Effect of Technology Based Customer Relationship Management on Satisfaction of Commercial Banks’ Account Holders in Nairobi City County, Kenya

Abstract

The objective of this study was to establish the effect of technology based Customer Relationship Management (CRM) on satisfaction of commercial banks account holders in Kenya. The study adopted a cross-sectional research design involving descriptive and explanatory research techniques. The target population was 34,649,583 account holders out of which a sample of 400 respondents were selected using mixed sampling techniques. Data was collected using a questionnaire and analyzed using both descriptive and inferential statistics. Simple linear regression was conducted to assess the relationship between technology based CRM and account holder satisfaction. The study established that technology based CRM had a statistically significant effect on satisfaction of commercial banks account holders. The study recommends that commercial banks management should consider technology based CRM dimensions when developing strategies because they have a significant effect on account holder satisfaction with commercial banking services. Commercial banks in Kenya and the central bank can use the findings of this study to formulate technology based CRM policies that enhance service delivery, customer satisfaction and performance. To increase the level of generalization and objectivity, future studies should be carried out in other service industries such as insurance, airlines and medical services using additional variables and a different design such as time series.