Customer Relationship Management and Patronage in Service Industry (A Study of Hotel)

TITLE PAGE
Customer Relationship Management And Patronage In Service Industry (A Study Of Hotel)
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CERTIFICATION
I hereby certify that this research project titled Customer Relationship Management And
Patronage In Service Industry (A Study Of Hotel) was carried out by
SCHOOLPROJECTTOPICS, of the Department of Business Studies, NNAMDI AZIKIWE
UNIVERSITY, AWKA . In partial fulfillment for the award of Bachelor of Sciences (B.Sc.) in
Business Administration, and management sciences.
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DATE
PROJECT SUPERVISOR
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DATE
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DEDICATION
I dedicate this project work to Almighty God, the creator and giver of wisdom, knowledge and
understanding, Who Has seen us through the successful completion of this work.
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ACKNOWLEDGEMENTS
I hereby use this medium to appreciate the efforts of those who contributed to the success of this
work. Firstly, I give glory to God Almighty who gave me the grace and ability to begin and
successfully complete this project. I will also like to acknowledge my dearest mummy
xxxxxxxxxxxxxxxx for her undiluted love, financial contribution towards my educational career
and her daily prayers upon my life. May God’s Blessings upon your life continue to increase and
know no bound.
I will also like to acknowledge and appreciate the efforts of my admirable lecturer who happens
to be my Supervisor xxxxxxxxxxxxxx, despite your tight schedule and daily engagement, you
granted me audience to go through my work and you never hesitated to put me through where i
needed correction, thank you very much Sir, and my prayer for you is that God will continually
bless you, Amen. To all my lecturers, xxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxx who have contributed positively to my academic pursuit
Special thanks also goes to all my colleagues and friends in school whom I have spent some few
years together with such as xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx
xxxxxxxxx; and also to my co-supervisees xxxxxxxxxxxxxxxxxxxxxxx. I just want to say that I
am grateful for having known you all and spent time together, I love you all. To my Special
Friend xxxxxxxxxxxxxx who took out time to review journals when at first I had no idea of how
to go about it, I salute you, and am grateful.
Finally, To all my well-wishers, my bosom friend in person of XXXXXXX who have always
encouraged and believed in me and also those who have been praying for me and who have
made this project to become a reality I thank you all and may God richly bless you, Amen.
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TABLE OF CONTENTS
CERTIFICATION Ii
DEDICATION Iii
AKNOWLEDGEMENTS Iv
ABSTRACT Ix
CHAPTER ONE 1
INTRODUCTION 1
1.0 BABCKGROUND OF STUDY 1
1.1 STATEMENT OF THE PROBLEM 3
1.2 RESEARCH QUESTIONS 4
1.3 OBJECTIVES OF THE STUDY 5
1.4 HYPOTHESIS OF THE STUDY 5
1.5 SCOPE OF THE STUDY 6
1.6 JUSTIFICATION OF STUDY 6
1.7 LIMITATIONS OF STUDY 6
1.8 OPERATIONAL DEFINITION OF TERMS 7
REFERENCES 9
CHAPTER TWO
LITERATURE REVIEW AND THEORITICAL FRAMEWORK 10
2.0 EVOLUTION OF CUSTOMER RELATIONSHIP MANAGEMNT 10
2.1 OVERVIEW OF CUSTOMER RELATIONSHIP MANAGEMENT 13
2.1.1 CATEGORIES OF CUSTOMER RELATIONSHIP MANAGEMENT 18
2.1.2 PERSPECTIVES OF CUSTOMER RELATIONSHIP MANAGEMENT 22
2.1.3 PURPOSES OF CUSTOMER RELATIONSHIP MANGEMENT 23
2.2 DEFINITION OF CUSTOMER RELATIONS SERVICE 25
2.2.1 CUSTOMER RELATIONS SERVICE CAPABILITIES 25
2.2.2 HOW TO IMPROVE CUSTOMER RELATIONS SERVICE 27
2.2.3 IMPLEMENTING CUSTOMER RELATIONSHIP MANAGEMENT 28
2.2.4 ORGANIZATIONAL PERFORMANCE 30
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2.6 CONCLUSION 38
REFERENCES 40
CHAPTER THREE
RESEARCH METHODOLOGY 44
3.0 INTRODUCTION 44
3.1 RESEARCH DESIGN 44
3.2 RE-STATEMENT OF RESEARCH QUESTIONS 45
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3.3 RE- STATEMENT OF HYPOTHESES 45
3.4 POPULATION OF STUDY 46
3.5 SAMPLE SIZE AND SAMPLING TECHNIQUE 46
3.6 DATA COLLECTION INSTRUMENT 47
3.7 FIELD WORK 47
3.8 DATA ANALYSIS 48
REFERENCES 49
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION 52
4.0 INTRODUCTION 52
4.1 DATA PRESENTATION 59
4.2 DATA ANALYSIS AND INTERPRETATION
4.3 TEST OF HYPOTHESES 64
4.3.1 DATA INTERPRETATION FOR HYPOTHESIS 1
CHAPTER FIVE
SUMMARY, CONCLUSION, AND RECOMMENDATIONS 67
5.0 INTRODUCTION 67
5.1 SUMMARY OF FINDINGS 67
5.2 LIMITATIONS OF STUDY 69
5.3 CONCLUSION 69
5.4 RECOMMENDATIONS 71
5.5 RECOMMENDATION FOR FURTHER STUDY 72
BIBLIOGRAPHY
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CHAPTER ONE
INTRODUCTION
1.0 BACKGROUNDOF THE STUDY
The basic reason for an organization’s existence is to satisfy the needs of the customers and
through that may way for repeat patronage which will open the avenue for increased profit
making. One of the factors affecting the performance of an organization is customer relationship
management, which is the main focus of study.
Customer Relationship Management concerns the relationship between the organization and its
customers and asserted customers are the life-blood of any organization be it a global
corporation with thousands of employees and a multi-billion turnover, or a sole trader with a
handful of regular customers Beks, (2008). Customer Relationship Management is the same in
principle for these two examples - it is the scope of CRM which can vary drastically.
The organization and the customers both have sets of conditions to consider when building the
relationship, such as wants and needs of both parties; organizations need to make a profit to
survive and grow customers want good service, a quality product and an acceptable price.
Thompson (2008) illustrated that customer relationship management is an effective tool for
achieving positive organizational performance and which reflects an increase in profit, goodwill,
better product and service delivery. In recent times, questions have been raised as regards the
interactions between organizations and their customers. But the result is that many organizations
have poor relationship with their customers and this will lead to loss of goodwill and low profit
earning in the organization.
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Customer relationship management looks at the whole process of what an organization is
involved in, whether it is a product or a service driven organization and it must involve every
aspect of what they do – from suppliers through to the end application, from their internal staff
through to their customer’s customer Kim Jenner, (2008).
The ultimate purpose of CRM, like any organizational initiative, is to increase profit. In the case
of CRM this is achieved mainly by providing a better service to customers than competitors do.
CRM does not only improve the service to customers, a good CRM capability will also reduce
costs, wastage, and complaints. CRM also reduces staff stress, because attrition - a major cause
of stress - reduces as services and relationships improve. CRM enables instant market research as
well: opening the lines of communications with your customers gives you direct constant market
reaction to your products, services and performance, far better than any market survey. Good
CRM also helps you grow your business: customers stay with you longer; customer churn rates
reduce while referrals to new customers increase from the increasing numbers of satisfied
customers; demand reduces on fire-fighting and trouble-shooting staff, the organization's service
flows and the teams work more efficiently and more happily.
Customer satisfaction is a vital CRM variable that must not evade our empirical scrutiny. Indeed,
customer satisfaction is central to successful application of the marketing concept. Many
company mission statements and marketing plans are designed around the goal of increasing
customer satisfaction. (Claudia, et al 2001)
The concept of relationship is very complex because it relates to different disciplines but with
regards to the topic at hand, relationship or business relationship can be viewed or described
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as being distinct from, but related to, concepts such as Enterprise relationship management,
consumer behavior and customer relationship management
Customer relationship management seeks to provide a complete and holistic model of business
relationships and business relationship value over time, in order to make the various aspects of
business relationships both explicit and measurable (Parvatiyar et al 2000).
A mature CRM model will ultimately support both:
· Strategic business research and development efforts,
· Tools and techniques that implement CRM principles.
As a result of the effectiveness and intensity of the concept of CRM, customers would benefit
from it through experiencing enhanced product delivery and organizations themselves would
gain from it through increase in customer database, increase in performance and profitability.
1.1 STATEMENT OF THE PROBLEM
Since the main goal of an organization is to satisfy the needs of customers which will lead to
increased profit. This indicates that without the existence of customers business activities will be
futile. Business owners often concentrate on the improvement of their products, this is one of the
basic features of the production concept. Often they ignore their customer care and relationship;
as a result, many of their customers move their purchasing interests to organizations who can
serve them better. The problem here is that they fail to understand that customers’ value, care
and concern is far above the product quality. So organizations tend to try their best as much as
possible to retain their customers and even attract more.
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Organizations at times are faced with the problems of
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Effectively targeting customers
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Developing strategy to achieve target behaviors.
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Behavior maintenance.
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Segmentation of customers based on customer profile and customer life-cycle stage.
Various methods and strategies have been employed by organizations in order to make sure that
they will achieve the above stated. But their efforts seem futile.
It is on this premise that this study wants to examine the impact or effect of customer
relationship management on organizational performance.
1.2 RESEARCH QUESTIONS
1. To what extent does customer relationship management enhance a high level of patronage in
the organization?
2. How does a good customer service affects the level of productivity in an organization.
3. What class of customer or classes of customer should enjoy the benefits of managing a
customer relationship?
4. What strategies should organizations take in seeking to achieve a successful and effective
5. Should customer relationship management be included in telecommunication industry?
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1.3 OBJECTIVES OF THE STUDY
GENERAL: The objective of this study is to find out if there is any link or relationship between
customer relationship management and patronage.
SPECIFIC: The specific objectives this study is aimed at are stated as below:
 To find out what propels customer patronage;
 To bring out the distinction between customer relationship and organizational
performance;
 To show that customer relationship management is a tool for acquiring high
organizational performance.
 To determine the role customer service relation plays in every organization
1.4HYPOTHESIS OF THE STUDY
Below is the hypothesis that will guide the researcher in making assumptions and analysis.
Hypothesis 1
H0: Customer relationship management has no significant effect on organizational performance.
H1: Customer relationship management has a significant effect on organizational performance.
Hypothesis 2
H0: Good customer relations/service does not have positive impact on organizational performance.
H1: Good customer relations/servicehave positive impact on organizational performance.
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1.5 SCOPE OF THE STUDY
This research work focuses on ! Customer Relationship Management And Patronage In Service
Industry (A Study Of Hotel) .A good CRM system is very vital and of utmost importance in every
business organizations, but for the purpose of this research, the concern of the researcher is been
geared towards the Impact of Customer Relationship Management in the telecommunications
sector of the economy.
1.6 JUSTIFICATION OF THE STUDY
This research study will be useful for consumers, producers, managers and government. This
work is carried out because recent research findings show that customers still complain of ill-
treatment by company attendants and those entangled in service deliveries. This means that in
some organizations, the customer is not yet the king as the saying goes that “the customer is
always the King”.This study intends to show the effect of customer relationship management on
organizational performance so that the aims and objective of the organizations can be achieved
with minimum error.
1.7 LIMITATIONS OF STUDY
In carrying out this research there are possible constraints which may occur which pose little
hindrance to the effective and successful completion of the project work by the researcher. Such
constraints are highlighted as follows; financial constraint i.e, there is limited finance available in
harnessing research materials such as foreign journals, publications, e.t.c. because the cost of
getting research journals were quite enormous to be used in the research work. Also, the stress of
getting respondents to fill questionnaires being administered to them right on time were some of
the challenges being encountered by the researcher.
1.8 DEFINITION OF UNFAMILIAR TERMS
1. ORGANIZATIONAL PERFORMANCE
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Organizational performance comprises the actual output or results of an organization as
measured against its intended outputs (or goals and objectives).
Specialists in many fields are concerned with organizational performance including strategic
planners, operations, finance, legal, and organizational development.
2. CUSTOMER LOYALTY
This is defined as the degree to which customers are predisposed to stay with the product or
service and resist competitive offers. Having a loyal customer base translates into lower costs,
higher margins and greater profits.
3. CUSTOMER PROFILING
This is the analysis and classification of customers based on personal information such as
shopping habits or behavioral patterns e.t.c. The principle behind customer profiling is to gain
customer loyalty at minimal cost by designing marketing plans that appeal to a larger percentage
of target customers and initiate them into taking desirable action.
4. CUSTOMER CENTRICITY
This can be said to be a set of disciplines and practices that allows companies to treat different
customers differently, thereby gaining strategic advantage leading to expansion of revenues and
increase in profitability.
5. CUSTOMER STRATEGY
Customer strategy involves examining the existing and potential customer base and identifying which
forms of segmentation are most appropriate.
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6. CUSTOMER SEGMENTATION
This refers to the process of dividing customers into mutually exclusive groups, presumably
because customers within each group are more similar to each other than to others.
7. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
CRM is a strategic approach that is concerned with creating improved shareholder value through the
development of appropriate relationships with key customers and customer segments.
8. ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT (ECRM)
Electronic customer relationship management (E-CRM) is a comprehensive business and marketing
strategy that integrates people, process, technology and all business activities for attracting and retaining
customers over the internet and mobile phone to reduce costs and increase profitability by consolidation
the principles of customer loyalty. Therefore, the results of electronic customer relationship management
performance are repeat purchase, word of mouth, retention, cross buying, brand loyalty and customer
satisfaction.
9. CUSTOMER SATISFACTION
This refers to the benefits derived by a customer after using a particular products or services over
a certain period of time.
REFERENCES
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Claudia, J.A et al (2001). “Evolution of a Customer Centric Enterprise.Penguin Publishers
London.
Paul, B. and Kim J, (2008). “Information Builders” Copyright Really Simple Systems. New
York. All rights reserved.
Thompson, G.O. (2008). “The Emerging practice of Customer Relationship Management” New
York: Downing publishers.
Parvatiyar. E, John V(2000). “Customer Relationship Management: Emerging Practice, Process,
and Discipline”, Journal of Economic and Social Research 3(2) 2001, 2002 Preliminary
Issue, 1-34.
CHAPTER TWO
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LITERATURE REVIEW
2.0 EVOLUTION OF CUSTOMER RELATIONSHIP MANAGEMENT
Customer Relationship Management evolved from business processes like relationship
marketing (RM) and the great amount of attention given to improving customer retention
through the effective management of customer relationships.Winer S. (2001). He gave three
developmental stages of customer relationship management, which are:
1. 1980: Database Marketing,
2. 1990: Foundation of Customer Relationship Management
3. Present: The Future of Customer Relationship Management
1980: Database Marketing
The 1980s saw the emergence of database marketing, which was simply a catch phrase to define
the practice of setting up customer service groups to speak individually to all of a company’s
customers. In the case of larger clients, it was a valuable tool for keeping the lines of
communication open and tailoring service to client’s needs. In the case of smaller clients,
however it intended to provide repetitive survey-like information that cluttered databases and
didn’t provide much insight. As companies began tracking database information, they realized
that the bare bones (what customers wanted) were all that was needed in most cases; what they
buy regularly, what they spend, and what they do. The promise of database marketing is to speak
individually to countless customers. The reality was that, it’s too costly, too difficult, and doesn’t
pay out on the bottom line, except in the case of business-to-business key account marketing.
The compromise: a little database marketing goes a long way which is good news for everyone
except for technology vendors.
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1990: Foundation of Customer Relationship Management
The 1990s saw the introduction of advances in this system. It was during this time that the term
customer relationship management was introduced. Unlike previous customer relationship
systems, CRM was a dual system, instead of gathering data for their own use, they began giving
back to their customers not only in terms of the obvious activity and spending patterns. CRM
was now being used as a way to increase sales passively as well as through active improvement
of customer service. Customer relationship management is the system that is responsible for
introducing things such as frequent flyers, gifts, and credit card points. Before CRM evolved,
this was rarely done, customers would simply buy from the company, and little was done to
maintain their relationship. Before the introduction of CRM many companies didn’t feel the need
to cater for their customers. In the minds of the executives, they have tremendous resources and
could replace customers whenever it became necessary. While this may have worked prior to the
1980s, the introduction of the information age allowed people to make better decisions about
which companies they would buy from, and global competition made it easier for them to switch
if they were not happy with the service they are getting. As of now Nigeria has up to four
telecommunication companies which are facing intense competition. Each one of them are
offering almost the same service and charging almost the same rate, and each of them know that
for them to survive they must collect necessary information from customers as well as giving the
customer information back in return too.
PRESENT: The Future of Customer Relationship Management
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Today, Customer Relationship Management is being used to achieve the best of both worlds.
Companies want to maintain strong relationships with their clients while simultaneously
increasing their profits. The CRM systems of today could be called TRUE CRM systems. They
have become the systems that were originally envisioned by the pioneers of this paradigm.
Software companies have continued to release advanced software programs that can be
customized to suit the needs of companies that compete in variety of industries. Instead of being
static, the information processed within modern CRM systems is dynamic. This is important
because we live in a world that is constantly changing, and organizations that want to succeed
must constantly be ready to adapt to these changes. Real customer relationship management as
we see it today began earnestly in the early years of this century. As software companies began
releasing newer, more advanced solutions that were customizable across industries, it became
feasible to really use the information in a dynamic way. Instead of feeding information into a
static database, for future reference, CRM became a way to continuously update understanding
of customer’s needs and behavior. Branching of information, sub-folders, and custom-tailored
features enabled companies to breakdown information into smaller subsets so that they could
evaluate not only concrete statistics, but information on the motivation and reaction of
customers.
Today, CRM is still being utilized most frequently by companies that rely on two distinct
features: customer service or technology. According to Anderson (2000), The three sectors of
business that rely most heavily on CRM and use it to great advantage are:
 Financial services sector
 A variety of high tech corporations and
 Telecommunications industry.
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The telecommunications industry in particular, tracks the level of customer satisfaction and what
customers are looking for in terms of changes and personalized features.
2.1 OVERVIEW OF CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management is widely described as a strategy, processes and practices or
methodology. Customer relationship management is not just something that is done once to new
customers it is a continuous process. Customer Relationship Management, is an essential part of
modern business management.
As pointed out by Claudia et al (2001), “customer relationship management can be seen as the
alignment of business strategy, organization structure and culture, and customer information and
technology so that all customer interactions can be conducted to the long-term satisfaction of the
customer and to the benefit and increase in performance of the organization”.
Newell (2000), viewed Customer Relationship Management as one of the newest innovations in
customer service today. Customer relationship management helps management and customer
service staff to cope with customer concerns and issues. The strategy involves gathering a lot of
data about the customer, data collected are used to facilitate customer service transactions by
making the information needed to resolve the issue or concern readily available to those dealing
with the customers. This will often lead to more customer satisfaction and, a better business
operation in terms of profit and performance. In essence, Customer Relationship Management
systems are of great help to the management in deciding on the future course of the organization.
( Gummesson, 2004).
A commonly cited definition of CRM is that by Antonides et al (1999), which goes thus as:
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“Customer Relationship Management is the establishment, development, maintenance and
optimization of long-term mutually valuable relationships between customers and organizations.
Greenberg (2001), noted thatCustomer Relationship Management (CRM) includes the
methodologies, strategies, software, and web-based capabilities that help an enterprise organize
and manage customer relationships. It is the collection and distribution of all customer data to
different areas of the business.
Customer Relationship Management (CRM) is a concept to enhance a company’s ability to
retain customers and gain strategic advantage over its competitors. It is focused on creating and
managing relationships with customers more effectively through detailed and accurate analysis
of consumer data using various information technologies, (Gosney G. et al 2000). Customer
relationship management helps to achieve organizational goal as well as improve the experience
that customers get from the organization.
According to a research carried out in the United States in 2006, the conclusion was adopted that
the quality of services that an organization renders to its customers will affect their profitability
and that is why they have to manage these customers so as to get the best from them.
CRM as a strategy goes beyond increasing transaction volumes and level of sales. Its main
objective is to increase profitability, revenue and customer satisfaction. Simply put, CRM is a
strategic process rather than a technical issue. This is a significant change of paradigm and a
quantum leap in terms of how we look at our business activity.
In the marketing literature the terms customer relationship management and relationship
marketing are used interchangeably. Nevin (1995) argues that, these terms have been used to
reflect a variety of themes and perspectives. Some of these themes offer a narrow functional
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marketing perspective while others offer a perspective that is broad and somewhat paradigmatic
in approach and orientation. A narrow perspective of customer relationship management is
database marketing emphasizing the promotional aspects of marketing linked to database efforts.
Bickert, (1992).
According to Boulding et al. (2005), CRM represents an evolution beyond the existing idea.
They examined that Customer Relationship Management goes beyond existing ideas as it
includes the integration of all activities across the firm, linking these activities to both firm and
customer value, extending this integration along the value chain and developing the capability of
integrating these activities across the network of firms that collaborate to generate customer
value while creating shareholder value for the firm. In addition, due to the newness to
organizations which have not adopted it before and the technological aspect of the CRM
definition, CRM is viewed as an innovation in this research.
Customer Relationship Management (CRM) is a managerial philosophy that seeks to build long
term relationships with customers. CRM can be defined as “the development and maintenance of
mutually beneficial long-term relationships with strategically significant customers” (Buttle,
2001).
There are certain parameters or yardsticks which can be used to qualify a good customer
relationship management strategy. These parameters are:
 Should be integrated to the business process throughout the enterprise.
 Must be accessible to every personnel involved in a customer’s interaction with the
organization.
 Must measure, analyze and improve process effectiveness.
 Must have coordinated process and strategies.
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 Must have a single and universally shared data pertaining to a customer.
 Must be web-based and possess real-time analytics with closed loop reporting.
 Should anticipate the customer’s needs accurately enough to be in the right place, at the
right time, with the right product for them.
Barnes (2002) points out that CRM consists of three components which are:
 The customer.
 Relationship (between Company and Customer).
 Management.
FIG. 2.1 COMPONENTS OF CRM
CUSTOMER
CRM
RELATIONSHIP MANAGEMENT
Source: Barnes (2002).
The customer relationship management process is a continuum that does not just end when a
customer is won. Rather it should continue throughout the time that the customer will last in the
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organization. So with this in mind, Barnes (2002), once more gives a little explanation on what
the components of customer relationship management is;
Customer: The customer is the only source of the company’s present profit and future growth.
However, a good customer, who provides more profit with less resource, is always scarce
because customers are knowledgeable and the competition for them is fierce.Sometimes it is
difficult to distinguish who the real customer is because the buying decision is frequently a
collaborative activity among participants of the decision making process. (Wyner 1999).
Information technologies can provide the abilities to distinguish and manage customers; CRM is
more of a marketing approach that is based on customer information.
Relationship: The relationship between a company and its customers involves a continuous bi-
directional communication and interaction. The relationship can be short-term or long-term,
continuous or discrete, and repeating or one-time. Relationship can be attitudinal or behavioral.
Even though customers have a positive attitude toward the company and its products, their
buying behavior is highly situational. For example, the buying pattern of airline tickets depends
on whether the person buys it for family vacation or corporate business trip. CRM involves
managing relationships that exist among customers and business owners, so that it will be
profitable and mutually beneficial to both parties. Customer lifetime value (CLV) is a tool for
measuring such a relationship.
Management: Customer Relationship Management (CRM) is not an activity only within a
marketing department. Rather, it involves continuous corporate change in culture, attitude and
processes. The customer’s detail that is obtained is being transformed into corporate knowledge
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that leads to activities that take advantage of the details and of market opportunities. CRM
requires a comprehensive change in the organization and its people. (Ngai, 2005).
2.1.1. CATEGORIES OF CUSTOMER RELATIONSHIP MANAGEMENT
According to Parvatiyar et al, (2001), they fundamentally examined that the, CRM application
architecture must combine operational (transaction-oriented business process management)
technologies and analytical (data mart-centered business performance management)
technologies. Besides, the enterprise also needs to cater to the interaction needs of its customers
across multiple channels using various collaborative technologies.
A balanced CRM approach requires that all three sides of the equation be implemented to form
the CRM backbone.
CRM can be broadly categorized under three heads:
Operational CRM
Automation of the basic business processes (marketing, sales, service):
Analytical CRM
Support to analyze customer behavior, implements business intelligence like technology:
Collaborative CRM
Ensures the contact with customers (phone, email, fax, web, sms, post, in person):
OPERATIONAL CRM:
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The goal here is to achieve the automation of horizontally integrated business processes
including customer touch points, point of sales, Enterprise Resource Planning (ERP), and the
legacy systems integration. (While ERP forms the back office automation, CRM covers the front
office. Typical applications include sales force automation, call center automation, channel
automation, enterprise marketing automation and proposal generation. Operational CRM is
covered by customer-facing applications that integrate the front, back, and mobile offices,
including sales force automation, enterprise marketing automation, and customer service support.
Operational CRM is capable of integrating with financial and HR suites of ERP, thus making it
possible to have end-to-end functionality from lead management to order tracking.)
ANALYTICAL CRM:
Analytical CRM is the use of customer data for analysis, modeling and evaluation to create a
mutually beneficial relationship between the company and the customer.CRM analytics
comprises all programming that analyzes data about an enterprise’s customers and presents it so
that better and quicker business decisions can be made. Almost every organization has collected
and stored a wealth of data about their customers, suppliers, and business partner, (Parvatiyar et
al, 2001).
The differentiating factor of a successful progressive enterprise is its ability to discover valuable
information hidden in this data and transform this data into knowledge.This involves capturing,
storing, extracting, processing, analysis and interpretation of customer data to the corporate user.
The purpose of these tools is to draw inferences regarding customer preferences, attitudes,
behavior etcetera. They allow corporate customer managers to differentiate and segment
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customers to gain competitive advantage. It involves the use of a customer intelligence
management technique.
FIG 2.2 CUSTOMER INTELLIGENCE MANAGEMENT CYCLE
COLLECT ANALYZE
(DATA MANAGEMNENT ANALYTICAL
INFRASTRUCTURE) INFRASTRUCTURE
CUSTOMER INTELLIGENCE MANAGEMENT CYCLE
MEASURE ACT COMMUNICATION

(METRICS MANAGEMENT
INFRASTRUCTURE) INFRASTRUCTURE
Source: Customer intelligent management at a glance. Romano et al. (2002)
In the above diagram, the first step in the customer intelligence management cycle is
to collect data. This includes the information required about the customer to extend CRM
solutions across contact channels or product lines within the enterprise.
The second step is to measure i.e. measurement of the benefit of the customer to the
organization; this will help the manager of the organization to determine the level of benefit or
treatment that goes to each of its different customers.
The third step is to act; this means acting within the enterprise i.e. assigning the various units
and departments with the responsibilities and tasks required for evaluating or analyzing such
customer data collected.
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The fourth and last step is to analyze i.e. using the various metrics and available criteria to
evaluate the customer data before deciding how to treat such customer.
ANALYSIS OF CUSTOMER DATA
Processes managed by an analytical CRM environment include data acquisition,
cleansing/integration, loading/unloading, aggregation and distribution. Analysis of customer data
essentially takes two forms – predictive and retrospective. One form enables companies to
predict or forecast future behaviors or values of customers while the other provides a
multidimensional view of customer activity.
 Predictive analysis uses historical customer data to uncover customer patterns, behavior
and relationships. The use of data mining and predictive analysis enable a company to
focus on high-value customers.
 Retrospective analysis provides capabilities such as online analytical processing
(OLAP), query and reporting. When companies need to understand existing customer
data by transaction, location, product and time, retrospective analysis is a good solution.
COLLABORATIVE CRM
Collaborative CRM refers to the strategies and technologies that enable multi-enterprise business
process integration and content management, with the goal of creating, growing, andretaining
profitable networks of customer and partner relationships. It focuses on giving visibility into
enterprise sales, service, marketing, and product development to support customers better.
This is the application of collaborative services to facilitate interactions between the customer
and the organization. Examples are portals, partner relationship management (PRM) application,
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e-communities or customer interaction center (CIC). Collaborative CRM facilitates interactions
with customers through all channels (personal, letter, fax, phone, web, e-mail) and supports co-
ordination of employee teams and channels. Collaborative CRM is used to establish the lifetime
value of customers beyond the transaction by creating a partnering relationship.
Collaborative CRM enables an organization’s internal customer facing and support staff, mobile
sales people, partners and customers themselves to access, distribute and share customer data/
activities (Copulsky and Wolf, 1990). The above types of customer relationship management
have their constituents or what they are made up. A CCE fosters a people-centric collaboration
which permits any user to access any relevant data on any system, internal or external, as long as
that access will enhance that user’s job performance or function (Myers, 2002).
Collaborative CRM is also an approach in which the various departments of a company, such as
sales, technical and support, and marketing, share any information they collect from interactions
with customers. For example, customer feedback gathered from technical support section could
inform marketing staff about products and services that might be of interest to the customers.
The purpose of collaboration is to improve the quality of customer service, and as a result
increase customer satisfaction and loyalty.
2.1.2 PERSPECTIVES OF CUSTOMER RELATIONSHIP MANAGEMENT
According to Janice (2003), customer relationship management can be viewed conventionally
from the following perspectives;
CRM from the Information Technology Perspective.
From the technology perspective, companies often buy into software and that will help to
achieve their business goals. For many, CRM is far more than a new software package, the
28
renaming of traditional customer services, or an IT-based customer management system to
support sales people. However, IT is vital since it underpins CRM, and has the payoffs
associated with modern technology, such as speed, ease of use, power and memory, and so on.
CRM from the Customer Life Cycle (CLC) Perspective.
The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle. However,
CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looking at
the products or services that customers need throughout their lives. It is marketing orientated
rather than product orientated. Essentially, Customer Life Cycle is a summary of the key stages
in a customer's relationship with an organization.
CRM from the Business Strategy Perspective.
The Business Strategy perspective has most in common with many of the concepts and topics
contained in customer transaction with the organization. It contains three key phases - customer
acquisition, customer retention and customer extension, and three contextual factors - marketing
orientation, value creation and innovative IT.
2.1.3 PURPOSES OF CUSTOMER RELATIONSHIP MANAGEMENT.
CRM, in its broadest sense, means managing all interactions and business with customers. This
includes, but is not limited to, improving customer service and response. A good CRM program
will allow a business to acquire customers, service the customer, increase the value of the
customer to the company, retain good customers, and determine which customers can be retained
or given a higher level of service. Wyner (1999), explained that a good CRM program can
improve customer service by facilitating communication in several ways:
29
 Provide product information, product use information, and technical assistance on web
sites that are accessible 24 hours a day, 7 days a week.
 Identify how each individual customer defines quality, and then design a service strategy
for each customer based on these individual requirements and expectations.
 Provide a fast mechanism for managing and scheduling follow-up sales calls to assess
post-purchase cognitive dissonance, repurchase probabilities, repurchase times, and
repurchase frequencies.
 Provide a mechanism to track all points of contact between a customer and the company,
and do it in an integrated way so that all sources and types of contact are included, and all
users of the system see the same view of the customer (reduces confusion).
 Help to identify potential problems quickly, before they occur.
 Provide a user-friendly mechanism for registering customer complaints (complaints that
are not registered with the company cannot be resolved, and are a major source of
customer dissatisfaction).
 Provide a fast mechanism for handling problems and complaints (complaints that are
resolved quickly can increase customer satisfaction).
 Provide a fast mechanism for correcting service deficiencies (correct the problem before
other customers experience the same dissatisfaction).
 Use internet cookies to track customer interests and personalize product offerings
accordingly.
 Use the Internet to engage in collaborative customization or real-time customization.
 Provide a swift mechanism for managing and scheduling maintenance, repair, and on-
going support (improve efficiency and effectiveness).
30
 The CRM can be integrated into other cross-functional systems and thereby provide
accounting and production information to customers when they want it.
2.2 DEFINITION OF CUSTOMER RELATIONS SERVICE
Customer relationship management cannot be discussed without making mention of customer
relations service. So attempt will be made to look into what customer relations service is all
about. Customer relations service is before or after sales activity that helps customers attend to
most of their issues and challenges with an organization’s offerings thereby leading to
satisfaction and the maintenance of a high level of relationship with customers. The goal of
customer relations service is to resolve internal and external customer problems quickly and
effectively. By providing fast and accurate answers to customers, a company can save cost and
increase profit and performance towards such customers (Ojo, 2004).
2.2.1 CUSTOMER RELATIONS SERVICE CAPABILITIES
This can be seen as those processes or technicalities that allow or aid an organization to deliver
effective customer care service to their customers. They include but not limited to the following:
Call centre management:
 Provides automated, end-to-end call routing and tracking. For example the
HOTELNigeria customer care centre.
 Captures customer feedback information for performance.
Field service management:
 Allocate, schedule, and dispatch the right people, with the right parts at the right time.
31
 Log materials, expenses, and time associated with service orders.
 View customer history.
 Search for proven solutions.
Help desk management:
 Solve problems by searching existing knowledge base.
 Initiate, modify and track problem reports.
 Provide updates, patches, and new versions.
Customer relations service is vital because customers have more choices today, the targeted
customers are most valuable to the company, and customer relations service must receive a high
priority within the company. In a general sense, any contact or touch point that a customer has
with a firm is a customer relations service encounter and has the potential to gain repeat business
purchase or patronization.
Winer (2001) , highlighted that customer relations service is always of two types which are:
Reactive service: this is where the customer has a problem, (product failure, questions about a
bill, product return etcetera) and contacts the company to solve it. Most companies today have
established infrastructures to deal with reactive service situations through almost 1,000 telephone
numbers, faxback systems, email addresses, and variety of other solutions. This is exactly what
HOTEL Nigeria customer care does.
Proactive service: this is a more difficult approach. This is a situation where the company has
decided not to wait for customers to contact them but rather they become aggressive in
establishing dialogue with customers prior to complaining or other behavior sparking a reactive
32
solution. This is a matter of good accounts management where the sales force or other people
dealing with specific customers are trained to reach out and anticipate customer’s needs.
2.2.2 HOW TO IMPROVE CUSTOMER RELATIONS SERVICE:
Good customer service is an integral part of any business or organization. Any profession that
requires interaction with the public needs to exercise effective customer service skills in order to
gain, retain and satisfy customers. Light, (2001), illustrated that the fundamentals of customer
service are quite easy to implement, but here are some of the basics to be remembered from time
to time.
1. Add people-loving people to your team.
This may sound too simple, but employees who are outgoing and friendly tend to be nice to
customers and empathetic concerning their problems. Intelligence and problem solving skills
are a plus, too.
2. Offer periodic customer service training programs.
These programs often provide role plays of various scenarios which mimic a range of
customer interactions. Ongoing training like this will encourage customer-oriented behaviors
and practices.
3. Give employees the authority to make some difficult decisions without you.
Well defined customer service guidelines will provide a basis for this authority. When
employees make good decisions you can congratulate them and, in turn, encourage further
customer-oriented decision making
33
4. Allow customers to give feedback.
You can issue surveys or randomly call customers to get their opinions. Your customers will
usually be glad to share this information. Be sure to act on any feedback that can show you
how to improve customer service.
5. Catch your customers off guard.
Pleasantly surprise your customers with a bonus, an unexpected bonus product along with a
thank you note. This simple step will give your customers a good experience and encourage
future purchases.
2.2.3 IMPLEMENTING CRM
“A successful CRM strategy cannot be implemented by simply installing and integrating a
software package, a holistic approach is needed” Dowling, (2002). This approach may include
training of employees, a modification of business processes based on customers' needs and an
adoption of relevant IT systems (including software and maybe hardware) and/or usage of IT
services that enable the organization or company to follow its CRM strategy. CRM services can
even be the acquisition of additional hardware or CRM software licenses.
The term itself is meant to describe the whole business strategy (or lack of one) oriented on
customer needs. The main misconception of CRM is that it is only a software, instead of a whole
business strategy. (Dimitriadis, & Stevens, 2008). To be effective, the CRM process needs to be
integrated end-to-end across marketing, sales, and customer service. According to Reinartz et al.
(2004), A good CRM program needs to:
34
1. Identify customer success factor:This means that the organization or customer manager
should try and find out those factors that make customers to repeat their purchases. It could be
quality of product or the value added in terms of satisfaction.
2. Create a customer-based culture:
What this entails is to try to create an organizational structure that is centered on customer
orientation.
3. Adopt customer-based measures:
Strategies and tactics adopted in the organization should be based on customers and not just on
product this time.
4. Develop an end-to-end process to serve customers:
Processes used to serve customers should be clearly specified. It could be the process used to
enter their data into the customer database or process used to sell or promote products to the
customers.
5. Recommend what questions to ask to help a customer solve a problem:
Certain questions need to be formulated in major areas of customer concerns and then these
questions will be used to help a customer in trying to solve his or her problem.
6. Recommend what to tell a customer with a complaint about a purchase:
As regards purchase, certain responses should be formulated so that customers who come with
maybe enquiries or complaints about purchases can be attended to effectively.
35
7. Track all aspects of selling to customers and prospects as well as customer support:
There should be customer support programs in place and also all aspects, tactics and strategies
used to sell to customers has to be recorded so as to refer to them if they are successful
strategies.When setting up a CRM segment for a company, it might first want to see what profile
and aspects it feels are relevant to its business, such as what information it needs to serve its
customers, the customer's past financial history, the effects of the CRM segment and what
information is not useful. Being able to eliminate unwanted information can be a large aspect of
implementing CRM systems.
When designing a CRM structure, a company may want to consider keeping more extensive
information on their primary customers and keeping less extensive details on the low-margin
clients.
2.2.4 ORGANIZATIONAL PERFORMANCE
Organizational performance comprises the actual output or results of an organization as
measured against its intended outputs (or goals and objectives). According to Richard et al.
(2009) organizational performance encompasses three specific areas of firm outcomes:
(a) financial performance (profits, return on assets, return on investment, etc.);
(b) product market performance (sales, market share, e.t.c); and
(c) shareholder return (total shareholder return, economic value added, customer service, e.t.c).
Specialists in many fields are concerned with organizational performance including strategic
planners, operations, finance, legal, and organizational development.
36
In recent years, many organizations have attempted to manage organizational performance using
the balanced scorecard methodology where performance is tracked and measured in multiple
dimensions such as:
Financial performance (e.g. shareholder return);Customer service;Social responsibility (e.g.
corporate citizenship, community outreach);Employee stewardship, and Profit maximization.
REFERENCES
Andersson, J.C., Hakansson, H. and Johansson, J. (2000). “Dynamic business relationships
within a business network context”, Journal of Marketing, Vol. 58, October, pp. 1-15
Antonides,G., Amesz, B.H. and Hulscher, I.C. (1999). “Adoption of Payment Systems in Ten
Countries - A case study of diffusion of innovations”, European Journal of Marketing
Marketing, Vol 33, pp. 1123-1135.
Barnes, J.G. (2002). “The issues of establishing relationships with customers in service compan
ies: When are relationships feasible and what form should they take?”, American
Marketing Association and Vanderbiit University Center for Services Marketing,Vol. 55,
pp 365-378.
Bickert C.G (1992). Promotional aspects of database marketing. Customer relationship manage
ment Johnson publishers New york.
Boulding, W. Staelin, R., Ehret, M. and Johnston, W.J. (2005). “A customer relationship manage
37
ment roadmap: What is known, potential pitfalls and where to go”, Journal of Marketing,
Vol. 69, pp. 155-166.
Buttle. (2001). "The CRM Value Chain," Marketing Business Review, Primetime Publisher's
Texas, pp 52-55.
Claudia, I et al (2001). Building the customer centric enterprise. Penguin publishers London.
Copulsky, J.R and Wolf, M.J (1990, p.17). Development of a Customer Centric Enterprise.
Galaxy publishers England.
Dowling, G. (2002). “Customer Relationship Management: In B2C Markets, often less is more”,
California Management Review, Vol. 44, No. 3, pp. 87-104.
Dimitriadis, S. and Stevens, E. (2008). “Integrated customer relationship management for service
activities”, Managing Service Quality, Vol. 18, No. 5, pp. 496-511.
Greenberg, P. (2001). CRM at the Speed of Light.Hindu publishers New Delhi India.
Gosney, J. and Thomas Boehm (2000). Customer Relationship Management Essentials.
Academic of Business Review, Prima Publishing, pp 65-78.
Gummesson E. (2004). Return on Relationships (ROR): The value of relationship marketing and
CRM in business- to - busines, contexts. Journal of Business. Ind. Marketing, 19(2), pp
136-148.
Janice, F.D (2003). A Practical Guide to CRM. Spotlight group New Jersey, United States
38
Light, B. (2001). A review of issues associated with customer relationship management systems
in Proceedings of the 9th European Conference on Information Systems, pp. 1232-1241.
Myers, M (2002). Issues and developments in Customer management. Dan educational centre
London.
Nevin, J. (1995).Issues in the perspectives of CRM. Journal of Economic and Social Research
3(4) 2001, 2002 Preliminary Issue, 1-21
Newell, F. (2000). Customer Relationship Management in the new Era of Internet Marketing
, New York: McGraw- Hill.
Ngai, U. (2005). Management of Customer’s relationships, issues and solutions. Journal of
marketing 64, 13.
Ojo, A. (2004). Customer relations service in Nigeria. Journal of African related studiesVol. 2
pp, 44-58.
Reinartz, W. M. (2004). " The Customer Relationship Management Process: Its Measurement
and Impact on Performance" . Journal of Marketing Research, 293-305.
Richard, V.A et al. (2009). Measuring Organizational Performance: Towards Methodological
Best Practice. Journal of Management.
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Romano, Nicholas C. (2003), “Electronic Commerce Customer Relationship Management: A
research agenda, “ Information technology and management, 4(2-3), pp 233-258.
Schneider, H. and Bower, U (1995). Improving service Quality in America: Lessons learned. The
Academy of Management Executives, 8, 32-52.
Stone M, Ronald 3. (2004), Accelerating Customer Relationships using CRM and relationships
Technologies. Upper Saddle River, NJ: Prentice Hall.
Winer, R. S. (2001). " A Framework for Customer Relationship Management". California
Management Review ,43, 89-105.
Wyner, G.A. (1999). Customer Relationship Management, Marketing Research, Vol. 11, No. 2,
Summer, pp 39-41.
Zablah, Alex R. , Danny N. Beuenger (2003). " Customer Relationship Management: An
Explication of its Domain and Avenues for Further Inquiry" in Relationship Marketing,
Customer Relationship Management and Marketing Management. American Journal of
Marketing Research, 115-124.
40
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION
This chapter focus on the analysis of the methods and procedures that would be used in carrying
out the research Customer Relationship Management And Patronage In Service Industry (A Study Of
Hotel). It also outlined the methods and sequences by which data for this study is collected, and
to be analyzed to test the hypothesis for this research work. The collection of data for this
research study is done through the use of primary data source. (questionnaire).
3.1 RESEARCH DESIGN
The importance of design in a research study cannot be over emphasized and this is because it is
used to guard against possible chances of failure in a study, this implies that when an enquiry is
41
conducted, it is necessary and important to anticipate each research problem and decide on what
to do, and then one can increase chances of controlling the research procedures. In this sense,
research design is self-regarding and correction is made into the conduct of enquiry leading to an
improvement and perfection of an integral part of every research effort.
3.2 RE-STATEMENT OF RESEARCH QUESTIONS
The research questions that would answered in the course of this research work include:
1. To what extent does customer relationship management enhance a high level of patronage?
2. How does a good customer service affects the level of productivity in an organization.
3. What class of customer or classes of customers should enjoy the benefits of managing good
4. What strategies should organizations take in seeking to achieve a successful and effective
5. Should customer relationship management be included in telecommunications industries?
3.3 RE- STATEMENT OF HYPOTHESIS
Below is the hypothesis that would guide the researcher in making assumptions and analysis.
Hypothesis 1
H0: Customer relationship management has no significant effect on patronage.
H1: Customer relationship management has a significant effect on organizational performance.
Hypothesis 2
42
H0: Good customer relations does not have positive impact on organizational performance.
H1: Good customer relations have positive impact on organizational performance.
3.4 POPULATION OF STUDY
Population is a collection of all conceivable elements, subjects or observations with one or more
attributes in common. It represents a specified segment of the real world with common definite
specified characteristics relating to a particular phenomenon of interest to the researcher. The
population of study was limited to the customers of some selected choice hotels in Anambra
state. A number of 110 questionnaires were distributed to respondents who were selected through
the use of random sampling.
3.5 SAMPLE SIZE AND SAMPLING TECHNIQUE
The population is defined as referring to all items, which come within the scope of research or
investigation whether human or otherwise. While sample is a tool to infer something about a
population by selecting a part from that population, (Adelusi , 2005). The size of the population
was quite enough to achieve its aim and it was drawn from the customers of choice hotel who
are within the study area
A total number of 110 sample was taken from the population to test the validity and reliability of
the stated and formulated hypothesis. The selected respondents cuts across both the staff and
customers..
3.6 DATA COLLECTION INSTRUMENT
43
The data collection to be used within the context of the research questions and hypotheses. The
sources of data collection were the primary sources.
Primary Data: The main source of data to be used is the questionnaire. To facilitate useful
information, self-developed questionnaires will be administered. Questionnaire is one of the
most useful tool for data collection , (Foddy, 1993). The data derived from this source is known
as primary data.
Secondary Data: These are already existing data that can be easily be gotten from various
sources they can be from journals, bulletins, textbooks, newspapers, periodicals. e.t.c.
3.7 FIELD WORK
This explain how the administration of questionnaire is being distributed by the researcher to
his/her respondent and retrieval of the result for further analysis. The questionnaires will be
administered within Redeemer’s University campus.
A total number of One Hundred and ten (110) questionnaires will be distributed to both staff and
students of the above mentioned institution. The distribution of the questionnaire are being
stratified in such a way that it will enable the research work to cover a wide area instead of it
being restricted to a particular point. Therefore, thirty (30) questionnaires will be distributed to
staffs of the compnay in which fifteen (15) will be administered to Academic staff, and the
remaining fifteen (15) will be administered to senior staff.
Also, Eighty (80) questionnaires will be administered among new customers.
3.8 METHOD OF DATA ANALYSIS
44
the statistical method to be used for analysis of the data of this research is the regression analysis
under the statistical package for social sciences (SPSS). Regression analysis is a statistical
technique used to express the relationship between two variables, and estimates the value of the
dependent variable (y) based on a selected value of the independent variable (x) (Fornell and
Cha, 1994). But for the purpose of this research work, it will be used to determine the
relationship between a particular variable and another. The statistical method will be used to find
out the Impact of customer relationship management which is the independent variable, on
patronage, the dependent variable.
Dependent variable: This is the variable that is being predicted or estimated.
Independent variable: This is the variable that provides the basis for estimation. It is the
predictor variable. (Gefen, Straub, and Boudreau, 2000).
Regression equation is an equation that defines the relationship between two variables. It is given
by:
y = a + b(x) +μ
where y = Dependent Variable
x = Independent Variable
b= in (y)/ in (x)
μ = stochastic variable, other factors that are responsible for change but are held constant.
For the purpose of this study, a regression equation was derived. Thus, since Y is the dependent
variable then customer patronage was treated as the dependent variable. Also for the independent
45
variable, customer relationship management was treated as the independent variable since
patronage will always depend on how they manage their customer relationship.
Patronage is the dependent variable which we are going to test against the independent variable
customer relationship management.
REFERENCES
Afolabi G.K and Okezie G.N (2005). Project writing and Supervision:Oke Ado Ibadan. Gold
Field Printers.
Fornell, C. and Cha, J. (1994). “Partial least squares,” in Bagozzi, R.P. (Ed.), Advanced Methods
of Marketing Research, Blackwell, Cambridge, MA, pp. 52-78.
Gefen, D., Straub, D. and Boudreau, M. (2000). “Structural Equation Modeling and Regression:
Guidelines’ for Research Practices”, Communications of the Association for Information
Systems, Vol. 4, No. 7, pp. 1-78
Olawuyi S.A (1998). Essentials of research methodology.Osogbo, Osun State, Nigeria.Grapheal
Printing and Publishing Company.
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CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0 INTRODUCTION
This chapter is concerned with the presentation, analysis and interpretation of data collected
through the administration of questionnaires. A total number of 110 questionnaires were
administered to respondents. The questionnaires were categorized in three (3) sections, in which,
Section A deals with the respondents personal information, Section B contains well structured
questions that centres on the research work (Impact of Customer Relationship Management and
patronage), while Section C consist of two open-ended questions which requires the respondents
to share their views and comments about how they feel about the services.
The simple percentage method was used in presenting all the questions in both sections A and B,
while the Linear Regression Analysis method was used to analyze certain questions in section B
that relates to the hypotheses prepared for the study. The analysis of responses was presented in
tables using Statistical Packages for Social Sciences (SPSS).
4.1 DATA PRESENTATION
47
The table below shows the distribution of the questionnaires administered in terms of the number
completed and returned, those not returned at all, and those returned but not completed by the
respondents.
Table 4.1.1
Questionnaire Respondents Percentage

Completed and Returned 97 88.2%
Not Returned at all 10 9.1%
Returned but not filled 3 2.7%
Total Distributed 110 100%
Source: Field Survey 2012
Table 4.1.1 reveals that 97(88.2%) out of 110 (100%) questionnaires administered were
completed and returned. 3(2.7%) were returned but not completed, while 10 (9.1%) were not
returned at all.
Table 4.1.2: DISTRIBUTION OF RESPONDENTS BY “TITLE”
Title Frequency Percentage %

Mr. 59 60.8
Mrs. 38 39.2
Total 97 100%
Source: Field survey (2012)
The table above indicates that 59 people were under the category “Mr”. This represents 60.8% of
the total respondents. 12 respondents were under the category “Mrs”. This represents a
percentage of about 12.4% of the total sample taken. Lastly, 26 respondents were under the
category “Ms” which represents 28.6% of the total respondents.
Table 4.1.3: Age of Respondents
48
Variable Frequency Percentage %
21 21.6
Below 20 years
47 48.5
21-29 years
11 11.3
30-39 years
12 12.4
40-49 years
6 6.2
50 years and above
97 100
Total
The table above shows that a total number of 21 (21.6%) respondents fell between the age
bracket “below 20 years”, 47 (48.5%) respondents fell within the age bracket of “21-29”. 11
respondents with (11.3%) were within the age bracket of “30-39”. Also, 12 respondents with
(12.4%) fell within the age range of “40-49”. Lastly, 6 respondents with (6.2%) fell within the
age range of “50 years and above”. From the result obtained, it was observed that respondents
within the age range of “21-29” had the highest percentage from the overall percentage.
Table 4.1.4: Gender of Respondents

Male 61 62.9
Female 35 36.1
Total 97 100
This table shows the total number of respondents within “male” and "female” categories. 61
(62.9%), respondents were under the “male” category, while 35 (36.1%), respondents with were
49
under the “female” category. From the result obtained, it was observed that the “male” category
had the highest number of responses with 62.9% than the “female” category.
Table 4.1.5: Marital Status of Respondents
Variable Frequency Percentage
Single 67 69.1
Married 28 28.9
Divorced 1 1
Total 97 100
Source: Field Survey (2012)
This table shows the total number of respondents within, their total frequency number and the
percentage level. 67 respondents with (69.1%) belong to the “Single” category, while 28 (28.9%)
respondents belong to the “Married” category. Lastly, only 1 respondent belong to the
“Divorced” category with (1.0%). From the result obtained, it was observed that majority of
respondents belong to the “Single” variable with (69.1%) from the overall percentage.
Table 4.1.6: Academic Qualification of Respondents
SSCE 29 29.9
OND 9 9.3
B.SC/HND 34 35.1
50
MBA/MSC/PHD 24 24.7
Total 97 100
The table above shows the total number of respondents and their educational level. 29 (29.9%)
respondents were “SSCE” holders, while 9 (9.3%) respondents were “OND” holders. Also, 34
(35.1%) respondents are either “B.SC or HND” holders. Lastly, 24 (24.7%) respondents are
either “MBA/MSC holders” or “PHD” holders. From the result obtained, it was observed that
more respondents with “B.SC/HND” had the highest percentage as compared with other
variables.
Table 4.1.7: Length of Relationship in the hotel
1-2 years 13 13.4
3-4 years 28 28.9
5-6 years 33 34
7 years and above 23 23.7
Total 97 100
The table above shows the total number of respondents and their percentage level. 13 (13.4%)
respondents have been using the Hotel services between the period of “1-2 years”, while 28
(28.9) respondents have been using the Hotel services between the period of “3-4 years”. Also,
33 (34%), respondents have been using the Hotel services between the period of “5-6 years”.
Lastly, 23 (23.7%) respondents have been using the Hotel services between the period of “7
51
years and above”. From the result obtained, it was observed that majority of the respondents
have been using Hotel services for a long period of time ranging between “5-6 years”.
4.2 DATA ANALYSIS AND INTERPRETATION
Section B: Analysis of Questions in Customer Relationship Management.
Table 4.2.1: The way hotels manages its customers through service is vital to you as
as a customer.
Disagree 1 1
Undecided 3 3.1
Agree 31 32
Strongly Agree 62 63.9
Total 97 100
This table shows the total number of respondents and their percentage level, that responded to
the question. A total number of 62 (63.9%) respondents “Strongly Agree” to the questions, while
31 (32.0%) respondents simply “Agreed” with the question. 3 (3.1%) respondents were
“Undecided” about the questions, while, only 1 (1.0%) respondent “Disagree” with the question.
No respondents “Strongly Disagreed” to the question..
From the result obtained, it was observed that majority of HOTEL users are satisfied with the
way the telecommunication company manages its customers through different services it renders
to them.
52
Table 4.2.2: A Good Customer Relationship Service Quality from HOTEL will no doubt
lead to satisfaction.
2 2.1
Disagree
Undecided 1 1
Agree 36 37.1
Total 97 100
The table above shows the total number of respondents and their percentage level that responded
to the question. 58 (59.8%) respondents “Strongly Agreed” to the question, while 36 (37.1%),
respondents “Agreed” to the question. 2 (2.1%) “Disagreed” to the question, while only 1
(1.0%) respondent was “Undecided” in his response to the question above. No respondent
Strongly Disagree to the question above. From the result obtained it was observed that over 50%
of the network users believe that good customer relationship service quality from HOTEL will
always lead to satisfaction.
Table 4.2.3: Customer Loyalty will better be attained by proper Customer Relationship
Management/Service.
Disagree 1 1
Undecided 4 4.1
53
Agree 35 36.1
Total 97 100
to the question. 57 (58.8%) respondents “Strongly Agree” with the fact that customer loyalty will
better be attained by proper customer relationship service, while 34 (35.1%) respondents
“Agree” to the question above. Also, 4 (4.1%) respondents were “Undecided” in their response.
Only 1(1%) respondent “Disagree” to the question above. No respondents “Strongly Disagreed”
to the question above. From the result obtained, it was observed that majority of respondents
combining both the “Agree” and “Strongly Agree” responses with (94.9%) believe that customer
loyalty will better be attained if HOTEL has a proper customer relationship mgt/service.
Table 4.2.4: Improvement in Customer Relationship Management will enhance the

Performance of the organization.
Undecided 2 2.1
Agree 36 37.1

54
Total 97 100
The table shows the total number of respondents and their percentage level, that responded to the
question. 59 (60.8%) respondents “Strongly Agree” with the fact that improvement in customer
relationship management will enhance the performance of the organization, while 36 (37.1%),
respondents “Agree” to the question. Also, only 2 (2.1%) respondents were “Undecided” in their
response to the question. From the result obtained, it was observed that 97.9% users of the
network agree to the fact that increase in CRM will positively enhance the performance of the
organization. So therefore, it is important that organizations must constantly ensure that they put
more consideration to their customer service relationship
Table 4.2.5: Responding swiftly to customers needs is the priority of customer
Relationship management/service.
Disagree 1 1
Undecided 1 1
Agree 35 36.1
Total 97 100
The table above shows the total number of people with their percentage level that responded to
the question. 60 (61.9%) respondents “Strongly Agree” with the fact that responding swiftly to
customers’ needs is the priority of customer relationship management, while 35 (36.1%)
55
respondents “Agree” to the question . 1 (1%) respondent was “Undecided” in his response to the
question. Lastly, only 1 (1%), respondent “Disagree” to the question.
From this result obtained, it was observed that (98%) comprising of both “Strongly Agree” and
“Agree” users of the network are in agreement to this question, it is important to state here that
one of the key essence of putting in place a customer relations service unit in an organization is
to always responds to the needs and demands of the customers, because they play a vital role in
the activities of business.
Table 4.2.6: A Satisfied Customer stays longer and this will most likely increase the
Performance of the organization.
Strongly Disagree 1 1
Undecided 5 5.2
Agree 33 34
Total 97 100
to the question. 58 (59.8%) respondents “Strongly Agree” with the fact that a satisfied customer
stays longer and this will most likely increase the performance of the organization, while 33
(34.0%) respondents “Agree” to the question. Also, 5 (5.2%), respondents were “Undecided” in
their response to the question. 1 (1.0%) respondents “Strongly Disagree” to the question. No
respondents “Disagree” to the question stated.
56
From the result obtained, it is observed that in every organization customer’s satisfaction is very
important If a customer enjoys more benefit from a particular product/service, there is every
possibility that he/she will keep on patronizing the organization products and will have no need
of going elsewhere.
Table 4.2.7: CRM must keep customers updated with products and services in order
to create satisfaction and increase performance.
Strongly Disagree 2 2.1
Undecided 3 3.1
Agree 40 41.2
Total 97 100
to the question. 52 (53.6%) respondents “Strongly Agree” to the question, while 40 (41.2%)
“Agree” to the question stated above. 3 (3.1%), respondents were “Undecided” in their response
to the question. Lastly, only 2 (2.1%) “Strongly Disagree” to the question above.
Table 4.2.8: CRM/service at HOTEL is at its best in terms of quality service rendered
57
Disagree 27 27.8
Undecided 30 30.9
Agree 22 22.7
Total 97 100
This table above shows the total number of respondents and their percentage level that responded
to the question. 30 (30.9%) respondents were “Undecided” to the question , while 27 (27.8%)
“Disagree” to the question. Also, 22 (22.7%) respondents “Agree” to the question stated above.
Lastly, only 13 (13.4%) respondents “Strongly Agree” in their response to the question stated
above.From the result obtained, it was observed that for HOTEL to be at its best it must
constantly meet the needs and demands of customers by reducing their charges.
Table 4.2.9: CRM has good impact on the Performance of an Organization.
Disagree 5 5.2
Undecided 19 19.6
Agree 44 45.4
Total 97 100
58
to the question. 44 (45.4%) respondents “Agree” in their response to the question stated above,
while 29 (29.9%), respondents “Strongly Agree” to the question stated above. Also, 19 (19.6%)
respondents were “Undecided” in their response to the question stated above, and 5 respondents
“Disagree” to the question. No respondent “Strongly Disagree” to the question. This result
indicates that good customer relationship service at HOTEL has good impact on the
organization’s performance because they create a 24/hrs call centre that attends to the needs of
customer’s everyday.
Table 4.2.10: CRM will enhance good Customer Value of an Organization’s Product.
Disagree 1 1
Undecided 4 4.1
Agree 50 51.5
Total 97 100
to the question. 50 (51.5%) respondents “Agree” with the fact that CRM will enhance good
customer value of an organization’s product, while 42 (43.3%) respondents “Strongly Agree” to
the question. 4 (4.1%) respondents were “Undecided” to the question above, and lastly only 1
(1.0%) respondent “Disagree” in his/her response to the question stated above. The implication
therefore is that it is necessary for every organization to have a good customer relationship
service put in place which will enhance good customer value for all organization.
59
Table 4.2.11: Poor CRM will most likely result to a low patronage of an Organization’s
Product.
Disagree 4 4.1
Undecided 9 9.3
Agree 35 36.1
Total 97 100
to the question. 47 (48.5%) respondents “Strongly Agree” with the fact that poor Customer
Relationship Management will most likely result to a low patronage of an (9.3%) respondents
were “Undecided” to the question stated above, 4 (4.1%) respondents “Disagree” to the question
above. Lastly, only 2 (2.1%) respondents “Strongly Disagree” to the question above. This result
explains that if there is poor customer relationship management in any organization, there is
every tendency that customers will not patronize the product/service the organization sells which
will also reduce their profit margin.
Table 4.2.12: Good Customer Relationship Management/Service from HOTEL NG could
attract customer’s to their network.
Disagree 1 1
60
Undecided 3 3.1
Agree 36 37.1
Total 97 100
to the question. 57 (58.8%) respondents “Strongly Agree” with the fact that good customer
relationship mgt/service from HOTEL NG could attract customer’s to their network, while 36
(37.1%) respondents “Agree” to the question. 3 (3.1%) respondents were “Undecided” to the
question. Lastly, only 1 (1.0%) respondent “Disagree” to the question. It is important that
HOTEL should improve more on their customer service relationship because every customers
likes to be treated with care, so then they must take customers need as top priority and also
implement a feedback policy where customer requests are being conveyed back to them on time.
Table 4.2.13: For HOTEL to maintain its current standard in good service delivery, it
must constantly embark on welfare packages that will benefit its customer
Strongly Disagree 1 1
Disagree 1 1
Undecided 3 3.1
Agree 45 46.4
61
Total 97 100
to the question. 47 (48.5%) respondents “Strongly Agree” with the fact that for HOTEL to
maintain its current standard in good service delivery, it must constantly embark on welfare
packages that will benefit its customers, while 45 (46.4%) respondents “Agree” to the question. 3
(3.1%) respondents were “Undecided” to the question. 1 (1.0%) respondent “Disagree” to the
question. Lastly, only 1 (1.0%) respondent “Strongly Disagree” with the question. From the
result derived, it was observed from the result that for HOTEL to constantly maintain its superior
standards, they must ensure that more welfare packages are introduced which will benefit the
customers.
Table 4.2.14: There is an excellent performance of Customer Relationship Management
or Service at HOTEL NG?
Disagree 21 21.6
Undecided 37 38.1
Agree 23 23.7
Total 97 100
62
to the question. 37 (38.1%), respondents were “Undecided” to the question stated, while 23
(23.7%), respondents “Agree” to the question. Also, 21 (21.6%), respondents “Disagree” to the
question. 11 (11.3%), respondents “Strongly Agree” to the question.
It was observed that HOTEL needs to consciously invest more resources (e.g human and
financial) to be on top of their game and also to beat their competitors. They also need to educate
their customer representatives or agents on how to treat customers politely and ensure that their
complaints are quickly addressed before it gets out of hand.
Table 4.2.15: How would you rate the services that HOTEL may offer to its customers?
Excellent 9 9.3
Good 43 44.3
Average 34 35.1
Poor 10 10.3
Undecided 1 1
Total 97 100
to the question. 43 (44.3%), respondents were of the opinion that HOTEL services is “Good”,
while 34 (35.1%), respondents believe that HOTEL services is “Average”. Also, 10 (10.3%),
respondents were of the opinion that HOTEL services is “Poor”. Only 1 (1.0%), respondents was
“ Undecided” in his/her response about the service HOTEL offer.
63
From the findings it was observed that the rate at which HOTEL offer its services is quite good
and can be improved upon because for them to be considered the leading telecommunication
network in the country, they should improve more on their service delivery to enhance customer
satisfaction.
4.3 TEST OF HYPOTHESIS
Here, the data collected from the questionnaires distributed were analyzed. Selected questions
that relates to the hypotheses in Section B were been analyzed in order to validate the already
stated hypothesis. The Linear Regression method was used in testing the validity of Customer
Relationship Management and patronage
The first hypothesis to be tested in the research is given below:
H0: Customer relationship management has no significant effect on patronage
H1: Customer relationship management has significant effect on patronage
Using the SPSS Statistical tool, we obtained the following results:
Model Summary
Adjusted Std. Error of

Model R R Square R Square the Estimate
1 .301a .574 .081 .51319
a. Predictors: (Constant), CRM has good impact on the
performance of MTN NG
Source: SPSS Analysis 2012
64
ANOVAb
Sum of
Model Squares df Mean Square F Sig.
1 Regression 2.485 1 2.485 9.437 .003a
Residual 25.020 95 .263
Total 27.505 96
a. Predictors: (Constant), CRM has good impact on the performance of MTN NG
b. Dependent Variable: Increase in CRM/service will enhance its performance of the
organization
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 3.823 .254 15.031 .000
CRM has good impact
on the performance of .191 .062 .301 3.072 .003
MTN NG
a. Dependent Variable: Increase in CRM/service will enhance its performance of the organization
From the above table, R= represents the correlation coefficients. This shows correlation between
the variables (dependent and independent); R is a measurement of strength in determining the
linear relationship between the two variables. It is the degree of relationship existing between
two or more variables.
R2= represents coefficient of determination. It shows the percentage of the total variation of the
dependent variable (Y) that can be explained by the change in the independent variable (X). It is
a measure of fitness of the model, and it shows the degree of impact which Customer
relationship management
65
R2= 0.574 =57.4% which is average. But this explains the total percentage Customer
Relationship Management has on patronage. By implication, it has a positive impact on
patronage. R2=57.4% means therefore that 57.4% change in HOTELOP is caused by changes in
HOTELCRM. This is the part that Customer Relationship Management played in organizational
performance which yields a positive result
β= 0.301. This is the average change in the dependent variable per unit change in the
independent variable. This value explains how much increase in Customer Relationship
Management can impact on organizational performance of HOTEL
The ANOVA table shows that F =9.437 which is the calculated value. This indicates that the
combination of the predictor variable (CRM has good impact on the performance of an
organization), significantly predicts the dependent variable (Increase in CRM will enhance its
performance of the organization).
Decision rule
Based on the above results, when p value (< 0.05) you reject H 0 which is the null hypothesis and
the accept H1 the alternate hypothesis. Therefore the result was significant at 0.03 level of
significance which implies that the alternate hypothesis (H1) is accepted. This indicates that
Customer Relationship Management has significant effect on organizational performance.
The second hypothesis to be tested in the research is given below
Hypothesis 2
66
H0: Good customer relations/service does not have positive impact on organizational performance.
H1: Good customer relations/servicehave positive impact on organizational performance.
Using the SPSS Statistical tool, we obtained the following results:
Model Summary
Adjusted Std. Error of

Model R R Square R Square the Estimate
1 .287a .624 .073 .80859
a. Predictors: (Constant), A good customer relationship
service quality from MTN will no doubt lead to
satisfaction
Source: SPSS Analysis Output (2012)
ANOVAb
Sum of
Model Squares df Mean Square F Sig.
1 Regression 5.531 1 5.531 8.460 .005a
Residual 61.458 94 .654
Total 66.990 95
a. Predictors: (Constant), A good customer relationship service quality from MTN will
no doubt lead to satisfaction
b. Dependent Variable: CRM has good impact on the performance of MTN NG
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.268 .605 3.749 .000
A good customer
relationship service
.383 .132 .287 2.909 .004
quality from MTN will no
doubt lead to satisfaction
a. Dependent Variable: CRM has good impact on the performance of MTN NG
67
From the above table, R= represents the correlation coefficients. This shows correlation between
the variables (dependent and independent); R is a measurement of strength in determining the
linear relationship between the two variables. It is the degree of relationship existing between
two or more variables.
R2= represents coefficient of determination. It shows the percentage of the total variation of the
dependent variable (Y) that can be explained by the change in the independent variable (X). It is
a measure of fitness of the model, and it shows the degree of impact which Customer
Relationship Management( HOTELCRM) has on organizational performance (HOTELOP.)
R2= 62.4. =62.4% which is above average. But this explains the total percentage Customer
Relationship Management on patronage, by implication it has a positive impact on
Organizational performance .R2=62.4% means therefore that 62.4% change in HOTELOP is
caused by changes in HOTELCRM. This is the part that Customer Relationship Management
played in organizational performance which yields a positive result at HOTEL β= 0.287. This is
the average change in the dependent variable per unit change in the independent variable. This
value explains how much increase in Customer Relationship Management
The ANOVA table shows that F =2.501 which is the calculated value. This indicates that the
Combination of the predictor variable (CRM has good impact on the performance of an
organization), significantly predicts the dependent variable (A good customer relationship
service quality from HOTEL will no doubt lead to customer satisfaction ).
Decision Rule
68
Based on the above results, when p value (< 0.05) you reject H 0 which is the null hypothesis and
the accept H1 the alternate hypothesis. Therefore the result was significant at 0.04 level of
significance which implies that the alternate hypothesis (H1) is accepted. This indicates that Good
customer relations/service have positive impact on organizational performance.
4.3.3 ANALYSIS OF THE OPEN-ENDED QUESTION IN SECTION C
The two questions stated in the questionnaire are as follows:
Question 1. What do you think are the major lapses in service delivery by HOTEL.
Question 2.As a customer of HOTEL, suggest ways in which you think the company can
improve on service delivery to its numerous customers.
It is important to say that not all respondents had to fill the open-ended questions but most of
them that filled had similar response to the first question that deals with major lapses in service
delivery by HOTEL. Some of the lapses are stated as follows:
 Congestion in network due to large customer’s coverage
 Low bandwidth to supply all customer’s
 High tariff rates to call customer’s compared to other networks.
 Time factor- it takes much time to get through to their customer service agents
 Not giving of bonus incentives to their customers.
 Fluctuation in network in some major areas.
 Exploitative duplication/multiplication of products and services
 Poor delivery in services such as Internet services in major cities.
69
The above listed lapses are the major challenges customers on the Hotel services feels the
organization is facing and so suggested solutions were been provided to solve the challenges
faced by HOTEL. Below are the suggested solution which were recommended by respondents:
 Reduction in high tariff rates and offer bonus packages to customers.
 Improve on their network facilities to enable customers have a better feel of their
services.
 Strengthen infrastructure before increasing numbers of subscribers.
 Expand their wide area coverage especially in most rural parts of the country.
 There should be increase in the value-added services offered by HOTEL.
 Prompt response to customers’ needs should be improved upon HOTEL customer service
agents.
 Services rendered by HOTEL should be affordable and competitive with substitute
products.
70
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 INTRODUCTION
This chapter explains the outcome of this study with respect to the Impact of Customer
Relationship Management and patronage using HOTEL as its case study. Definitions of
operational terms were given alongside the justification for carrying out this research. In
addition, opinions of different scholars and authors on customer relationship management were
used to gather adequate information on the research.
5.1 SUMMARY OF FINDINGS
Chapter one being the background of study, gave an insight into the research topic through the
use of literatures of a historic nature that had previously addressed the problem. There was also
the statement of problem which explained the challenges faced by both organizations and
customer, this led to the emergence of customer relationship management or otherwise
relationship marketing being adopted by many organizations to build lasting network of
relationships with customers. It also featured the objectives of research, research questions,
research hypotheses, justification of study, scope of study, limitations of study, and lastly,
definition of operational terms to aid proper understanding of some of the technical terms used in
this study.
Chapter two, understudied various review of scholarly literatures by authors, an in-depth study
into the evolution of customer relationship management, its past, present, and future
71
organizational performance was examined. Also, it gave insights into several perspective of
ofCRM, implementation of a CRM based system in an organization.
Chapter three was concerned with research methodology adopted, highlighting the nature of the
research method used, the research design, data collection instrument which was primary data
(questionnaire), sample size technique, and method of data analysis.
Chapter four dealt with the data presented, analysis and interpretation of results, using tables that
showed the various frequencies and percentages from data collected from the fieldwork exercise
conducted. A total number of 110 respondents was the sample size for the questionnaire. The
regression analysis method was used to test the hypotheses and its interpretation was also stated.
In the course of this study, the researcher made the following findings from the responses gotten
from users of the Hotel services:
I. A satisfied customer will talk favorably about the company and its services to others
thereby creating good impression of the company (goodwill).
II. Increase in customer relationship management/service will enhance better
performance of the organization.
III. Customer relationship management has good impact on the performance of an
organization (HOTEL).
IV. Customer relationship management will enhance good value of an organization’s
products.
V. It is important to state that Good customer relationship management/service by
HOTEL could attract more customers to the network.
72
VI. Customer loyalty will better be attained by proper customer relationship
management/service.
VII. Customer relationship management must keep customers updated with products and
services in order to create satisfaction and increase performance.
VIII. Poor customer relationship management/service will most likely result to a low
patronage of an organization products.
From the regression analysis result derived for the two hypotheses , the R 2= which is the
correlation of determination was between 24.5% and 29.5%, this indicates the percentage
customer relationship management contributes to organizational performance in HOTEL NG.
Certain other observations made during the research work are listed as follows:
 That the cost of advertisement for acquiring new customers contributed to expenses of
the organization.
 It was more expensive to source for new customers, as it included the cost of promotion,
cost of teaching customers on how to use certain products or services.
 Maintaining relationship with existing customers could lead to increase in customer
transaction which will in turn help to increase the performance of the organization.
5.2 CONCLUSION
The area of customer relationship management is a very vital issue and a necessity for
organizations that desire to remain or become more profitable, it means that a company should
spend a reasonable amount of its budget on customer management strategies and strengthening
73
relationships, because the longer a customer becomes loyal and remainedto a network like
HOTEL, the more profitable the organization becomes and then from this simple analogy we can
then see that overall performance will definitely increase, holding other performance indicators
at a constant.
The benefit of customer relationship management is that it reduces organizational cost in form of
(advertisement and promotions) as a result of records of transaction history of the customer,
which has been kept in the organization’s database. It should be noted that much emphasis
should be placed on treating customers like king, because customers today are exposed to so
much choices, such that customers who are not satisfied are more likely to switch to other hotels.
Therefore servicing industries must put in place CRM models and strategies for retaining their
customers and subsequently making them loyal. Such may cover the following areas:
 remembering customer’s in-between calls,
 sending birthday messages,
 providing seasonal promotion and rewards such as for Easter and Christmas seasons,
 building a trusting relationship that would last, and giving values that surpass their
expectations.
Quality services must be rendered and these services must offer ease, convenience and
security to enable customers feel a certain level of satisfaction. Customer relationship
management is not a department as such, therefore all employees must be customer oriented,
not only the customer relationship service unit/section. Finally, the information channels to
customers must be a two- way flow. Hence, customers should be allowed to give feedbacks
74
on how the organization has treated them. This can be done through, monthly, quarterly or
yearly customer survey report.
5.3 RECOMMENDATIONS
The recommendation for companies is to carryout research that will enhance the current and the
expected level of performance, there are lots of customers looking for services above price, the
focus should be customer value for money, and how to satisfy them, it is necessary that the
company’s employee must be customer oriented; also advertisement is necessary to win back
lost customers. Other variables that is responsible for increase in performance has to be
harnessed such as employee training, corporate planning and strategy, human resources capacity
enhancement, financial performance (e.g. shareholder return), Social responsibility (e.g.
corporate citizenship, community outreach), Employee stewardship, Profit maximization and a
whole lot of others.
The main component behind customer relationship management/service is the implementation of
technology. Computer systems and software can help the customer managers do what they do
best and allow the customer’s information to be integrated into a single database that can be
accessed by other departments. For example the SPSS package can be used to analyze customer
retention, frequency and purchase cycle. This will help the customer manager to have a dataset
on how the customer patronizes the organization. For the case of HOTEL, the customer care is a
very good facility to track customers.
75
76

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TITLE PAGE

Customer Relationship Management And Patronage In Service Industry (A Study Of Hotel)

bless you, Amen. To all my lecturers, xxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxx who have contributed positively to my academic pursuit

years together with such as xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx

xxxxxxxxx; and also to my co-supervisees xxxxxxxxxxxxxxxxxxxxxxx. I just want to say that I

to go about it, I salute you, and am grateful.

1.0 BACKGROUNDOF THE STUDY

management, which is the main focus of study.

earning in the organization.

through to their customer’s customer Kim Jenner, (2008).

customer satisfaction is central to successful application of the marketing concept. Many

customer satisfaction. (Claudia, et al 2001)

consumer behavior and customer relationship management

business relationships both explicit and measurable (Parvatiyar et al 2000).

A mature CRM model will ultimately support both:

· Strategic business research and development efforts,

· Tools and techniques that implement CRM principles.

1.1 STATEMENT OF THE PROBLEM

possible to retain their customers and even attract more.

relationship management on organizational performance.

1.2 RESEARCH QUESTIONS

5. Should customer relationship management be included in telecommunication industry?

customer relationship management and patronage.

 To find out what propels customer patronage;

 To bring out the distinction between customer relationship and organizational

 To show that customer relationship management is a tool for acquiring high

 To determine the role customer service relation plays in every organization

1.4HYPOTHESIS OF THE STUDY

H0: Customer relationship management has no significant effect on organizational performance.

H1: Customer relationship management has a significant effect on organizational performance.

H1: Good customer relations/servicehave positive impact on organizational performance.

with minimum error.

1.7 LIMITATIONS OF STUDY

the challenges being encountered by the researcher.

1.8 DEFINITION OF UNFAMILIAR TERMS

measured against its intended outputs (or goals and objectives).

planners, operations, finance, legal, and organizational development.

higher margins and greater profits.

of target customers and initiate them into taking desirable action.

forms of segmentation are most appropriate.

7. CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

development of appropriate relationships with key customers and customer segments.

8. ELECTRONIC CUSTOMER RELATIONSHIP MANAGEMENT (ECRM)

Electronic customer relationship management (E-CRM) is a comprehensive business and marketing

a certain period of time.

York. All rights reserved.

York: Downing publishers.

Parvatiyar. E, John V(2000). “Customer Relationship Management: Emerging Practice, Process,

2.0 EVOLUTION OF CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management evolved from business processes like relationship

through the effective management of customer relationships.Winer S. (2001). He gave three

developmental stages of customer relationship management, which are:

1. 1980: Database Marketing,

2. 1990: Foundation of Customer Relationship Management

3. Present: The Future of Customer Relationship Management

1980: Database Marketing

except for technology vendors.

customer relationship management was introduced. Unlike previous customer relationship

customer information back in return too.

PRESENT: The Future of Customer Relationship Management

of customer’s needs and behavior. Branching of information, sub-folders, and custom-tailored

 Financial services sector