Empirical Investigation of the CRM Concept in the Jordanian Context: The Case of Banks and Financial Institutions

Abstract

The purpose of this study is to develop a CRM model and empirically test its underlying constructs in the banking and financial sector in Jordan. The empirical data was collected from a convenient sample of 141 banks and financial institutions, drawn from three major Jordanian cities (Amman, Irbid, and Al-Zarqa). A drop-off method of data collection was used (Aaker et al. 2004). The findings show that Jordanian banks and financial institutions were likely to have a clear CRM strategic vision with specific goals and programs, possess necessary resources to establish CRM, be able to manage CRM programs, and use two way communications to handle CRM. Nevertheless, the analysis unveiled that these firms were not likely to have a sufficient marketing database, nor customer intelligence, with little motivation to either measure effectiveness of CRM programs or take actions to improve an unpopular CRM strategy. Further analysis of the findings indicated that the CRM concept did not seem to be well incorporated in the business strategy of most Jordanian banks and financial institutions. Several recommendations were made and certain directions for future research were highlighted.

Strategic Readiness for CRM Process Management: the Case of Business Service Companies in Bulgaria

“…It consists of the following blocks: CRM vision, CRM base and CRM activities. The CRM model developed by Alsmadi & Alnawas (2001) can be especially useful by the establishment of the interdependence between the individual phases of the CRM process. This model comprises a series of steps which the managers have to undertake for successful realization of CRM projects in their companies.…”

“…The components of the model "CRM diamond" of Mack, Mayo & Khare (2005), being dynamized by following the logic of the CRM model, developed by Alsmadi & Alnawas (2001) CRM, are used as a starting point in this study. The combining of the said models is imperative given the holistic nature of the CRM concept.…”

“…al. 2000), better market performance and sustaining desired competitive position (Alsmadi & Alnawas 2001), improvement of the financial results (Lamparello 2000), reduction of the mistakes made in customer service and increasing of the efficiency of the marketing campaigns (Gudkova 2005) etc.…”

Electronic Customer Relationship Management (e-CRM) in Jordan

“…These drivers include: targeting customers who interact with bank services using a consistent interface, prospecting best customers, attracting customers to be loyal and retaining them as long as possible. On the other hand, a study of 141 banks in Jordan is conducted by Alsmadi and Alnawas (2011) revealed that even though Jordanian banks were likely to have a clear strategic vision of CRM with specific goals and programs, they were not likely to have a sufficient marketing database, technology or customer intelligence to improve their CRM programs and strategies and thus take corrective actions. Furthermore, it was found at the end of 2007 that only 16 Jordanian banks provided functional Internet banking services (Abu-Shanab & Pearson, 2009).…”