of Nigeria (CBN) in

2006. The consolidation exercise (bank re-capitalization) led to the demise of many

banks (89 banks in 2004 were shrunk into 24 banks in 2006) as well as the

establishment of more vibrant ones (Ekwueme, 2006:255; Onyike, 2012:21). Such

banks as First Bank, United Bank for Africa (UBA), and Union Bank are among the old

generation banks that survived the CBN’s hammer, while the new generation banks

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(also called the post consolidation mega-banks) may include Guaranty Trust Bank

(GTB), Keystone Bank, Zenith Bank, Access Bank and others. Consequent upon

increased competition, which was the after-math of the consolidation, banks resorted to

aggressive marketing by becoming more customer friendly.

Customer relations as aforementioned is at the head of the broad spectrum of

public relations activities which Ogundipe (1990:241) says, “is sine qua non for the

survival of such a corporate body…”

According to Ogundipe (1990), public (customer) relations in banks is expected

to fulfill the following:

…Serving as a central information source about the

organization and the publics, bringing to public

attention significant facts, opinions and

interpretations that will serve to keep the public

aware of its policies and actions; co-ordinating the

activities which affect its relations with the general

public as well as with special public groups;

collecting and analyzing information on the

changing attitudes of key public groups towards it.

The centrality of customer relations in banks’ survival in contemporary society from

Ogundipe’s standpoint is not ruled out. Of all profit making enterprises, financial

institutions depend almost entirely on public perception and trust for their survival and

success. This is because banking is predicated on confidence. So you must effectively

manage information about banking services in every facet (Rhody, 1991:569-570;

Ebiseniju & Okungbowa, 1998:29).

After the consolidation exercise, one thing had remained – the need to stay afloat

and ahead of competition. The need therefore arose for banks to continuously research

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into and review their customer relations practice to know the perception of the

customers with a view to retaining existing loyal customers and wooing prospective

ones. While some banks cashed in on this, others may have underestimated its

importance to their corporate existence. Just recently, Bank PHB, Spring Bank, Oceanic

Bank, Intercontinental Bank and Afri Bank were either sold or forced into merger with

other banks. The problem of these banks, experts argue, is not insufficient capital/asset

base but bad customer relations orientations.

Research in the past has delved into the area of public relations, advertising and

marketing, but none known to this researcher, was narrowed down to customer relations

management (CRM) in banks. And neither has any study undertaken to do a

comparative analysis of banks’ customer relations. This study was therefore motivated

to fill the void in literature by undertaking to do a comparative study of the customer

relations practices of both old and new generation banks in Nigeria with a view to

identifying their distinct customer relations orientations and its implications on banks’

profits and sustenance.

1.2 Statement of the Problem

Customer relations is not about understanding the market as it were; it is about

understanding people and their individual needs and styles and meeting them.

The best way banks can do this is to keep the customers in mind and think of them as

the real business, instead of the product or services offered. To do this, the banks must

constantly strategize to adapt to the changing circumstances of the society and the

behaviour of the customer, which is constantly in a state of flux.

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To achieve customer loyalty and attract prospective ones, banks have introduced

innovations into their operations. “Customer help lines, E-banking, queue efficiency

and management, Automated Teller Machines (ATM)” and other customer friendly

packages and dispositions are some of the innovations that endear customers to their

banks.

However, notwithstanding these ‘post consolidation’ initiatives in commercial

banks one still finds customers who complain of poor customer service in banks. In

such situations, these dissatisfied customers usually compare their banks with others

and as such may consider switching over to the banks they consider better. In most of

the cases, financial analysts say, these arguments tow generational lines’. That is, while

some argue in favour of old generation banks for their “long standing policies of

customer satisfaction”, others favour new generation banks for their “youthful and

flexible” customer service orientation. Is this so? Are all the perceptions about the

banks correct? And how does this affect the customers’ preference of banks?

This study is undertaken to do a comparative study of old and new generation

banks’ customer relations practices to determine their area of convergence, divergence

and as well as to find out if their respective successes or failures are attributable to their

customer relations practice.

1.3 Objectives of the Study

The objective of this study is to assess the customer relations practices of old and new

generation banks to determine their areas of convergence and divergence as well as to

ascertain if their respective successes or failures are attributable to their customer

relations. Specifically, the study intends:

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1. To find out the differences between old and new generation banks customer

relations packages.

2. To find out if the customer relations packages of old and new generation

banks are accessible to customers.

3. To find out if the customers’ perception of the customer relations packages of

old and new generation banks influence their choice of a particular bank.

1.4 Research Questions

1. What difference exists between old and new generation banks’ customer

relations packages?

2. How accessible are these customer relations packages to customers?

3. What influence does customers’ perceptions have on their choice of any

particular bank in the country?

1.5 Significance of the Study

The major problem most government and corporate organizations face in policy

formulation is the dearth of empirical data in the area of interest.

This study will be meaningful in a lot of ways to the government, and corporate

organizations since it provides them with some vital data in the area of banking and

client/customer relations as well as help them to make policies and strategies that will

be of help to business especially in the area of customer service or customer relations

management. It will further assist in developing an understanding of research about the

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banking industry by finding out what are actually involved in the banking and client

service world.

It may also help in educating other financial and non-financial organizations on

the relevance of adopting good customer/client relations that is based on value re-

orientation and customer satisfaction.

The study will as well provide data for the research activities of bankers,

financial experts, students, lecturers, as well as other corporate bodies and

public/customer relations practitioners.

1.6 Scope of the Study

This study is confined only to just all the customer relations activities aimed at

retaining valued customers and winning new ones.

Geographically, it covers all the old and new generation banks in the southeast

geopolitical zone. However, First Bank, UBA, Guaranty Trust Bank (GTB), and Zenith

Bank were selected to be studied.

In order to get the perception of the public about the customer relations packages

of the old and new generation banks, Enugu and Awka metropolis were selected. These

cities were selected based on their strategic importance in the heart of the people. While

Enugu serves as the capital territory of the old Eastern region as well as the regional

headquarters of the banks, Awka is the nearest city to Onitsha, the commercial nerve

center of the Eastern region.

N: B. Please note that public perception was chosen in place of customers’

perceptions because the perception of the public, especially those that are not on the

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banks clientele list can go a long way in influencing prospective customers choice of

banks.

1.7 Operational Definition of Terms

Certain terms have been used in this research work, which may not be fully

understood by all who come across it. It becomes pertinent therefore, to define some of

these terms. Hence, we have them as follows:

Customer: This is a person who buys a product or service from a person or

organization, usually a seller. In banking, a customer is a client who patronizes the bank

either to make deposits, withdrawals, or get a loan or other banking services.

Customer Relations: This is the effort made by banks to establish and maintain

goodwill between these organizations and their customers and prospective customers.

Bank: A bank is a financial institution set up purposely for the safe keeping of money,

valuable goods and documents to be made available at the request of the depositor. It is

also charged with the responsibility of accepting deposits, granting of loans and over

draft irrespective of interest paid on them.

Old Generation Bank: These are the banks that were established in the country during

colonialism. These are First Bank (established in 1894), Union Bank (1917) and United

Bank for Africa (1948).

New Generation Banks: These are the banks that preceded Nigeria’s independence in

1960. These include Fidelity Bank, Zenith Bank, Guaranty Trust Bank (GTB), Access

Bank, Keystone Bank, Stanbic IBTC Bank etc.

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REFERENCES

Ekwueme, A. (2008). Bank consolidation in Nigeria and Challenges to the financial

relations practitioners: An analysis. International journal of communication, P.

252-270.

Ogundipe, Victor (1990), “Public relations in banking”, in Okigbo, I. (ed), Advertising

and Public Relations. Enugu: Snaap Press Ltd., p. 241.

Ebisemiju, Bankole and Okungbowa, Andrew, I. (1988, June) “Managing a Bank’s

public image is tough”. The Guardian, p. 29.

Okafor, C. O. (2006). Public Relations Principles & Practice. Enugu: CECTA Books.

Onyike, I. E. (2012). A Study of newspapers’ coverage of the Islamic banking

controversy in Nigeria (Unpublished M. A. Project), University of Nigeria,

Nsukka, Nigeria.

Rhody, Ronald, E. (1991). The handbook of Public Relations and Communications.

London McGraw-Hill Book Company.

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CHAPTER TWO

LITERATURE REVIEW

2.1: Focus of Review

The review of literature focuses on both theoretical and empirical studies in the

area of banking and customer relations. The review was however, carried out in line

with the following subheads:

(i) Banking in Nigeria: A general overview.

(ii) Customer Relationship Management: A conceptual appraisal.

(iii) CRM and Customer Satisfaction: A Review.

(iv) Corporate Image, Public confidence and Customer service in banks: An

empirical review.

2.2: Banking in Nigeria: A general overview.

The importance of banking in any modern economy cannot be immediately

quantified. This is because of its positive impacts on business activities all over the

globe. Banks not only play a role to their customers but also serve as “one of the

powerful indicators of economic trends”. They are set primarily to keep money in safe

custody and make such money available for economic activities (Onyike, 2012). It is an

organization normally a corporation, chartered by the state or federal government, the

principal functions of which are to receive deposit, honour instruments drawn against

them and pay interest on them as permitted by law (Rosenberg, 1985).

According to Gafoor (1995), cited in Onyike (2012:16), “banks are suited to

attract money, keep it in safe custody, lend it under safety, invest it profitably and enjoy

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the capacity to create the means of payment. And …maintain a balance between

income, liquidity and flexibility”.

The above definitions suggest two things, - first is that the clientele base of

banks (commercial banks) is not limited to only those who open accounts with them.

Second, banks serve as a legal store house for the safekeeping of money (and other

valuables) which they in turn offer as loans to those that meet the requirements for such

at an interest. In Nigeria, apart from the aforementioned functions of banks, they

facilitate business by rendering expert financial advice to their customers. Also by

discounting bills before their maturity dates, they (commercial banks) help to make

more money available for economic activities (Anyaele, 2003).

Historically, there is difficulty tracing the origin of banking to any period in

history. Ekwueme (2008:254) opines, “People have from time immemorial had ways of

storing valuables and transacting business in their different domains. The mention of

banks and banking by Jesus in the Bible attest to the existence of banks during his

earthly ministry”. Also, the idea that modern banking originated from the goldsmiths of

London of the seventeenth century still needs to be proven, because there were other

non-Anglophone nations like the middle-easterners and Asians who had little contacts

with the West, but who had their own way of banking. It is safer therefore to argue that

the English styled banking model originated from the goldsmiths of London. This

banking model was however, copied in Nigeria, and other West African countries like

Ghana, Gambia, Sierra-Leone when they were British colonies (Onyike, 2012).

In Nigeria, banking did not develop until the 19th

century. Elder Dempster & Co.

and Mr. George William Neville were credited as pioneering the establishment of

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banking operations in Nigeria. African Banking Corporation (ABC) was the first bank

to be established in the country in 1892. It later metamorphosed into Bank of British

West Africa (BBWA) in 1894 and now First Bank of Nigeria (FBN). (Ogundipe, 1990;

Anayanwaokor, 1996). “Nearly two decades after, in 1917 the then Barclays Bank (now

Union Bank) was established. It took about thirty (30) years (in 1948) before another

bank, British and French Bank (now United Bank For Africa (UBA) was established.”

(Ekwueme 2008).

Although a number of banks were established between 1947 and 1954 these trio

forms the tripod of old (also called first generation) generation Nigerian banks, since all

of them excepting these trio were also consumed by the spate of failures that visited the

banking industry during that period (Uzoaga, 1981, Ituwe, 1983; Ekwueme, 2008). Post

independence Nigeria (1960 till date) saw the emergence of many commercial banks

that are today classified as new generation banks. According to Akpan (2002:11) in

1970, there were 14 commercial banks in Nigeria. The number grew to 20 in 1980; 58

in 1990 and fell to 51 in 1998”. However, after the consolidation exercise of the year

2006 by the Central Bank of Nigeria (CBN) only 25 banks were satisfied healthy

enough to operate. These include First Bank, UBA, Union Bank, Fidelity Bank,

Mainstream Bank, Skye Bank, Wema Bank, Sterling Bank, Eco Bank, Stanbic IBTC

Bank, FCMB, GT Bank, Access Bank, Zenith Bank, Equatorial Trust Bank (GTB),

Unity Bank etc. (Newswatch, 2006; Onyike, 2002).

It is note worthy to state here that the reforms that were witnessed in the banking

industry and its attendant mergers, acquisitions and or liquidations were done to secure

the interest of the banking public (customers) who were fast losing confidence on the

23

industry. It may not be out of place also to argue that some of the distressed banks in

the past were so because they did not give customer service, satisfaction and perception

adequate attention.

2.3: Customer Relationship Management: A Conceptual Appraisal.

Customer relationship management entails all aspect of interaction that a

company has with its customers, whether it is sales or service-related. It is often thought

of as a business strategy that enables business to understand the customer; retain

customers through better customer experience; attract new clients and contracts;

increase profitability; decrease customer management costs (Wikipedia.com) “It is an

all encompassing paradigm that revolves around the idea that maximizing customer

satisfaction inevitably maximizes the long-term profitability of an enterprise”

(Bitpipe.com, 2012:1).

According to Lawson (2012) in Onyebuchi (2013:23) “customer relations or

customer service, is the frontline between an organization and its customers.” She

further opined that “how customers are initially greeted and treated can influence their

decisions to do business with your company”. What this means is that people

(customers) would naturally stay with the company or where they are treated nicely and

would distance themselves from anyone who do not give them adequate attention. In

essence, if a customer is treated well, he/she will be encouraged to do more business

with your company. Contrarily, if a customer is taken for granted, the company will

have itself to blame because no customer wants to do a repeat purchase in a place where

his/her need are taken for granted. Onyebuchi (2013).

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Wailgum (n.d) sees customer relationship management (CRM) as a “strategy

used to learn more about customer’s needs and behaviours in order to develop strong

relationship with them”. He further states:

Good customer relationships are at the heart of business

success. There are many technological components to

CRM, but thinking about CRM in primarily

technological terms is a mistake. The more useful way to

think about CRM is, as a strategic process that will help

you better understand your customers’ needs and how

you can meet those needs and enhance your bottom line

at the same time. This strategy depends on bringing

together lots of pieces of information about customers

and market trends so you can sell and market your

products and services more.

The above suggests that CRM is not a one-step event as it involves series of careful

planning, monitoring, implementing and evaluation of trends in customer/buyer behaviours

or needs. Technology is just an aspect of CRM and therefore cannot be separated from

other elements of CRM. Both customers and product/service companies use technology for

the sourcing and storage of both customer and product information in a database for easy

accessibility and recall. Websites, automated teller machine (ATM), telephone and other

information systems are the modern means of aiding customer access to product/services

and company information. This in a way gives the customers a measure of satisfaction

since it reduces distance and ensures interactivity between them and the company thereby

enhancing their relationships. However, Wailgum (n.d) seems to argue that the application

of technology alone cannot ensure effective customer relations except of course it is being

managed professionally by the company. Moreover, CRM is seen by scholars as

approaches geared towards locating customer needs and satisfying them. That is to say that

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CRM entails building an enduring relationship through active customer service and total

quality management. This may not be possible with machine since it is only humans who

can gauge the pulse of fellow humans.

Historically, CRM is as old as business activities, but its place in organizational

growth and development was not taken seriously. However, it became very popular in

the 1990’s. Unlike other customer relations systems practiced in the past, CRM was a

dual system. Companies instead of gathering information that would enhance their

performance and profitability, now started giving back to the customers they served.

Many companies started giving out gifts to customers, discounts, perks or even money.

They believed that doing this would allow them to build a sense of loyalty in those who

bought their products (exforsys Inc; 2006:1). “It offered long term changes and benefits

to businesses that chose to use it. The reason for this is because it allowed companies to

interact with their customers on a whole new level. While CRM is excellent in the long

term, those who are looking for short-term results may not see much progress. One of

the reasons for this is because it was difficult to effectively track customers and their

purchases. It was difficult to realize that large companies were responsible for

processing tremendous amounts of data. This data needs to be updated on a consistent

basis (exforsys, inc., 2006) citied in (Onyebuchi, 2013).

In the last few years, CRM has transformed into the system that was once

envisioned by those who created it. However, the biggest problem with this system is

the price. A number of personalized Internet tools have been introduced to the market

and these have driven down cost of competition. While this may be the bane for

26

vendors who are selling expensive systems, it is a bonanza for small companies that

would otherwise not be able to afford CRM programs. (exforsys inc, 2006).

This system was then referred to as database marketing. The term “data base

marketing, was used to refer to the procedure for creating customers focus groups that

could be used to speak to some of the customers of the company. The clients who were

extremely valued were pivotal in communicating with the firm, but that process became

quite repetitive, and the information that was collected via surveys did not give the

company a great amount of information. Even though the company could collect data

through surveys, they did not have efficient methods of processing and analyzing the

information. As time went on, companies began to realize that all they really needed

was basic information. They needed to know what their customers purchased, how

much they spent and what they did with the products they purchased (exforsys Inc.,

2006).

CRM came to the fore because of widening market areas, stiff competition and

revolution in technological development. Instead of being static the information

processed within this modern system is dynamic just as CRM is and differs from

company to company as each company decides the sort of relationship it wants to have

with its clients. At the center of this however is research, which includes product

research, market research and insight into competitors CRM programs and so on.

2.4. CRM and customer satisfaction: A Review

CRM as a concept is concerned with building business relationships that would

enhance product quality, improve sales, and create a positive reputation/image for the

company and its products/service as well as to ensure repeat business. Its place in the

27

service industry like banking and others cannot be overemphasized. This is because

unlike product companies who can attract patronage by way of distribution and pricing,

the service industry (intangible products market) relies more on public perception to

enhance patronage. And this can only be achieved through customer satisfaction.

Russels Winer, in his work “Customer Relationship Management: A Framework,

Research Directions, and the Future” in 2001, assert that the notion of customer

satisfaction is being expanded to change CRM to CEM, customer experience

management.

He further states:

The idea behind this is that with the number of customer

contact points to these contacts and develop immediate

responses to negative experiences. These responses could

include timely apologies and special offers to increasing all

the time; it is more critical than even to measure the

customers’ reactions compensate for unsatisfactory service.

The idea is to expand the notion of a relationship from one

that is transaction-based to one that is experiential and

continuous. The bottom line is that companies that are not

taking a customer-centric view of their business operations

are going to be passed by those that view relationship-

activities as the key to long-term profitability.

The above suggests that relationship exists between customer satisfaction and

profitability. That is to say that the overall goal of CRM or any other relationship

programme is to deliver higher level of customer satisfaction than competing firms do.

Managers today realize that customers match realizations and expectations of product

performance, and that it is critical for them to deliver such performance at higher and

higher levels as expectations increase due to competition, marketing communications

and changing customer needs. Thus, managers must constantly measure satisfaction

28

levels and development programs that help to deliver performance beyond targeted

customer expectations (Winner, 2001:15).

To achieve high satisfaction levels, managers must ensure an improvement in

quality of service; how this is communicated to the customers and ensuring that such

meets customers’ demands or expectations. To achieve this will take a number of

skills/strategies which competing firms may take for granted. They include, according

to Lawson, “Listening skills, oral and written communication, analytical and problem

solving skills and team work based on the organizations commitment to meet customer

needs while making customers feel welcome and valued”. Lawson further elaborates:

Positive impressions: Customers expect to have their

concerns addressed quickly and efficiently. Customer

relations staff must be knowledgeable and courteous. Bad

experiences stay with customers; frontline employees can

make or break customer relationships.

Listening skills: Listening skills help customer relations staff

determine how to approach each customer’s Initial Contact:

First impressions may not always be accurate, but they do

create a lasting influence on customers. Friendly greetings

and a sincere interest in customer needs create a basis for

solving problems needs and meet their expectations. Using

listening skills to identify problems and determine how to help

and calm irate customers can establish customer confidence.

Effective communication; Customer relations depends on

effective communication. Problems can escalate when

communication fails. Communicating clearly verbally and in

writing can prevent misunderstandings and

misinterpretations of information by customers and co-

workers.

Problem solving: Problem solving and analytical skills

support customer relations; the ability to listen, interpret and

act appropriately when addressing needs is essential to

successful customer relations. Knowing when to escalate

customer concerns to the next level of customer support staff

is an important aspect of problem solving.

Teamwork: Working together to meet customer needs

establishes excellent customer service and provides learning

29

opportunities for customer relations staff. A customer

relations department counts on support from all employees

and departments when necessary.

Follow-up: Follow-up can help re-establish customer

confidence after resolving major problems. Calling customers

to ensure their satisfaction lets customers know that they have

valued.

However, CRM despite its unique ideals and strategic placing in company’s growth and

profitability have failed in many instances to deliver the needed results to companies

that adopt them. In a study entitled “customer relationship management (CRM)

evaluation, diffusing CRM benefits into business process, Sigala Mariama (2004) noted

that the deployment of CRM applications has not always delivered the expected results

while many CRM initiatives have failed.” The study was conducted across the Greek

tourism and hospitality firms from which 127 usable copies of questionnaire were

returned, out of the 800 copies sent to the managing directors of the 800 largest Greek

tourism and hospitality firms. The aim was to examine the relationship between the

perceived benefits of different types of CRM exploitations with corporate goals and

sophistication of ICT management practices. The study concluded that “despite the

wide adoption of CRM applications in general but also in tourism and hospitality firms

in particular, several CRM projects have been reported to fail, creating big confusion

regarding the business benefits and the success factors of CRM implementation”.

In another study by Evangelos Xevelonakis in 2005, cited in Onyebuchi (2013:43)

“Developing retention strategies based on customer profitability in telecommunications:

An empirical study” the author observed that “telecommunications companies fail to

make their CRM efforts pay off.

30

Controlling and evaluating the campaign’s results is a crucial factor”. Xevelonakis’

study, according to Onyebuchi (2013) therefore “addressed the deficiency by proposing

a framework for building effective customer strategies based on customer behaviour,

customer profitability and customer risk”.

Xevelonakis (2005) cited by Onyebuchi (2013:43) concluded in the study:

The expected profitability of a campaign should not be

the only criterion that decides whether the campaign is

carried out or not. Event an unprofitable campaign

might have a positive effect on the company’s other

products or services in the future.

In summary, the following aspects have to be considered by developing profitable

retention strategies:

- Defining churn, especially differentiating between interesting and

uninteresting churn.

- Identify data requirements for the churn model.

- Focusing on reducing the root causes of churn.

- Churn modeling is never a one-time event and needs to be incorporated into

the business process.

- Developing the right capabilities.

- Using existing customer information to produce knowledge, value, needs and

propensities.

- Delivering the generated customer knowledge to the customer touch points in

order to add value both to the customer and to the organization.

31

- Establishing a churn and campaign management process across the

organization.

- Introducing the right tools. When a campaign is developed, the purpose

(retention, win back, cross/up selling) and the competitive have to be

identified.

- In the calculation of the financial impact of a campaign. Only those turnovers

and costs/contribution margins which or not should be considered.

- The important assumptions (propensity to churn, divergence loss, duration of

the effect of a campaign) should be questioned critically (building scenarios)

and analyzed to measure the success (Xevelonakis, 2005:240).

Ben Light also conducted a study in 2001 that was titled “A Review of the issues

Associated with Customer Relationship Management Systems”. In this study, he

stated that CRM has become one of the buzzwords for many organizations. He cited

Ody’s (2000) definitions of the concepts of CRM thus: “The first is concerned with

precision marketing – the exact matching of a product or service with a customer’s

requirement in order to secure sales. The second relates to the notion of creating a

single, coherent view of customers as commonly associated with call centers. The

third is focused on consumer databases with CRM driving investment into data

warehouses”.

The study was guided by the following research questions:

Do differences in organizational maturity and perceptive of IT impact upon

selection, implementation and use? What are the consequences of trends toward

standard software, and application services provision models? What happens to the

32

role of the IS function in these scenarios and how will this impact organizational IT

selection, implementation and usage capacity?

The study therefore concludes that “the organizations in the study pin organizational

IT success upon IT based systems to varying degrees’’

Light (2000) further concludes:

Arguments can be made that organizations are sold the idea

of success by vendors although the cases show how

organizations may also sell themselves the idea via self-

induced peer pressure. That is, by wanting what competitors

or other organizations have.

Confusion about the definition of CRM is also a likely

contributor to the problems encountered by organizations.

Organizations need to understand the theoretical and

practical implications of the business perspective of CRM

before embarking upon a CRM system project. CRM systems

must be viewed as, potentially, a key component of the

operationalization of a CRM strategy not the only component.

These issues contributed to inadequate, at best and ill

informed, at worst selection processes – a critical vehicle for

understanding the resultant problems associated with

implementation and usage.

To be successful, CRM projects need to be viewed as more

than the implementation of IT. However, IT considerations

should not be ignored… Finally, the dominant management

perspectives of the CRM projects at the case organizations

suggest relatively low levels of maturity with regard to IT.

Operational efficiency is mistaken for competitiveness and the

competing interests of different groups is not recognized or

neglected.

33

2.5: Corporate Image, Public Confidence and Customer Service in Banks

According to Olins (1989), cited in Iroegbu (1999:29) corporate identity has four

dimensions, vis- product/services (what you make or sell), environments (where you

make or sell it, the place or physical context), information (how you describe and

publicize what you do), and behaviour (how people within an organization behave to

each other and to outsiders). It is therefore from these four components of corporate

identity that the public or customers base their judgment about a company’s corporate

image.

In a series of research conducted and compiled by Stewart Lewis, the director of

MORI (a research group) in 2003, it was discovered that business’s lack of apparent

concern-let alone priority-to issues of corporate citizenship is cavalier. Many large

companies are genuinely committed to fulfilling social responsibilities-but fail to

communicate actively enough to convey it. This directly affects both the image and

reputation of such company. It therefore goes to say that “If the image is false and our

performance is good, it’s our fault for being bad communicators. If the image is true

and reflects our bad performance, it’s our fault for being bad managers… unless we

know our image, we can neither communicate nor manage (Bernstein, 1983) cited in

Lewis (2003).

Lewis (2003) in his study found that apart from July and December 1998 when

respondents had 80% and 50% favourable opinions as against 10% and 20%

unfavourable opinions respectively, the remaining years show a significant increase of

50% (July 1999), 60% (Dec. 1999), 50% (July 2000), 55% (Dec. 2000), 70% (July

2001) and 40% (Dec. 2001) unfavourable opinion as against 40% (July 1999), 25%

34

(Dec. 1999), 30% (July 2000), 10% (Dec. 2000), 2% (July 2001), 30% (Dec. 2001) and

80% (July 2002). This has a way of affecting patronage at almost the same proximal

rate. Companies should therefore instill confidence in the minds of their customers by

ensuring that their customer relations activities are adequately communicated to their

customers/clients. And also by paying adequate attention to objections by customers,

companies can project themselves as a customer friendly enterprise. Akuffo (1982),

opines that the “customers’ objections, as long as it is not an unconditional rejection, is

in reality the first sign that he is beginning to become interested”. Companies can

therefore capitalize on that.

In another study by Ernst & Young (2002:1) titled “global consumer banking

survey” the researchers assert, “amid sweeping regulatory changes, slow economic

growth and tightened margins, banks today are increasingly focused on their most

important stakeholders – their customers”. The researchers further stated that, “despite

their best efforts to attract and retain customers, customers’ confidence levels in banks

remain low. The survey which studied 28, 560 banking customers across 35 countries

sort to learn more about customer needs and preferences.

The survey in lieu of the findings makes the following suggestions for banks to

remain competitive.

Give customers the opportunity to choose by making promises and service offer more

transparent.

- Rebalance fee structures to achieve the clarity and sustainability required by

regulators and investors.

35

- Help customers shape their banking experiences by improving how they

provide information and advice, recruiting online affinity groups and by

developing flexible loyalty programs.

- Develop models around customer needs by reciprocating spending, including

increasing the use of low-cost digital models and using more innovative

technology.

Another study by Unegbu Elizabeth in 2012, titled “Relationship marketing in the

performance of STANBIC IBTC GROUP”, show that there exist a relationship

between the services rendered by Stanbic IBTC Group and the performance of the

company.

The research questions that guided this study are: is there a direct link between

organizational performance of Stanbic IBTC Group and the behaviours of its products

and workers; to what extent does the organizational relations of Stanbic IBTC Group

enhance its performance? What are the challenges confronting the practice of

relationship marketing in Stanbic IBTC Group? The staff and customers of the Stanbic

IBTC bank and Stanbic IBTC Pension managers formed the population of the study.

The findings show that the behaviours of the product and workers find

expression in customer-oriented services, such as “sensitivity to customer needs;

commitment to customer satisfaction; building customer confidence; direct marketing,

and e-marketing”. All these emphasize a relationship that must exist between the

company staff and the clients (Unegbu, 2012). Such relationship must emphasis

customer needs in order to appeal to customer sensibility and instill his/her confidence

in the product or the company. According to Winer (2001:16) “any contact or touch

36

points that a customer has with a firm is a customer service encounter and has the

potential to gain repeat business and help CRM or have the opposite effect”. Winer

(2001) divided customer service two - proactive and reactive service. While in the

former, the manager does not wait for customers to contact the firm but rather be

aggressive in establishing a dialogue with customers prior to complaining. The later

only reaches out to the customers when a problem exists. Many companies perform

reactive customer service through e-mails, telephones etc.

Another study in 2006 “Queue Efficiency in Nigerian Banks: A comparative

analysis of old and new generation banks” by Kasum and Olaniyi, sees every

relationship as a game and banker-customer relations is not an exception: they argued

that the corporate objective of any bank is maximization of shareholders wealth and this

can only be achieved if customers are retained and satisfied through proactive customer

service.

Due to increased level of awareness, customers today demand improved value

from their chosen banks. Queue system becomes one of the innovations in banking

which has strengthened customer service. However, queues are formed when there are

many customers to be attended to. According to the study, the determinant of time spent

in a bank include, number of customers, nature of transaction, staff efficiency,

availability of materials etc. The amount of time spent on the queue in banks is subject

to the number of customers that a bank has and the frequency of such customers to the

banks. While just 23.9% bank with old generation banks, 51.5% bank with new

generation banks, the remaining 24.6% bank with both. The results also show that the

‘nature of business’ and ‘salary points’ are the most prominent reasons for patronizing a

37

bank, while the number of customers and the levels of staff efficiency determine time

spent in banks. The results further indicated that ‘the time spent on the queue for

services in old generation banks is in aggregate longer than that of the new generation

banks and that timely service delivery could be an attraction to bank customers.

Because, human beings are by nature impatient beings, the study suggested that

banks should improve their services to customers especially in the area of timely

delivery of service to reduce the probability of losing customers to competing banks.

2.6: Theoretical Framework.

For the purpose of this work, two out of the many theories in the area of public

relations shall be used. They are the social comparison theory and the stakeholder

theory.

Social comparison theory: - This theory as was propounded by Leon Festinger

in 1954. It starts with the premise that humans have an innate drive to accurately

evaluate their opinions and abilities. Festinger postulated that people seek to evaluate

their opinions and abilities by comparing them with those of others.

People will, moreover, take action to reduce discrepancies in attitudes, whether

by changing others to bring them closer to oneself, or by changing one’s own attitudes

to bring them closer to others, and will likewise take action to reduce discrepancies in

abilities, for which there is an upward drive to improve one’s abilities. Thus, Festinger

suggested that the “social influence processes and some kinds of competitive behaviour

are both manifestations of the same socio-psychological process… Namely, the drive

for self-evaluation and the necessity for such evaluation being based on comparison

38

with other persons. (www.wikipadea.com/social comparisontheory.

Retrived4/12/2012).

As part of this study, Festinger set forth some hypothesis, some of which are as

follows: -

1. There exists, in the human organism, a drive to evaluate his opinion and

abilities.

2. To the extent that objective, non-social means are available, people evaluate

their opinions and abilities by comparison respectively with the opinions and

abilities of others.

3. The tendency to compare oneself with some other specific persons decreases

as the differences between his opinion or ability and one’s own increases.

4. If persons who are very divergent from one’s own opinion or ability are

perceived as different from oneself on attributes consistent with the

divergence, the tendency to narrow the range of comparability becomes

stronger.

This theory is relevant to the problem of study because it works on the assumption that

people (even organizations) have innate desires to be at per with their peers in terms of

their social standing and choice/decision making. The purpose of this social comparison

is therefore to evaluate themselves and determine the areas that may require

improvement.

Among the customers, this comparison helps them in making the right choice of

the financial institution to bank with. This comparison may be in terms of their mode of

39

operation, asset base, or customer service. This theory is relevant to this study because

human beings are motivated by the perceptions they hold.

On the other hand, banks continuously do an assessment of their service

alongside their peers in the market place. Such assessment will let them know if they

are lagging behind in some aspects of their operations or whether they are ahead of

competitors. The banking sector thrives on speculation, perception and confidence

(trust), therefore, a periodic evaluation of its strengths, weaknesses, opportunities and

threats in relation to that of the competitors is not ruled out as this will help them

determine not only their placing in the market place but also in the minds of the

customers and the general public.

The Stakeholder Theory. R.E Freeman propounded this theory in 1994. It begins with

the assumption that values are necessarily and explicitly a part of doing business. It

pushes managers to be clear about how they want to do business, specifically, what

kinds of relationship they want and need to create with their stakeholders to deliver on

their purpose.

This theory, according to Freeman, Wicks and Parmar (2004:364), is articulated

into two core questions (1) what is the purpose of the firm? (2) What responsibility does

management have to stakeholders? It underscores the importance of building a strong

relationship between an organization and its stakeholders (in this case – customers). It

therefore draws a line between the purpose of the organization and its human relations.

This is because; purpose cannot be achieved without effective human relations

(communication). Freeman, et al. (2004:364), assert that managers must develop

40

relationships, inspire their stakeholders and create communities where everyone strives

to give their best to deliver the value the firm promises”

This theory explains that whatever the ultimate aim of the corporation or other

form of business activity, managers and entrepreneurs must take into consideration the

legitimate interests of those groups and individuals who can affect and (or be affected

by) their activities (Donaldson & Preston, 1995). The customers/clients are the reasons

banks are in business. It is therefore the duty of the customer relations officer/manager

to fashion out strategies to ensure that the interest of the customers is not undermined.

A positive image of the banks should be created in the minds of the customers because

the perception (opinion) of the customers is at the core of every customer relations

activities. The goal of customer relations manager should be to create and sustain the

most positive customer relationships possible in order to gain referrals and repeat

business. It also involves tracking trends and opinions to make improvements on

products and services. This helps businesses to be ahead of the competition in terms of

creating innovative new products that meet the need of evolving consumers.

(www.ehow.com/customerrelations/retrived 4/12/2012).

41

REFERENCES

Akpan, I. (2002). Regulation and deregulation and bank marketing in Nigeria: A

review of literature. Journal of African Business. P.III.

Akuffo, K. (1983). 25 past questions and suggested answers for the marketing students.

(Unpublished lecture notes). Department of marketing, School of Accountancy

and management Studies. Abia, Abia State.

Anyanwokoro, M. (1996). Banking methods and processes. Enugu: Hosanna

Publications.

Ben Light (2001). A review of the issues associated with customer relationship

management systems. (A paper presented at the 9th

European conference on

information systems).

Bitpipe.com. (2012). Overview of customer relations. Retrieved April 14, 2013 from

http://www.bitpipe.com/tlist/CRM.html.

Ekwueme, A. (2008). Bank consolidation in Nigeria and challenges to the financial

relations practitioners: An analysis. International Journal of Communication,

p. 252-270.

Ernst & Young (2012). Global banking survey. Retrieved April 14, 2013, from

http://www.ey.com/GL/en/industries/financial-services/banking…ca…

Exforsys Inc. (2006). The history of CRM. Retrieved April 14, 2013 from

http:www.exforsys.com/tutorials/crm.html.

Iroegbu, E. C. (1999). Restoring the image of the banking industry in Nigeria through

corporate advertising and public relations. (Unpublished M.A Project).

Department of Mass Communication, University of Nigeria, Nsukka.

Ituwe, C. E. (1983). Elements of practical banking. Ibadan: University Press.

Kasum, A. S. and Olaniyi, T. A. (2006). Queue efficiency in Nigerian banks. A

comparative analysis of old and new generation banks. (Unpublished work).

Department of Accounting, University of Ilorin.

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Lawson, K. K. (2012). Definition of customer relations. Retrieved April 15, 2013

management systems. (A paper presented at the 9th

European conference

on information systems).From http://www.ehow.com/facts4912614definition-

customer-relations.html#ixxzzlvycplepb.

Lewis, S. (2003). Reputation and corporate responsibility. London: MORI.

Ody, P. (2000). Selling a new strategy. Financial times supplement. Spring. 6-7.

Ogundipe, Victor (1990). Public relations in banking, in Okigbo, C. (ed.) Advertising

and public relations. Enugu: Snaap Press Ltd.

Onyebuchi, A. C. (2012). Audience perception of CRM operators’ customer relations

programmes in South East Nigeria. (Unpublished Ph.D proposal). Department of

Mass Communication, University of Nigeria, Nsukka.

Onyike, I. E. (2012). A study of newspapers’ coverage of the Islamic banking

controversy in Nigeria (Unpublished M.A. Project) Department of Mass

Communication, University of Nigeria, Nsukka.

Rosenberg, J. M. (1983). Dictionary of banking and financial services. New York: John

Wiley and Sons.

Unegbu, E. T. (2012). Relationship marketing in the performance of Stanbic IBTC

Group (Unpublished M.A. project). Department of Mass Communication,

University of Nigeria, Nsukka.

Uzoaga, W. (1977). Money and banking in Nigeria. Enugu: Fourth dimension

Publishers.

Winer, R. S. (2001). Customer Relationship management: A framework, research

directions and the future (Unpublished work) Haas School of Business,

University of California.

Xevelonakis, E. E. (2005). Developing retention strategies based on customer.

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from http://www.fh-hwz.ch/display.cfm/id/100013.

43

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design.

The research design used in this study consists of survey and in-depth interview.

Survey research, according to Osuala (1987:180), studies both large and small

population by selecting and studying samples chosen from the population to discover

the relative incidence, distribution and inter-relations of sociological variables.

Survey research has advantages. Sobowale (1983:25), cited in Iroegbu

(1999:35), states that questionnaires are used to standardize the researcher’s questions,

ensure that the interviewer asks exactly the same questions in the same way, guarantees,

as much as possible, uniformity of answers from the respondents; and facilitate data

processing through easy coding.

This method was chosen because the study required drawing information from a

sample of the population through the administration of the questionnaire. Additionally,

the method provided for the opinions of respondents to be taken as their attitudes.

In-depth interview on the other hand was adopted because it “provides more

accurate responses on sensitive issues. The rapport between respondent and interviewer

makes it easier to approach certain topics that may be considered taboo in other

approaches.”(Wimmer & Dominick, 2003:127)

3.2 Population of the Study

The population consists of all the banks in the southeast, as well as the human

population of these banks’ general publics in the southeastern region. However, since it

44

is impracticable to study all the 25 banks in Nigeria (Ekwueme, 2008:252), the

following banks have been selected for the study.

Old Generation: First Bank and United Bank For Africa (UBA)

New Generation: Zenith Bank and Guaranty Trust Bank (GTB).

These Banks were selected based on their spread, and international recognition as one

of the global 1000 banks (the banker, 2012:2) and by implication the best ten (10) in

Nigeria.

Second Segment: The states of Abia, Imo, Ebonyi, Anambra and Enugu are the five (5)

that make up the southeastern states. However, Enugu and Awka metropolis have been

purposively selected based on their strategic locations. Enugu was chosen because of its

position as the capital of old eastern region and therefore serves as the regional

headquarters of most of the banks. Awka on the other hand, was chosen because it is the

closest city to Onitsha, the commercial nerve center of the southeast.

3.3 Sample Size Determination

First segment. The total population of Enugu and Awka metropolis was obtained using

the NPC, (2011) projected census figures. This became necessary since the 2006 census

figures do not have the population of localities/districts within the metropolis under

study.

Thus we have as follows: -

Enugu Metropolis = 481, 201

Awka Metropolis = 302, 846

Total = 783, 047

45

From the above population, the sample size of 384 was selected using Australian

online sample size calculator for sample size determination (http://www.nss.gov.au/nss/

home.Asf/pages/sample+size+calculator.retrieved 29/1/2013). This was achieved by

selecting the confidence level (95%), population size (783,047), and the confidence

interval (0.05) before the calculation.

Second Segment: A scheduled interview was conducted with the customer relations

managers (CRM) of the four banks at each of their South-East regional headquarters.

For this reason therefore, we have four (4) customer relations managers to be

interviewed.

3.4 Sampling Technique.

One would have preferred to distribute the measuring instrument purposively to

only bank customers, but the choice of the general public became necessary on the

realization that the greater number of those banks targets are not only those already on

their customer list, but include those that have prospects of becoming their customers.

The public’s impression about any bank can influence one’s decision for or against the

bank.

For this reason, therefore, the sampling procedure, which necessitates the use of

multi-stage sampling, was adopted. To achieve this, Cluster, Quota and systematic

sampling procedures was used at various stages of the study.

46

S/N Clusters For Enugu Population Quota

1 Eneme 59,338 38

2 Trans-Ekulu 15,591 16

3 Abakpa 120,753 40

4 Achara L/out 66,957 30

5 Gariki 26,200 20

6 Uwani 42,460 30

7 G.R.A 27,243 20

8 New Haven 24,981 15

9 Ind. Layout 13,373 15

10 Ogui New Layout 54,949 30

11 Asata 29,656 20

TOTAL 481,201

CLUSTERS FOR AWKA

12 Awka North 112,192 50

13 Awka South 189,654 60

Total 301,846

Grand Total 783,047 384

3.5 Measuring Instrument.

The questionnaire was the measuring instrument for this study. This is because it

enabled the researcher to elicit relevant responses from the opinion of the respondents

47

on the phenomenon under study. Their responses were used to ascertain the public

perception of the old and new generation banks’ customer relations practices. Also

interview is used to elicit responses from the customer relations managers of the banks

to determine their distinct customer relations practices.

The measuring instruments contained questions drawn from the objectives of the

study in response to the research questions formulated for the study. The questionnaire

contained both closed and open-ended questions.

3.6 Validity and Reliability of Measuring Instrument.

The research instrument was affirmed by Creswell (2002:420) and Ohaja

(2003:84) as instrument for data collection in studies that make use of the survey

research method. Their affirmation points to the fact that there is internal consistency in

the use of the instruments based on the relevance of the questions posed to the

respondents.

On the other hand, the instrument also was content validated. This was done by

presenting the measuring instruments to assessors or validators (including the project

supervisor) who content tested the measuring instrument against the research objectives

to ensure the suitability of the measuring instrument.

However, in order to ensure that the measuring instrument is reliable, a pilot

study (pre-test) was conducted. Pilot study was affirmed by Wimmer and Dominick

(2003:56) as one of the best ways to test for the reliability of measuring scales. A

measure is therefore reliable if it consistently gives the same answer. Reliability is

achieved when a test is dependable, stable and consistent over time (Wimmer &

Dominic, 2003:56).

48

3.7 Method of Data Analysis.

Both quantitative and qualitative methods of data analysis were adopted for this

study.

For the quantitative analysis, frequency tables, simple percentages and charts

were utilized to analyze data gotten from the field survey through the questionnaire.

However, constant comparative technique is used to analyze qualitative data. This

method was chosen because the analysis involved comparing the responses received

from the customer relations managers of the four selected banks and that of the public.

In addition to this, all the responses gotten helped the researcher in her quest for a

comparative analysis of the old and new generation banks’ customer relations.

The constant comparative technique as was articulated by Glaser and Strauss

(1967) and has been subsequently been refined (Lincoln & Guba 1985), consist of four

steps (Wimmer & Dominick, 2003:112). These steps include:

1. Comparative assignment of incidents: This allows the units of the analysis to

be put into provisional categories after the data is set for analysis. As each

new unit is examined, it is compared to the other units previously assigned to

that category to see whether its inclusion is appropriate… Throughout the

process, the emphasis is on comparing units and finding similarities among

the units that fit into the category. (Wimmer & Dominick, 2003:112).

2. Elaboration and refinement of categories: According to Wimmer and

Dominick (p.113), during this stage, the researcher writes rules or

propositions that attempt to describe the under lying meaning that defines the

category… the ultimate value of this rule is that they reveal what you are

49

learning about your chosen topic and help you determine the research

outcome.

3. Searching for relationships and themes among categories: Here, the

researcher examines the propositional statements and looks for meaningful

connections. The goal of this phase is to generate assertions that can explain

and further clarify the phenomenon under study.

4. Simplifying and integrating data into a coherent theoretical structure: This

final stage entails writing the report that summarises the study. All the results

of the analyses are integrated into one coherent explanation of the

phenomenon the goal here, is essentially to arrive at an understanding of the

phenomena under investigation.

50

REFERENCES

Crewsell, J. W. (2002). Educational Research. London: Pearson Education Ltd.

Ekwueme, A. (2008). Bank consolidation in Nigeria and Challenges to the financial

relations practitioners: An analysis. International journal of communication, P.

252-270.

Iroegbu, Eugene C. (1999) Restoring the image of the banking industry in Nigeria

through corporate advertising and public relations (Unpublished M. A. Project),

University of Nigeria, Nsukka.

NPC (1999; 2006). National Population Census figures.

Ohaja, E. U. (2003). Mass Communication research and project writing. Lagos:

Johnletterman Ltd.

Wimmer, R. D. and Dominick, J. R. (2003). Mass media research: An introduction. (7th

edition) California: Walsworth, Centage Learning.

51

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

This chapter presents and analyzes the data collected from the field. Although

the sample size is 384, the analysis was based on the 376 copies of the questionnaire

that was filled and returned usable.

The analysis was divided into two segments – the questionnaire and interview

segments. However, the interview segment that analyzes a particular research question

comes immediately after the analysis of the questionnaire item for the same research

question. The questionnaire was analyzed using both quantitative and qualitative

means, while the interview segment was analyzed qualitatively. The interview data was

collected from the four regional customer relations managers of the four selected banks.

4.1 DATA PRESENTATION

Table 4.1.1: Gender Distribution of Respondents.

Variables Frequency Percentage

Males 163 43.4%

Females 213 56.6%

Total 376 100

Source: Field Survey, 2013.

The table above shows that 163 representing (43.4%) of the respondents were males,

while 213 (56.6%) were females.

52

Table 4.1.2: Age Distribution of Respondents

Variables Frequency Percentage

18 – 30 63 16.8%

31 – 43 183 48.7%

41 and above 130 34.6%

Total 376 100

Source: Field Survey 2013.

Table 4.1.2 shows that 63 (16.8%) out of the 376 respondents were between the ages of

18 – 30 years, 183 (48.7%) were between the age brackets of 31 – 44, while 130

(34.6%) were 44 years and above.

Table 4.1.3: Marital Status of Respondents.

Variables Frequency Percentage

Single 33 8.8%

Married 308 81.9%

Divorced 7 1.9%

Widow (er) 28 7.4%

Total 376 100

Source: Field Survey 2013.

Table 4.1.3 shows that 33 (8.8%) of the respondents were single, 308 (81.9%) were

married. 7 (1.9%) were divorced, while 28 (7.4%) were widows/widowers.

53

Table 4.1.4: Educational Qualification.

Variables Frequency Percentage

FSLC 12 3.2%

SSCE 29 7.7%

OND/NCE 82 21.8%

HND/B.Sc 210 55.8%

PGD/M.SC and

above

43 11.4%

Total 376 100

Source: Field Survey 2013.

The data in table 4.1.4 above show that 12 (3.2%) out of the 376 respondents were

FSLC holders, those with SSCE certificate were 29 (7.7%), OND/NCE were 82 (21.8%)

whereas HND/B.Sc/BA were 210 (55.8%) and PGD/M.Sc/MA and above were 43

(11.4%) respondents.

Table 4.1.5: The Bank the Respondents Patronize.

Variables Disposition Frequency Percentage

First Bank Old Generation 153 40.7%

UBA Old Generation 63 16.8%

Zenith Bank New Generation 67 17.8%

GT Bank New Generation 93 24.7%

Total 376 100

Source: Field Survey 2013.

54

Table 4.1.5 shows that 153 representing (40.7%) of the respondents banked with First

Bank, 63 (16.8%) banked with UBA, 67 (17.8%) went for Zenith Bank, while 93

(24.7%) respondents banked with GT Bank. This shows that a larger percentage of the

respondents (57.4%) banked with old generation banks while the summation of the new

generation banks shows that they have (42.6%) of the respondents on their customer

list.

Table 4.1.6: Period of Patronage by Respondents.

Variables Frequency Percentage

0 – 5 years 78 20.7%

6 – 10 years 103 27.4%

11 – 15 years 17 4.5%

Can’t say 178 47.3%

Total 376 100

Source: Field Survey 2013.

The options in table 4.1.6 show that 78 (20.7%) respondents have stayed between 0 – 5

years with their bank. 103 (27.4%) have been with their bank for 6 – 10 years.

However, while 17 (4.5%) agreed to have been with their bank for 11 – 15 years, 176

(47.3%) were undecided on the issue.

Questionnaire item 7: The responses on “what prompted the customers choice of

bank,” were varied. They ranged from nearness of the financial institution to their

office/business to salary point and others.

55

The responses show that 76 (20.2%) of the respondents chose their bank because

it was nearer to them, 183 (48.7%) didn’t have control over their decision since the

bank is where they receive their salaries.

It is however, interesting to note that 27 (7.2%) of the respondents went for the

bank that has better customer service orientation, while 36 (9.6%) sought advice from

neighbours/colleagues and friends before they made their choices. 43 (11.4%) went for

efficiency of service while 11 (2.9%) were undecided on the issue.

Research Question 1: What Difference(s) exists between old and new generation

banks’ customer relations packages?

Table 4.1.7: Have you had reasons to do business with any of the banks other than

the bank where you have account in?

(This analysis below is for questionnaire items 8 & 9).

Variables Frequency Percentage

Yes 376 100%

No 0 -

Total 376 100%

Source: Field Survey 2013.

All the respondents were unequivocal in their agreement to the question raised in

table 4.1.7 above.

Most of the respondents that banked with old generation banks agreed to have

had accounts with at least one new generation bank as an alternative option and must

56

have transacted businesses in many other banks which are old and new generation

banks.

Also, some of the new generation banks’ customers agreed to have accounts with

other new generation banks but none has with old generation banks as a second option.

Table 4.1.8: Do you think there is any difference in each bank’s mode of relating

with customers?

Variables Frequency Percentage

Yes 231 61.4%

No 55 14.6%

Can’t say 90 23.9%

Total 376 100

Source: Field Survey 2013.

Table 4.1.8 shows that 231 representing 61.4% of the respondents agreed that there is

no uniformity in banks customer relation’s practices. That is to say that each bank has

its own way of attending to customer needs. However, while 55(14.6%) of the

respondents disagreed, 90 (23.9%) were undecided on the issue.

Table 4.1.9: Is there any area you think your bank has an advantage over other

banks.

Variables Frequency Percentage

Yes 291 77.4%

No 36 9.6%

Can’t say 49 13%

Total 376 100

Source: Field Survey 2013.

57

The above table shows that 291 (77.4%) agreed that their bank has an advantage

over other banks in certain areas of their operations. 36 (9.6%) said no, while 49 (13%)

of the respondents were undecided.

Questionnaire item 12: What are those things other banks do which are absent in

your bank?

From the responses to the above question, the researcher set the following

categories for the analysis.

(i) Queue System

(ii) Efficient Service Delivery

(iii) Customer Friendliness

(iv) Customer Complaints

The analysis showed that the respondents were unanimous in their opinion that

Queue System in Nigerian banks is still a big problem. This problem makes

customers spend more time than necessary inside the banks. All the banks under

study have not found lasting solution to this despite their attempts in the past. Most

respondents believe that this is caused by banks negative attitude to expansion. They

suggested either opening more branches or employing more staff as measures to

check this problem.

Efficient Service Delivery: In this respect, the bank that was rated best in service

delivery is Zenith Bank. This was the opinion of 36% of the respondents, GTB was

rated 31%, First Bank 22% and UBA 11%.

Customer Complaint: The bank that was rated best in attending to customer

complaints is Zenith Bank (40%), this was followed by GTB at (26%), (16%) goes

58

to UBA, while First Bank stands at (18%), while other banks have customer

complaints units, First Bank has an Online Feedback Machine (OFM) which enables

the customers to make their complaints online. This system seems to appeal to the

highly literate and computer literate customers alone. From the respondents, it was

found that the information you get from that machine might not eventually solve

your problem, as it is programmed information on the computer.

N: B: The analysis show that new generation banks do better than the old

generation banks in terms of efficiency of service, customer service and complaints.

Questionnaire item 13: What are those things you think a bank should do to

win customers?

The responses to the above question show that individuals differ in their

expectations from their financial institution. In order to code data obtained from this

question, the units of analysis were set as follows: -

(i) Reduction in borrowing rates.

(ii) Efficient service delivery.

(iii) Interpersonal relationship with customers.

(iv) Corporate social responsibility.

(v) Advertising.

(vi) Encouragement of industry (S.M.E).

(vii) Constant innovations.

The above-mentioned units were in line with the responses obtained from the field

study. But, it becomes difficult to assign numbers to them since respondents gave

more than five responses. However, ‘efficient service delivery’, “interpersonal

59

relationship with customers”, and “constant innovations”, were those that received

most attention from the respondents.

Interview: The following questions were put to the customer relations managers in

order to elicit responses that will provide answers to the research question one.

What is the duty of the CRM of your bank? Are you aware of the classification of

banks in Nigeria into old and new generation banks? If yes, what category does

your bank fall into? What is the reason for your answer? What are the differences

between old and new generation banks customer relation’s practices? What would

you say your bank do that is not practiced in other banks?

Answers:

First Bank: Customer Relations/Care Units help the clients by providing them

with necessary assistance/information where needed. e.g. this Unit does ATM

activation, account retrieval and others. We are among the first generation banks,

because our stay here predates Nigeria’s independence. Our experience marks us

out; it is not right to compare a day old baby (new generation) and an adult. An

adult will always have more exposure. At First Bank, we are truly the first. Also the

numerous First Bank branches across the state attest to our excellent customer

service. We are constantly improving our operation. Our most recent effort is the

introduction of an Online Feedback Machine that allows you to make your complain

online and get your response via SMS or e-mail.

Zenith Bank: Customer care is geared towards customer satisfaction and

anything that ensures this is part of our responsibility. Old generation banks exist

in Nigeria in terms of history, but in practice they are non- existent especially since

60

the CBN consolidation exercise of 2006, which set a new guideline for bank

operations in Nigeria. So all banks, both old and new conform to the regulations

governing the sector. Our bank is relatively new. It is difficult to compare, because

banks have their different in-house policies and styles. Even among the so-called old

and new generation banks, you still find out that no two banks have the same

customer service package/orientation. For instance, we identify our customers by

name and on Fridays we serve coffee and sweets to our customers among other

things. I doubt if any other bank does that.

Guaranty Trust Bank: Customer care is all about taking care of customer needs

and as the customer relations manager you are bound as a matter of duty to ensure

that your customers’ needs are met. About old and new generation banks I can’t say

much. But I know that some banks have stayed longer than others. In terms of

operation, we are flexible in all aspects of our operation. I think the pre-

independence banks are more rigid in their operations. Some make heavy demands

on clients for things such as account opening and loan collection. At Guaranty Trust

Bank (GTB) we are different.

United Bank For Africa (UBA): The customer relations person’s duty is to

ensure that a cordial relationship exist between the bank and its clients. We are an

old generation bank and with that come the need to maintain the statuesque – a

legacy of service to our customers. We rank among the first three commercial banks

in Nigeria. Every bank has its own way of staying ahead of competition, but this has

nothing to do with generational shift since all the banks operate under the same

system.

61

Research Question 2: How accessible are these customer relations packages to

customers?

Questionnaire items 14, 15, 16, 17, and 18 were used to elicit the needed

responses to research question 2 from the respondents.

Table 4.1.10: Do you think that banks have different packages aimed at

satisfying customer needs?

Variables Frequency Percentage

Yes 376 100

No - -

Total 376 100

Source: Field Survey 2013.

Responses to the above question show that though the respondents were aware

that banks have distinct packages aimed at meeting customer needs, the respondents

could not identify the packages by their names. But the explanations they gave show

that they were talking about special accounts e.g. for pensions, students/kids account,

landed property account etc. Others included promos, and special gift offer during

yuletide and other special seasons.

62

Table 4.1.11: Between old and new generation banks, which would you say has

better customer service orientation?

Variables Frequency Percentage

New 294 78.2%

Old 82 21.8%

Total 376 100

Source: Field Survey 2013.

The results in table 4.1.11 above shows that 294 (78.2%) out of the 376

respondents believe that new generation banks have better customer service orientation

while 82 (21.8%) thinks otherwise.

Table 4.1.12: Do you think these customer relations packages are accessible to the

customers?

Variables Frequency Percentage

Yes 212 56.4%

No 144 38.3%

Can’t say 20 5.3%

Total 376 100

Source: Field Survey 2013.

Table 4.1.12 shows that 212 representing (56.4%) of the respondents believe that the

customer relations packages are accessible to customers, while 144 (38.3%) disagreed.

However, 20 (5.3%) of the respondents were undecided on the issue.

63

300

225

212

150

144

75

20

Table 4.1.13: To what extent are the customer relations packages accessible to

customers?

Variables Frequency Percentage

Large extent 187 49.7%

Some extent 85 22.6%

Can’t say 104 27.7%

Total 376 100

Source: Field Survey 2013.

From table 4.1.13, the results show that 187 (49.7%) believe that the customer

relations packages of banks are accessible to the customers to a large extent. 85

representing 22.6% of the respondents think that it is accessible to a some extent, while

104 (27.7%) were undecided.

Yes No Can’t say

Bar Chart 1: Accessibility of customer relation’s packages to customers.

64

Pie chart 1:Accessibility of customer relations to customers.

The interview: The following questions were asked to elicit the needed response to

research question 2.

“Are your customer relations packages made known to the customers or is it just

part of management’s informal way of improving operations? If yes, through what

means do you inform them about it? How far can you go in trying to satisfy customer

needs or complaint?

Answer:

First Bank: Yes, they are made known to them. Even at this, it is still part of our

operations to inform our esteemed customers about FirstBank’s new products/services.

In most cases, this occurs through face-to-face interactions with the customers at the

customer care desks. Other means include the Internet, advertorials and others.

Banking is a service industry and what this means is that we solve problems, so at First

bank, we go the extra mile to ensure that our customers are satisfied.

Large extent

Can’t say

Some extent

104 (27.7%)

85 (22.6%) 187 (49.7%)

65

Guaranty Trust Bank: Why not … although it’s not everything you say to your

customers. For instance, you don’t explain to them that you are obligated to welcome

them or that you’re supposed to put up a pleasant attitude towards them. But on request

we give out details of our operations, especially when a customer is having difficulty

understanding the packages/products. Our web pages, adverts and interpersonal means

are channels of passing information to our customers/clients.

Zenith Bank: Both of them. It’s enshrined in our operational guide. But you do not

need to be told to be pleasant to your clients. These are all important aspects of the

unwritten code for salesmanship. That is the intangible aspects of our operations. The

tangible aspects like account opening procedures, corporate social responsibility, the

types of services available for customers and others are explained to the clients who

may want to key into such. The Internet, periodicals and physical contact are all ways

of knowing things about Zenith Bank.

United Bank for Africa: of course. Even if it is part of our daily routine, we still

explain to the customers that look, this is what we have for you so that they will be

aware. At times, we have products/services that are not self-explanatory, so the onus is

on the customer care or our marketers to explain this to the clients. Our website is

another source of information about UBA. We go to professional length to satisfy our

customers. We are a service industry therefore your clients’ happiness is paramount

and the surest way to keep your job.

66

Research Question 3: What influence does customer’s perceptions have on their

choice of any particular bank in the country?

Questionnaire items 19, 20, 21, 22, and 23 were used to elicit the needed responses for

research questions 3 from the respondents.

Table 4.1.14: Between old and new generation banks, which would you advise

some one to patronize?

Variables Frequency Percentage

New generation banks 225 59.8%

Old generation banks 151 40.2%

Total 376 100

Source: Field Survey 2013.

The results in table 4.1.14 show that 225 representing (59.8%) of the respondents

would advise someone to patronize new generation banks while 151 (40.2%) went for

old generation banks.

300

225

200

151

100

0

New

Generation

Banks

Old

Generation

Banks

Bar Chart 2: Choice of Patronage

67

Also, sequel to the question in table 4.1.14 and bar chart 2, the respondents were asked

to state their reasons for the responses. Those that chose new generation banks did so

because of their “flexible approach” to banking (i.e. dynamism and closer attention to

customer needs without the choking bureaucratic bottlenecks associated with old

generation banks. On the other hand, old generation banks would be preferred

according to the respondents, because of its long stay and liquidity base.

Questionnaire item 21: What attracts you to a bank?

In order to analyze the responses obtained in regard to the above question (item 21), the

responses were categorized under the following:

(a) Good Customer Service.

(b) Efficiency of Operations.

(c) Financial Stability.

It was therefore deduced from the categorization scheme that 137 (36.4%) get

attracted to banks that have better customer service. Some of the responses coded

under good customer service category include the following, “the bank that understands

my need,” ‘friendly disposition towards customers/clients,’ ‘caring attitude,’ ‘the bank

that listens to all I have to say,’ ‘bank with an accommodating atmosphere’ etc.

The second category has 104 (27.7%) going for efficiency of operations. Under

this, the responses include “queue efficiency”, “good internet infrastructure,’ ‘good

cashier/employee rapport,’ ‘good networking’, ‘the bank that puts smiles on peoples

faces through their performance,’ ‘the bank that saves my time,’ among others.

Lastly, 135 representing 35.9% of the respondents went for financial security.

However, some of the responses coded under financial security include ‘a strong bank’,

68

‘a bank with a strong liquidity base’, ‘a reliable bank,’ ‘one that has a history of

service,’ ‘where I won’t have problems’, etc.

Table 4.1.15: Do you seek advice from people before you open account with any

bank.

Variables Frequency Percentage

Yes 274 72.9%

No 102 27.1%

Total 376 100

Source: Field Survey 2013.

Table 4.1.15 shows that out of the 376 respondents, 274 (72.9%) agreed that they

seek advice before they open an account with any bank, 102 (27.1%) however indicated

otherwise.

Table 4.1.16: would you say the opinions you hold against some banks are entirely

yours or are you being influenced by the opinion of others?

Variables Frequency Percentage

My opinion 181 48.1%

Influence 195 51.9%

Total 376 100

Source: Field Survey 2013.

The results in table 4.1.16 above show that while 181 (48.1%) were not

influenced by other people, 195 (51.9%) agreed that they were influenced in the opinion

they hold against some banks.

69

Pie Chart 2: Influence of opinion on choice of bank.

Interview

The following questions were thrown to the customer relations managers to elicit

the needed responses for research question 3. “How would you describe your

relationship with your customers? What would you say endear your customers to the

bank? Why do banks strive to maintain a positive impression on the minds of their

customers? Does the perception of the public have implication on bank operations?

First Bank: I believe that people stay where they are welcomed i.e. where they

feel at home. At first bank, we have a history of good service and that has kept us in

business. You do not beg to be loved; you earn it through hard work. Our image is part

of our existence. Just like in any other business, if you don’t have a good reputation,

then you are gone, your image as a thief, dupe or unserious person will definitely affect

your client base adversely. But if a client is satisfied, he will tell his friends and

neighbors and they may give you a trial.

Guaranty Trust Bank: I will say we understand ourselves and share in each other’s

experiences. We communicate on regular basis. And this is what endears them to

GT Bank. In relationships just like in business, little things like “smile and kind

words” matter a lot. We try to keep ourselves in check by being conscious about

48.1% 51.9%

My opinion

(Not influenced) Influenced by

others

70

everything because someone somewhere may want to discredit you. Image is

everything in banking because we deal with public fund and we should appear

capable of handling them. Moreover if I am good to you the tendency that you may

tell your friends who may want similar treatment is there.

Zenith Bank: Our relationship is built on trust and understanding. And this is what

our customers enjoy about us. Moreover, our different products/services endear our

customers to Zenith Bank. Positive image is necessary for banks because it is said that

someone who handle public fund should be above board. No matter your height, one

little scandal can pull you down. You remember the case of those banks that were

merged or liquidated in the past. So, public perception is pivotal to banking operations.

There are people whose opinions on any issue must necessarily be molded by the

opinions of others.

United Bank for Africa: Our relationship with our customers is very cordial. And

our long stay in the industry is a proof of our faithfulness and our clients have

confidence in us that’s why we keep growing in strength everyday. It is always best that

your clients do not misunderstand you because it can adversely affect your image and

business. Positive perception by the customers/public just like good image has a way of

improving sales/business.

4.2: Discussion of Findings.

This study as stated in the research objectives sought to do a comparative analysis of

customer relations activities of old and new generation banks in Nigeria. In order to do

a thorough investigation of the phenomenon under study, the researcher divided the

responding groups into two – the public and the customer relations managers of (CRM)

71

of the four banks selected for this study. However, while questionnaire served as the

measuring instrument for the public, the CRMs’ were engaged in an intensive interview.

The results show thus: -

Research Question 1: What difference exists between old and new generation

banks’ customer relation’s packages?

The study revealed that all the respondents were conversant with the operations of

both old and new generation banks, as they have transacted businesses in both. And this

puts them in a good stead to analyze the attitude of the banks towards their clients.

While 231 (61.4%) of the respondents believe that banks are not homogeneous in their

customer service, 55(14.6%) and 153 (39.8%) were negative and undecided on the

matter respectively. Also, the respondents were unequivocal in their opinion that the

queuing system in Nigerian banks is still an area of customer service which both old

and new generation banks have not found adequate solution to. According to Kasum

and Olaniyi (2003) “This problem is caused by the number of customers and staff (in)

efficiency”.

While new generation banks were rated best (67%) in terms of efficient service

delivery (Zenith Bank 36%, GT Bank 31%), old generation banks’ rating was put at

33% (First Bank 22%, UBA 11%). This seems congruent with another research finding

by Iroegbu (1999) who asserts that the quality of service in banks (First Bank, Union

Bank, UBA (old generation banks) and Savannah Bank,) were low but maintained that

the respondents “who said the quality and efficiency of service are low attributed it to

inefficient management…”

72

Likewise, new generation banks are better in handling customer complaints. They

are rated 66% (Zenith Bank 18%, GT Bank 26%), old generation banks stand at 34%

(First Bank 18%, UBA 16%).

It was however, agreed among the respondents that only good customer service

cannot win customers for banks but the inclusion of such factors as ‘reduction in

lending rates’, ‘efficient service delivery’, ‘good customer relations,’ ‘corporate social

responsibility’, ‘advertising,’ and others are the things that should be put in place for a

bank to win customers.

The interview section also revealed that old (First) generation banks only exist in

theory, but in practice all the banks operate under the same system especially since the

consolidation exercise of 2006. Bisi Onasanya, the Managing Director of First Bank

was quoted as saying: -

Yes, the bank is old, but the people running the bank today

are very young. The second part is that the critical success

factor for an institution like this is to constantly rejuvenate its

processes and services, based on developments in the market.

What we have been able to do successfully as an institution is

to dimension the market, analyze the expectations of the

market and develop and adapt our products offering to meet

the expectations of the market at any point in time (Omo,

2012).

Research Question 2:

How accessible are these customer relations packages to customers?

The results show that 212 (56:4%) of the respondents were of the opinion that the

customers have access to the customer relations packages of their banks while 144

(38.3%) disagreed. 20 (5.3%) were undecided on the issue. However, the new

73

generation banks appear to have better customer service orientation. This was the

opinion of 294 (78.2%) of the respondents while 82 (21.8%) thinks otherwise.

The response gotten from the interviews suggests that customer relations in

banks may not necessarily be different from customer relations of any other industry.

They seem to have an unwritten code detailing their activities and approaches. For

instance, in terms of creating awareness of their products/services the CRMs were

unanimous in their explanation that this is done through verbal communication, the

Internet and the media.

Research Question 3:

What influence does customers perceptions have on their choice of any particular

bank in the country?

The study revealed among other things that the image a bank projects can affect its

reputation negatively or positively, since a larger percentage of the population would

seek advice before patronizing any bank. This goes to show that the bank that gets the

highest rating among the members of the public may also have a larger number of

customers. For instance, 225 (59.8%) of the respondents would advice friends,

colleagues and family members to patronize new generation banks while a smaller

number of respondents 151 (40.2%) would go for old generation banks. More so, 51.9%

of the respondents were influenced to patronize a particular bank, while 48.1% said

they were not influenced.

Also the results show that the impression that the respondents have about the

banks is that new generation banks are more dynamic and have better innovative drives,

while old generation banks are more reliable in terms of liquidity.

74

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of Findings

The study did a comparative analysis of the customer relations practices of old and

new generation banks in Nigeria. In carrying out the study, the researcher selected a

sample of the population and distributed questionnaire to them. Also the regional

customer relations managers [CRM] of the four banks selected were engaged in an in-

depth interview. The focus was on assessing the different customer relations practices

of old and new generation banks to determine their areas of convergence and

divergence and the implications of such on customer patronage.

Using the universally accepted statistical tests, the researcher was able to make

some findings from the result of the test. It was discovered that no bank in Nigeria [both

old and new generation banks] has found lasting solution to the problem of traffic and

queuing system, which is attributed to staff inefficiency. However, new generation

banks were found to do better in terms of service delivery and handling of customers’

complaints.

It was also discovered that the term, old or first generation bank only exists in

principle today. This is because, the mergers and acquisitions that were witnessed

during the consolidation exercise have since eliminated the notion of old generation.

All the banks in Nigeria appear to have uniform way of communicating their

new products/ services to their customers. The Internet, the mass media, oral

communication amongst others, are the means of doing so. It was also found that the

image a bank projects can affect its operations and profitability positively or negatively

75

since a larger percentage of the population would seek advice before patronizing any

bank. By implication the bank that gets the best rating among the members of the public

may likewise have a larger number of customers.

Finally, the findings show that the impression the respondents have about the

banks is that new generation banks are more dynamic and have better innovative drives,

while old generation banks are more reliable in terms of liquidity.

5.2 Conclusion

The banking industry is a product of the society and therefore is being governed by the

circumstances prevailing in such society. In Nigeria, all commercial banks are being

regulated under the same legal code, while their operations are under the strict

supervision of the Central Bank of Nigeria. Therefore, their customer relations

activities, which form the nucleus of all banking activities, will not be different.

However, the discrepancies noticed among the banks customer relations is neither a

policy issue nor as a result of the old-new generation dichotomy but because of

approach and semantics. They all virtually do the same thing, and this has little effect

on the number of customers any bank has. However, the image each bank creates about

itself and the interpretation of such by customers/the public has a larger implication on

profit and patronage.

5.3 RECOMMENDATIONS

Following the analysis made, the literature reviewed and the results obtained,

some recommendations were made.

76

First, a wider study covering more commercial banks should be carried out by

future researchers. This will help to give more insight into the customer relations

activities of banks in Nigeria.

Also, since all efforts to eliminate long queues in Nigerian banks have not

yielded many results, it is recommended that banks employ more staffs as well as open

more branches or expand the existing ones where necessary. Also, the daily withdrawal

of the maximum of one hundred thousand naira (N 100,000) with ATM cards should be

reviewed upwards so that the customers would have lesser transactions to make inside

the banks. This is necessary because “the faster the customers get attended to, the more

the customer” (Kasum & Olaniyi, 2006).

Although it is agreed among bankers that a thin line exists between old and new

generation banks, old generation banks were found not to be giving adequate attention

to customer complaints and efficient service delivery. An improvement in these areas is

therefore advocated.

For a bank to remain relevant in the midst of competition there is an

overwhelming need to always emphasis customer/public relations in its activities, since

it cannot do without a favourable public image. Image in this instance, has to do with

the total impression of an organization, company, nations or individuals in the eyes of

those who constitute his/its public (Nworgu, 2002).

Lastly, banks should always conduct opinion surveys to determine the

impression of the customers about their operations rather than rely on their past glory.

The money market is ever dynamic and the industry players should be abreast of the

changes there in and flow with it.

77

REFERENCES

Kasum, A.S. and Olaniyi, T.A. (2006) Queue efficiency in Nigeria banks: A

comparative analysis of old and new generation banks (unpublished seminar

paper) University of llorin.

Nworgu, K.O (2002). Public relations: special issues & topics. Owerri: Ultimate

Books.

78

BIBLIOGRAPHY

BOOKS

Anyanwokoro, M. (1996). Banking methods and processes. Enugu: Hosanna

Publications.

Crewsell, J. W. (2002). Educational Research. London: Pearson Education Ltd.

Ituwe, C. E. (1983). Elements of practical banking. Ibadan: University Press.

Lewis, S. (2003). Reputation and corporate responsibility. London: MORI.

NPC (1999; 2006). National Population Census figures.

Nworgu, K.O (2002). Public relations: special issues & topics. Owerri: Ultimate

Books.

Ody, P. (2000). Selling a new strategy. Financial times supplement. Spring. 6-7.

Ogundipe, Victor (1990), “Public relations in banking”, in Okigbo, I. (ed), Advertising

and Public Relations. Enugu: Snaap Press Ltd., p. 241.

Ohaja, E. U. (2003). Mass Communication research and project writing. Lagos:

Johnletterman Ltd.

Okafor, C. O. (2006). Public Relations Principles & Practice. Enugu: CECTA Books.

Rhody, Ronald, E. (1991) in Lesley, P. (ed) The handbook of Public Relations and

Communications. London McGraw-Hill Book Company.

Rosenberg, J. M. (1983). Dictionary of banking and financial services. New York: John

Wiley and Sons.

Uzoaga, W. (1977). Money and banking in Nigeria. Enugu: Fourth dimension

Publishers.

Wimmer, R. D. and Dominick, J. R. (2003). Mass media research: An introduction. (7th

edition) California: Walsworth, Centage Learning.

79

JOURNALS

Akpan, I. (2002). Regulation and deregulation and bank marketing in Nigeria: A review

of literature. Journal of African Business. P. III.

Ekwueme, A. (2008). Bank consolidation in Nigeria and Challenges to the financial

relations practitioners: An analysis. International journal of communication, pp.

252-270.

NEWSPAPERS/MAGAZINES

Ebisemiju, Bankole and Okungbowa, Andrew, I. (1988, June) “Managing a Bank’s

public image in tough”. The Guardian, p. 29.

UNPUBLISHED MATERIALS

Akuffo, K. (1983). 25 past questions and suggested answers for the marketing students.

(Unpublished lecture notes). Department of marketing, School of Accountancy

and management Studies. Abia, Abia State.

Iroegbu, E. C. (1999). Restoring the image of the banking industry in Nigeria through

corporate advertising and public relations. (Unpublished M.A Project).

Department of Mass Communication, University of Nigeria, Nsukka.

Kasum, A. S. and Olaniyi, T. A. (2006). Queue efficiency in Nigerian banks. A

comparative analysis of old and new generation banks. (Unpublished work).

Department of Accounting, University of Ilorin.

Light, B. (2001). A review of the issues associated with customer relationship

management systems. (A paper presented at the 9th

European conference on

information systems).

Onyebuchi, A. C. (2012). Audience perception of CRM operators’ customer relations

programmes in South East Nigeria. (Unpublished Ph.D proposal). Department of

Mass Communication, University of Nigeria, Nsukka.

80

Onyike, I. E. (2012). A Study of newspapers’ coverage of the Islamic banking

controversy in Nigeria (Unpublished M. A. Project), University of Nigeria,

Nsukka, Nigeria.

Unegbu, E. T. (2012). Relationship marketing in the performance of Stanbic IBTC

Group (Unpublished M.A. project). Department of Mass Communication,

University of Nigeria, Nsukka.

Winer, R. S. (2001). Customer Relationship management: A framework, research

directions and the future (Unpublished work) Haas School of Business,

University of California.

INTERNET MATERIALS

Bitpipe.com. (2012). Overview of customer relations. Retrieved April 14, 2013 from

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Ernst & Young (2012). Global banking survey. Retrieved April 14, 2013, from

http://www.ey.com/GL/en/industries/financial-services/banking…ca…

Exforsys Inc. (2006). The history of CRM. Retrieved April 14, 2013 from

http:www.exforsys.com/tutorials/crm.html.

Lawson, K. K. (2012). Definition of customer relations. Retrieved April 15, 2013

management systems. (A paper presented at the 9th

European conference

on information systems). From http://www.ehow.com/facts4912614definition-

customer-relations.html#ixxzzlvycplepb.

Xevelonakis, E. E. (2005). Developing retention strategies based on customer.

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customer strategy management. Vol. 12, 3, 226-242. Retrieved April 20, 2013

from http://www.fh-hwz.ch/display.cfm/id/100013.

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APPENDIX

QUESTIONNAIRE

Department of Mass Communication

Faculty of Arts

University of Nigeria, Nsukka

December 2012.

Dear Respondent,

Request for the completion of Research Questionnaire

I am a postgraduate student of the above named department, conducting a

research on the “Customer Relations Practice in old and new generation banks: A

comparative analysis”.

This exercise is purely an academic one and all answers supplied to any question

will be treated with strict confidence. Individual respondents are therefore to give

accurate answers to the questions with regards to their individual opinions.

Thanks for your co-operation.

Yours faithfully,

Okorie Jane Onyinyechi

82

Bio Data (For the public only).

1. What is your gender? (a) Male ( ) (b) female ( )

2. In which of these age brackets do you belong? (a) 18 – 30 ( ) (b) 31 – 43 ( )

(c) 44 and above ( )

3. What is your marital status? (a) Single ( ) (b) married ( ) (c) divorced ( )

(d) Widow/widower ( )

4. What is your educational qualification? (a) FSLC ( ) (b) SSCE ( )

(c) OND/NCE ( ) (d) HND/BSC ( ) (e) PGD/MSc and above ( )

Part B (For the public only)

5. Which of these banks do you bank with? (a) First bank ( ) (b) UBA ( ) (c)

zenith bank ( ) (d) GT bank ( )

6. How long have you banked with your bank? (a) 0 – 5 yrs ( ) (b) 6 – 10 yrs ( )

(c) 11 – yrs ( ) (d) can’t say ( )

7. What necessitated your choice of bank?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

8. Have you had reasons to do business with any of the banks other than the

bank where you have account in?

(a) Yes ( ) (b) no ( )

9. If yes, mention the bank(s)--------------------------------------------------------

10. Do you think there is any difference in each bank’s mode of relating with

customers? (a) Yes ( ) (b) no ( ) (c) can’t say ( )

83

11. Is there any area you think your bank has an advantage over others?

(a) Yes ( ) (b) No ( ) (c) can’t say ( )

12. What are those ones other banks are doing which are absent in your bank?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

13. What are those things you think a bank should do to win customers?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

Do you know that banks have different packages aimed at satisfying customer

needs? (a) Yes ( ) (b) no ( )

14. If yes, what are the ones practiced by your bank?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

15. Between old and new generation banks, which would you say have better

customer relations packages?

16. Do you think these customer relations packages are accessible to the

customers? (a) Yes ( ) (b) no ( )

17. If yes, to what extent? (a) Great extent ( ) (b) little extent ( ) (c) can’t say ( )

18. Between old and new generation banks, which would you say has better

customer service orientation? (a) Old generation ( ) (b) new generation ( )

84

19. Which would you advise someone to patronize? (a) old generation bank ( )

(b) new generation bank ( )

20. Please state reasons for your answers in 19 and 20 above

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

21. What attracts you to a bank?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

22. Do you seek advice from people before you open account with any bank?

(a) Yes ( ) (b) no ( )

23. Would you say the opinions you hold against some banks are entirely yours

or are you being influenced by the opinion of others?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

85

Interview (Customer relations executives only)

1. How long have you worked for the bank in this capacity?

…………………………

2. What is your duty as the customer relations manager of your bank?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

3. Are you aware of the classification of banks in Nigeria into old and new

generation banks? ……………………………………………………………

4. If yes, which category does your bank fall into? ……………...………………

5. Please state reasons for your answer in 4 above.

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

6. What are the differences between old and new generation banks customer

relations practices?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

7. What would you say your bank has done or do that is not practiced by other

banks?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

86

…………………………………………………………………………………

8. Are your customer relations packages made known to the customers? Or is it

just part of management’s informal way of improving operations?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

9. If yes, through what mean do you inform them about it?

…………………………………………………………………………………

…………………………�……………………………………………………

……………………………………………………„…………………………

………………………�……………�………………………………………

10. How far can you go in trying to satisfy customer needs or complaints?

……..…………………………………………………………………………..

…………………………………………………………………………………

…………………………………………………………………………………

11. How would you describe your relationship with your customers?

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

12. What would you say endear your customers to the banks?

………………………………………………………………………………

………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………

13. Why do banks strive to maintain a positive impression on the minds of their

customers?

87

…………………………………………………………………………………

…………………………………………………………………………………

….…………………………………………………………………………...…

….……………………�……………………………………………………

14. Does the perception of the public have implications on bank operations?

…………………………………………………�……………………………

…………………………………………………………………………………

…………………………………………………………………………………

…………………………………………………………………………………