Introduction
Background to The Problem
Currently, there is a strong trend of globalization and world economic integration accompanied by rapid advancements in scientific and technical progress across all fields (Nam and Barnett, 2011) Ocampo nd n (2003) have further supported this notion by highlighting that technological innovations have resulted in unprecedented improvements in productivity, economic growth and international trade The liberalization of trade, financial flows and investment in developing countries, combined with the speed of liberalization, has emerged as a crucial factor in this phase of globalization These developments have led to the establishment of a new international banking network that facilitates financing of international trade (World Bank Group, 2011) However, while the global expansion and industry consolidation have had positive impacts on banks, it is important to question whether they can effectively deploy technology investments and developments on an industry-wide basis to achieve outstanding performance (Kamath et al., 2003) Moreover, according to Okin and Pfau (1999), a company that optimally leverages its intellectual assets, capabilities and resources will develop the most promising business opportunities
These trends highlight the growing significance of growth opportunities in the financial services industry in emerging Asian markets such as China, India and ASEAN countries (Kumar, 2014) Pham et al (2020) argue that a compelling case of a young and dynamic economy that has achieved significant success over the past
30 years is Vietnam, specifically in the ASEAN-5 economies of Indonesia, Malaysia, Philippines, Singapore and Thailand Le (2019) asserts that Vietnam's banking
11 system plays a leading role in the country's economy, contributing up to 18% to the Gross Domestic Product (GDP) annually (Stewart et al., 2016) Thus, as the banking industry occupies an important place in the economy, the Vietnamese banking industry must be continuously reformed in order to function effectively during the events of history Continuous innovation necessitates that necessitates that each Vietnamese commercial bank must adopt appropriate solutions to develop, enhance competitiveness, master the domestic financial market and expand to the international financial market (Dinh and Kleimeier, 2007) According to Akther and Rahman (2022), integration of digital transformation management systems is imperative to achieve optimal results for modern businesses, including commercial banking.
Statement of The Problem
As a participant in the financial services sector providing analogous products to banks of comparable or greater size, the competition is notably intense This competitive milieu has necessitated that bank management adopt the fundamental theory that customer relationships are a crucial asset within an organization, requiring effective development and management to enhance sales Nonetheless, a salient inquiry that managers frequently pose is how to efficiently manage customer relationships to perpetuate the continual develop of the bank's products and services Customer Relationship Management (CRM) is one of the widely adopted systems for managing customers In recent years, TPBank has achieved significant successes but to meet customers' expectations, it is imperative to implement effective methods in CRM Therefore, building and nurturing strong relationships with customers are a top priority for banks in general, and TPBank in particular
The purpose of the foregoing is to present a summary of TPBank Thao Dien's customer relationship management capabilities, which constitutes the primary case study of this research This serves as the initial step towards identifying the bank's viability, a crucial aspect that this study aims to analyse and address Specifically, the study seeks to examine the efficacy of implementing a CRM capabilities, which aims to enhance customer retention, and sales, as part of TPBank's e-banking solutions Furthermore, the study endeavours to proffer more viable solutions and propose a viable CRM implementation strategy for TPBank in the future The implications of these findings are expected to shed light on the potential of customer relationship management in the broader context of Vietnam's banking industry, with TPBank serving as a particular case in point.
Introduction to Tien Phong Commercial Joint Stock Bank
Tien Phong Commercial Joint Stock Bank was established on May 5, 2008 through leveraging the support of domestic and foreign shareholders such as DOJI Jewellery Group, IFC International Finance Company (a member of the World Bank), FPT Technology Group, SBI Ven Holding Pte Ltd (Singapore), among others Currently, TPBank is expanding its transaction locations across the North, Central, and South regions of Vietnam The expansion includes over 65 branches and transaction offices distributed among 16 provinces and cities throughout the country TPBank's revenue has always grown by double digits year by year, specifically TPBank's revenue in 2022 has reached VND 15,567,189 million As a bank that is constantly at the forefront of digital innovation and continually expanding its product and service ecosystem with solutions that prioritize customer needs, TPBank has recently made
13 strides in accurately positioning and rapidly adapting to trends by launching personalized features that enhance the user experience (Anh, 2022)
TPBank currently serves over 7 million individual customers across the nation, among which 70% are young customers belonging to the Gen Z and Gen Y generations This figure implies potential opportunities for strengthening the relationship between the bank and its customers, provided that such opportunities are appropriately leveraged TPBank has declared its unwavering commitment to being the preferred service partner for its customers by leveraging advanced technologies that enable the provision of cutting-edge electronic services and solutions In the domain of management, TPBank has instituted various contemporary systems, among which is a Customer Relationship Management (CRM) system that substantially enhances its ability to cultivate customer relations, particularly through digitizing paperwork and swiftly processing customer records using Artificial Intelligence (AI) technology TPBank has accomplished notable growth and garnered a high level of customer trustworthiness over the previous years, largely due to the implementation of its advanced CRM system Within a year, the said system has increased customer satisfaction indices by 70%, augmented the conversion rate from potential customers to actual customers by 200%, and raised the successful cross-selling rate by 65%.
Research Objectives
1 To study the current CRM policies and systems at TPBank
2 To analyse the dimensions of the CRM capabilities and its impact on customer retention at TPBank
3 Thereby recommend a strategy to TPBank for successful implementation of CRM capabilities.
Research Question
Are the existing CRM functions are capable of meeting TPBank requirements?.
Scope of Research
The scope of this thesis research is limited to an analysis of the operations of TPBank in relation to both its external and internal environments, with the goal of formulating a CRM development strategy for the organization The study will gather data through both qualitative and quantitative research methods Data collection will involve online surveys completed by a large number of participants, who have ever transacted with TPBank Thao Dien, and interviews with senior management at the bank, and the use of secondary data.
Dissertation Structure
Structure of the dissertation is as follows ( 6 Chapter):
Chapter one serves as an introduction to the study, providing background information and a statement of the research problem Additionally, it introduces the company and outlines the research objectives, research questions, and research scope that guided the research
Chapter two contains a detailed review of the relevant literature, addressing the research objectives by reviewing the literature on CRM policies and practices, dimensions of CRM capabilities
Chapter three presents the research methodology, which examines the techniques used to select the research sample, the data collection, and the methods used in data analysis and presentation
Chapter four analyses the data collected in the research methodology of chapter three, discussing the results obtained from the data to provide supporting results to draw conclusions
Chapter five outlines the conclusions drawn from the findings, with highlights from the previous chapters
Chapter six provides relevant recommendations for stakeholders, including areas for further research The study concludes with implications for managers and directions for future research
Literature Review
Introduction
This chapter centres on the important policies and practices related to the concept of CRM that emerge throughout the adoption and implementation phases of the CRM process The main goal of this chapter is to develop a theory model of CRM capabilities and evaluate its impact on the banking sector The integration of four dimensions - CRM technology, customer orientation, service capability, and CRM organization, which provides organizational strengths to managers, enabling them to make informed decisions that enhance customer relationships However, according to Ferrari and Tran (2021), the literature on a bank's CRM capabilities is diverse and often produces conflicting results As a result, the review aims to establish the coverage of the literature in the banking sector and identify gaps by drawing on existing knowledge.
Theoretical Background of CRM in banking
In the current banking landscape in developing economies, two prominent phenomena form the central points for emerging theories and practices, namely Technology and Relationship Marketing (Singh and Rahul, 2010) The bank's marketing efforts have made strong breakthroughs thanks to the development of technology, especially it affects the entire interface in the digital banking sector (Dootson et al., 2016) Furthe mo e, Onețiu (2020) believes h n essen i l element in today's businesses is digital transformation as it takes advantage of new technologies, innovates management systems, digitizes products and services of customers Contrary to the previous researches, Johri and Kumar (2023) further
17 stated that transferring arguments in a bank can take a lot of time, money, and even loss of customer privacy against online intrusions In addition, the customer base is increasingly diverse and demanding with the increasing complexity of the business environment (Barnet al., 2004) According to Murray et al (2014), Financial institutions in the service industries must always be in a fierce competition with technological changes and developments having one of the biggest impacts on the industry
Regardless of the available argument of all these literatures, most developing countries are still exploiting technology-driven economies of scale to reach and build customer loyalty in banking sector (Dootson et al., 2016; Le et al., 2020; Kaur et al., 2021) Berry et al (2010) believe that creating a competitive advantage by innovating their capabilities to bring new benefits to existing customers, such as facilitating two-way communication with customers through social networks This has been further supported by Smith et al (2011) that customers can directly contact bankers via social media without queuing and following bank opening hours In addition, a large-scale study revealed that today's customers tend to expect freedom, time savings, ease of access and deeper personal relationships with their bank advisors (Pavithra and Geetha, 2021) Therefore, customer experience and interaction with digital banking has a positive relationship with customer retention in the current context
Hoehle et al (2012) observe that earlier research encountered obstacles that may have been constrained, incomplete, and inadequate in pinpointing customer-related concerns He substantiated and validated this assertion by conducting an empirical evaluation of "the real state" of the research Consistent with these theoretical backgrounds, the current research will test comprehensive theoretical developments
18 on CRM applications and its capabilities to develop to create value for customers (customer experience and interaction) in emerging markets.
Conceptualization of Customer Relationship Management (CRM)
In recent years, the topic of CRM has garnered significant attention from scholars across various fields CRM is considered a dynamic topic, and is often seen as key to success for organizations seeking to improve their profitability through maintaining strong relationships with their customers in the current business climate (Coltman et al., 2011; Thakur, 2014) The effective utilization of CRM technologies can greatly enhance an organization's potential in managing a diverse customer base (Payne, 2005)
According to Wang and Feng (2012), CRM is a cross-functional organizational process that emphasizes the maintenance and strengthening of customer relationships In the banking sector, CRM allows modern banks to personalize services, messaging, and approaches for individual customers using customer information (Kotler and Keller, 2015), thereby aiding in a better understanding of customer needs and preferences However, based on various research papers, it is evident that managers often view CRM as a mere technological solution without proper consideration of its true nature, resulting in negative consequences for the organization and indirectly affecting customer satisfaction and retention (Lavender, 2004; Filip, 2013) Despite this, there is little information available on the mediating role of loyalty in CRM and its impact on the organization (Bhat and Darzi, 2016) This study argues that CRM is an organizational capability that enables a company to identify and leverage various customer loyalty-related and interdependent resources
The Purpose of Customer Relationship Management
The primary objective of CRM is to enhance the efficiency of maintaining appropriate customer relationships in a selective manner in order to boost revenue for the organization Recent advancements in information technology have the potential to improve the development of customer relationships, as organizations now have access to an increasing number of databases, data technologies, and CRM applications (Chatterjee, 2019) Such applications can collect substantial amounts of customer data for analysis and interpretation, which can be utilized to yield positive results
Prior to employing CRM applications, organizations must assess their CRM capabilities in order to determine long-term goals for the organization This allows for the effective targeting of the most promising customer opportunities by CRM applications According to Mohamed (2012), the significance of CRM is growing across various industries In hospitals, CRM plays a critical role in facilitating patient requests for follow-up services, while banks rely heavily on CRM as the primary tool for updating customer data, building and maintaining customer relationships, and marketing.
Aspect of CRM Systems
It is imperative to emphasize that CRM is not merely a tool, but a comprehensive system of business objectives that encompasses diverse aspects of the enterprise, such as software, services, support, and strategic goals Therefore, the CRM system employed by an organization should be crafted to support all of these functions to furnish customer insights In a banking context, the CRM system is typically
20 segregated into three fundamental segments, namely Sales, Marketing, and Service (Ngoc et al., 2021)
The CRM system serves as a vital tool for various departments within an organization The sales department utilizes CRM to automate their sales force (SFA), provide customer response support, and manage supply chain operations Similarly, the marketing department benefits from CRM as a lead management tool that enables analysis of customer profitability, facilitates campaign management, and automates marketing endeavours In addition, the customer support services department employs CRM as an administrative aid for support services, hotline assistance, and on-site service management Within the context of a commercial bank, the CRM system is crucial in facilitating customer information exchange and evaluating the importance of customers within the organization Banks today employ CRM as a support tool to aid sales staff in searching, updating, and synchronizing data effectively Thus, the implementation of CRM in banks is deemed highly essential in the contemporary context It is regarded as one of the efficacious strategies for banks to augment their competitive capacity amidst the prevailing trends of globalization and integration.
Customer Relationship Management Implementation
The implementation of CRM can yield a broad range of strategic, tactical, and operational benefits to organizations, including the standardization of new procedures (Vella and Caruana, 2012) Through the adoption of CRM, sales representatives become more closely aligned with management, and sales progress can be continuously monitored by managers To ensure the effective selection of a
21 control mechanism that is suitable for an organization's mission characteristics, it is imperative to highlight the strategic significance of CRM The benefits of implementing CRM vary depending on the nature of the business, its benefits extend beyond improving customer relationships, and also impact the operational, tactical and strategic level of management (Nguyen and Simkin, 2013) Some of the benefits include consistent and personalized customer service, up-to-date information on customers, better management of key account customers, increased profitability through the use of efficient channels However, the implementation of CRM strategies has a high failure rate, with more than half of organizations investing in CRM seeing the end result as a disappointment (Kim and Pan, 2006) The negative consequences associated with CRM implementation can be attributed to several factors, including a narrow perception of CRM as merely a technological solution, insufficient adoption of a customer-centric approach, inadequate recognition of customer value, inadequate top management support Consequently, the successful implementation of CRM is reliant upon the adoption of appropriate strategies encompassing cultural, policy, procedural, and attitudinal aspects in the whole banking system The following outlines a strategic framework that can facilitate the implementation of CRM
1 CRM is a strategic initiative: The concept of CRM encompasses diverse dimensions, leading to variations in implementation depending on the organizational objectives Thus, the implementation process involves the development of an organizational system that will serve as a long-term strategic initiative contributing to a planned sequence of activities aimed at fostering and cultivating customer relationships
2 Cultural change: CRM implementation requires a transformation in organizational culture regarding perceptions and practices The success of CRM hinges on securing the buy-in of all members of the organization and emphasizing the shared responsibility of each employee in the CRM process chain to deliver customer value Thus, organizational culture is a critical aspect that warrants careful consideration, as different cultures may respond differently to change Organizations should contemplate people, processes, and technology when implementing necessary changes (Woodcock et al., 2011).
3 Policy: It is imperative for the bank's policy to ensure that all levels of staff comprehend the bank's policies and vision for CRM, and effectively communicate customer, market, and profitability data to model the bank's CRM process
4 Training: Training at all levels should focus on the CRM philosophy, its applications in banking, newly implemented processes, staff roles in customer service, along with the use of new technology Additionally, behavioural training in reinforcing customer-centered attitudes and behaviours is necessary.
The Drivers of CRM Capability
The previous section's CRM approach reinforces the view that CRM is viewed as a strategic-based capability and it applies the most appropriate theoretical framework to evaluate the impact on organizational performance The concept of CRM capabilities originates from an organization's processes and reflects their skills to attract new and potential customers to build competitive advantage (Morgan et al., 2009) According to Castelao et al (2015), current performance in a dynamic
23 competitive environment will greatly depend on whether the organization is equipped with CRM capabilities
Based on recent trends in the resource-based view (RBV) literatures, the researchers suggest that there are many important models for different dimensions of CRM capabilities Coltman (2007) hypothesized that CRM capabilities will prevail in an organization when there are three factors: technical, human and business capabilities Wang and Feng (2012) have argued that service firm resources such as customer orientation, customer centric management systems, and the right CRM technology setup can boost superior CRM capabilities and achieve competitive advantage According to Ocker and Mudambi (2003), the three basic aspects of CRM capabilities are the intellectual dimension, the social dimension and the technological dimension
Figure 2.1.The three dimensions of CRM (Ocker and Mudambi, 2003)
Sin et al (2005) developed that CRM dimension model that four major behavioural dimensions includes: key customer focus, CRM organization, technology-based CRM and CRM knowledge management
Figure 2.2.The four dimensions of CRM (Sin at al., 2005)
In summary, most of the models mentioned above agree on the importance of 4 main dimensions of CRM: CRM technology, customer orientation, service capability and CRM organization Therefore, consistent with these research backgrounds in this context, this study will use these four dimensions to further improve and enhance the understanding and application of CRM capabilities in banking sector
The advent of the 21st century has witnessed a significant development in two-way service and interaction channels between organizations and customers (Sangle and Awasthi, 2011) This has led to improvements in the quality of channel interactions, collaboration and enhanced customer experience, facilitated by the effective use of customer data and knowledge (Trainor et al., 2014) For an organization to achieve competitive advantage, technology is a crucial resource in the successful implementation of CRM (Lindgreen et al., 2006) Therefore, the capabilities of CRM technology enable organizations to understand and interact with customers in the most effective way to serve their needs
CRM technology capability is a multidimensional structure that includes information technology-based resources for enabling the business and human resources of the organization (Coltman, 2007; Chuang and Lin, 2013) A CRM system is based on technology such as the analysis, storage, and sharing of information about current and potential customers, leading to improvements in products, processes, and marketing activities (Navimipour and Soltani, 2016) Furthermore, Deszczynski (2022) study argues that organizations must have an existing mechanism of CRM technology to develop customer relationships Based on the previous discussions, this study concludes that enhancing technological capabilities can provide a competitive advantage for an organization in the banking context Therefore, it can be hypothesized that:
H1: There is positive relationship between CRM technology and Customer Retention
Organizational culture provides implicit values and beliefs based on accepted behavioral norms, which serve as the foundation for customer orientation (Bentum and Stone, 2005) Research by Deshpande et al (1993) has also suggested that an organization's commitment to putting the customer's interests first is essential for success in the market The role of customer orientation is to establish its influence on CRM results, which in turn leads to increased customer retention (Moreno and Meléndez, 2011)
Customer orientation requires the organization to have a deep understanding of its customers and a high level of commitment to developing strategies that link
26 functional actions with each other (Narver and Slater, 1990) To successfully implement customer-oriented CRM activities, the most critical factor in customer orientation is the service staff They act as representatives in the customer's mind, as they are the first point of contact and can most easily orient and create perceived value for the customer (Pijls et al., 2021) As a result, the attitude of employees in the organization is crucial for the successful implementation of customer-oriented CRM activities, which ultimately leads to the development of long-term customer relationships
Sin et al (2005) have found that customer orientation is a dominant factor in CRM capabilities and directly affects the relationship with customers, which brings differentiated competitiveness for banks Based on the above discussion, it can be concluded that customer orientation is an essential dimension of CRM capabilities, which promises to contribute to an organization's competitive advantage Hence, the following hypothesis has neem formulated:
H2: There is positive relationship between Customer Orientation and Customer Retention
In today's volatile business environment, Spohrer et al (2007) and Chesbrough (2011) assert that the service system is the largest and most important factor in any organization worldwide Creating value for customers by offering favourable conditions to benefit the organization without incurring specific costs and risks is considered a service (Chou et al., 2015) Therefore, service capability plays a crucial role in creating and maintaining competitive advantages for organizations
Service capability is conceptualized as a process of providing products that create added value for customers (Liu and Lyons, 2011) The role of service capabilities is to personalize, maintain, and progressively develop the quality of products/services to meet customer needs (Yang, 2012) Organizations with good service capabilities can better satisfy and retain customers, generating positive word of mouth to attract new potential customers (Janda et al., 2002; Kang and James, 2004) Additionally, it helps to reduce operating costs, increase market shares, and improve financial performance (Duncan and Elliott, 2002) Based on the literature review and arguments discussed above, service capability should be supported by organizational commitment at all levels Service capabilities can also be viewed as an essential dimension of CRM capabilities Thus, it can be hypothesized that:
H3: There is positive relationship between Service Capability and Customer Retention
Through the above arguments by different researchers, there are arguments that CRM capabilities can be achieved by different factors of CRM capabilities In this study, CRM requires effective operational processes to succeed in the banking sector that is not solely dependent on technology, services or customer-oriented behaviours Ultimately, it also depends on the CRM organization factors because all the company's resources need to be integrated for a successful CRM implementation
As organizations align their management structure and processes with market objectives, they will become more successful in meeting their customers, leading to
28 the success of CRM depending on the organization (Reinartz et al., 2004) Furthermore, Moreno and Meléndez (2011) have found that organizational factors in the form of financial or marketing forecasting completely mediate the implementation of other CRM capabilities such as CRM technology, service capability and customer orientation is known as CRM Organization
Organizational structures such as support, incentive, resource allocation, and financial control management that enable building and maintaining customer relationships are known as CRM Organizations (Sin et al., 2005; Bhat and Darzi, 2016) In addition, the role of it supports cross-functional communication and coordination, for example employee training programs tailored to customer needs lead to higher quality of relationships, thereby developing a competitive advantage for the company (Chang, 2007) According to the above discussion, the following hypothesis has ben formulated:
H4: There is positive relationship between CRM Organization and Customer Retention.
The Functionality of CRM in the Banking Industry
On the basis of awareness of the business environment, CRM refers to the various tools, techniques, and strategies that banks employ to manage their interactions with customers effectively These tools encompass a variety of software platforms, data analytics, and customer service protocols that allow banks to gather and analyze customer data, enhance communication and engagement, and customize their products and services to better meet the needs of their clients The data collected from the CRM system is subsequently utilized to create personalized marketing campaigns, develop bespoke product offerings, and optimize customer service
29 protocols Additionally, CRM functionality can enable banks to enhance their sales and marketing efforts by identifying potential leads and tailoring relevant offers to them By leveraging customer data, banks can segment their customer base and devise targeted marketing campaigns that are more likely to resonate with specific customer groups, leading to higher conversion rates and greater levels of customer engagement.
Findings from literature review
CRM is consider as a catalyst enabling enables organizations to monitor their customers and devise more efficient and effective marketing strategies Presently, organizations have integrated CRM practices into their business processes to better comprehend their customers' needs, develop useful products, and enhance sales, cross-selling opportunities, and customers loyalty Through the acquisition of data that identifies customer buying habits, preferences, and information, CRM systems provide businesses with a closer understanding of their customers' wants and needs, enabling them to offer improved customer service solutions As a consequence, customers are more likely to make repeat purchases when they receive quality products and exceptional service and are also more likely to recommend these products and services to others Additionally, CRM provides business owners and department heads with a comprehensive range of data that facilitates targeting of specific consumers with marketing strategies customized to their purchasing patterns and behaviours However, CRM adoption may have some limitations, primarily when implemented with a focus on software without paying attention to process, sales force interaction, organizational structure, and culture within the organization, with technology as the enabler As a result, CRM implementation impacts the entire organization as it necessitates changes in process, technology, and people
Conceptual Framework
The aforementioned passage provided a comprehensive insight into the concept related to CRM, encompassing its origins, development, definition, role, purpose, and various aspects Furthermore, the dimensions of CRM capabilities elucidated the application of CRM in the banking industry, emphasizing its strategic and competitive advantages, particularly with regard to product and service development, cross-selling, and the cultivation of positive customer experiences The dimensions of CRM capabilities will cover a range of CRM capabilities, including CRM technology, customer orientation, service capability, and CRM organization These capabilities will be incorporated into a conceptual model for the purpose of measurement, as demonstrated in Figure 2.3 The size of this conceptual model serves as a powerful metric for evaluating customer retention Ultimately, based on the findings, the study aims to evaluate and recommend suitable CRM strategies to TPBank, which can have a positive influence on customer retention Additionally, the hypotheses have been developed through a review of relevant literature However, although they are pertinent, they are simplistic in nature and obvious Therefore, this study will instead concentrate on examining the factors that are linked to the implementation of Customer Relationship Management
Research Methodology
Introduction
The chapter provides an overview of how research should be conducted In order to demonstrate the feasibility of conducting a study, it should include the research philosophy, research design, and research methods used to select participants It then explores research methods for data collection, techniques used to present and analyse the collected data Finally, it considers other issues such as validity and reliability that are important to the accuracy of the study.
Research Design
In order to get an overview of the structure and direction of investigation within the framework of research methods, the research design is considered as the blueprint for this development Research design is defined as the general plan of how a study is to be conducted to answer the research questions posed in the literature review chapter (Saunders et al., 2019) It includes the methods and procedures used to conduct the research Consistent with the research factors outlined in the above introduction, the Research Onion framework designed by Saunders et al (2019) will be use in this study in order to ensure more valid research results In addition, as a way to relieve the different views on qualitative and quantitative research in previous studies, both qualitative and quantitative approaches will be incorporated into the design of this study The mixed method design in this study is considered suitable for collecting qualitative data from a quantitative method
Consistent with the ways of building research methodology based on theoretical concepts, the Onion framework proposed by Saunders et al (2019) will be used in
33 this study to ensure more valid research results The Onion research provides a detailed description of the key stages that need to be completed in order to form an effective methodology Research methodology starts with outlining the research philosophy, choosing an approach, then formulating the method and strategy, and defining the timing, all of which factor into the research design, and finally, the main techniques and procedures will be data collection and analysis (Figure 3.1)
Figure 3.1 The Research Onion Framework by Saunders et al., (2019)
Research Philosophy
Saunders et al (2019) defines research philosophy as referring to a system of beliefs and assumptions about the development of new knowledge in a research topic Based on the relevant literature in view of Coltman (2007), he used different dimensions of superior CRM capabilities to improve bank performance Additionally, according to Bhat and Darzi (2018), they concluded that the dimensions of CRM capabilities can determine an organization's competitive advantage It is from these
34 two aspects that this study addresses the concept and assumptions about the relationship CRM capabilities have a positive impact on customer relationship and loyalty Therefore, research philosophy will play an important role in underpinning research methods and assumptions
In this study, the study will examine three main philosophical research methods in academic research: positivism, interpretivism, and pragmatism Each method in this research process will have a different impact on the assumptions and approaches to the problem
Positivism is one of the main research philosophies within the framework of operational research According to Gartrell and Gartrell (2002), positivism is the study of the social world using the scientific method It focuses on creating overarching laws about the dynamics of the social universe To make it simple, positivism focuses on data and observations using various tools such as structured questionnaires to obtain reliable data in order to draw conclusions In other words, it is widely used in research design based on the hypothetical deductive approach that derives a hypothesis from an existing theory Positivism applies an explicitly quantitative approach to the investigation of hypotheses, as opposed to interpretivism, which aims to explore in-depth hypotheses from a qualitative perspective (Crossan, 2003)
Saunders et al (2019) states that interpretivism is also one of major types of research philosophy It is based on the assumption that society is shaped by human actions and behaviour The purpose of interpretive research is to understand relationships between variables through qualitative approach Therefore, predictions in interpretive research can be rather weak and require empirical evidence from quantitative approach Interpretivist research is used to deepen a phenomenon by directly experiencing that phenomenon in a realistic situation to interpret the complexity of the research branches The different branches of interpretivism emphasize how to do this in practice, so researchers focus on the life experience of participants about those experiences Interpretive theory holds that knowledge is subjective, influenced by culture, language, time, context, and values In contrast, positivism holds that knowledge is of an absolute nature and is based on laws
Pragmatism asserts that it attempts to reconcile both objectivism and subjectivism based on rigorous and precise facts and values as well as different contextual experiences (Saunders et al., 2019) It does this by testing theories, ideas, hypotheses, and research findings with tools of thought and action, as well as their practical consequences in specific contexts Most pragmatic studies by scientists consider the most important determinant of research design and strategy to be the research problem statement they will attempt to solve based on the research question posed Saunders et al (2019) asserts that positivism and interpretation are mutually exclusive, pragmatism is another philosophy of study that is more flexible in design and method than positivism and interpretivism It shows that there are
36 actually different ways of interpreting and conducting research to investigate, and that the combination of these different ways of investigation may provide a broader understanding of the phenomena being investigated Pragmatism is the most suggested philosophy for mixed methods research in the literature (Biddle and Schafft, 2014)
3.2.4 The stand of philosophical research method:
All research methods have different advantages and disadvantages depending on the research objectives and types of research questions that the researcher can choose and apply to his research The outermost layer is the philosophy of research, which is the philosophy of pragmatic research The decision to adopt a pragmatic research philosophy is based on the rationale that CRM capabilities can be seen as a fact of impact on customer retention built with insights from the results of a social perspective In addition, a pragmatic research philosophy can yield better research results with the opportunity to use a combination of different methods in research This is explained by the fact that it uses both quantitative and qualitative approaches to clarify the objectives in this study.
Research approach
The next layer in research onion is research approaches, there are three main types of research approaches, namely induction, deduction, and abduction However, the inductive approach and the deductive approach are taken as this fits with the pragmatist research philosophy This is due to both inductive and deductive reasoning serve research with specific purposes and then combine to form general
37 conclusions Inductive reasoning aims to develop a theory while deductive reasoning aims to test an existing theory As a result, for this research, deductive reasoning begins with a general hypothesis, which is then tested against data and only if found to be true leads to a specific conclusion Next, inductive reasoning considers a series of specific observations to arrive at a general conclusion (Streefkerk, 2023)
The deductive approach is a type of investigation used in quantitative research approach to explain the statistical relationship between variables within the research scope (Saunders et al., 2019) Deductive reasoning is purely based on quantitative research, which aims to test existing theories using a specific set of data collected from samples The deductive approach plays an important role in developing the relationship between variables with methods based on objectivity in data evaluation of observations (Yu, 2015) For this study, it will provide the necessary observations to form an opinion on the results in order to address the research objectives This is through conducting research with the use of structured questionnaires to build understanding in solving research problems
On the other hand, Saunders et al (2019) state that the inductive method uses qualitative research approach to develop a deeper understanding of the underlying phenomenon Inductive reasoning is called inductive logic by drawing conclusions from the specific to the general The purpose of inductive reasoning is to develop new theories using observation and analysis of phenomena from various angles In
38 contrast to the deductive approach is based on objectivity in the assessment of the observations, the inductive approach would have relied on subjectivity in the evaluation of the observations to support the results of the research (Rafale, 2016) For this study, based on the approach and data analysis of the deductive method, the inductive approach can draw on these results to give different perspectives and thereby explain theories related to the research problem statement This helps these studies to gather information in a clearer and more precise quantity to make accurate analyses and to be able to devise effective strategies.
Research Methodological Choice
The next layer of the research onion is the research choice Recently, there are signs of strong growth in the use of mixed methods research in many academic fields such as the social sciences and business management (Grootel et al., 2010) Also, the pragmatic philosophy is a common view applied in research to combine quantitative methods with qualitative methods (Morgan, 2007; Feilzer, 2010; Johnson et al., 2017) Thus, a mixed method used with the use of qualitative and quantitative research methodology is considered the applied research method to be consistent with this pragmatic research philosophy The mixed methods approach to research offers researchers the opportunity to design a study that can address both subjective experiences and measurable variables This approach allows researchers to investigate the nature of a phenomenon from the participant's perspective, while also examining the relationship between measurable factors (Williams, 2007)
Williams (2007) states that the quantitative research methods are often used to test theories and variables related to problems of a phenomenon by collecting of
39 numerical data and statistically analysing them Researchers can use questionnaire studies to varying degrees to uncover statistical correlations between variables depending to some extent on those characteristics (Leedy and Ormrod, 2014) Quantitative research is consistent with the deductive research approach in this study However, the limitation of this method is that it is difficult to clarify human behaviours because of their subjective factors and depends heavily on statistical data with limited data sources and the survey can take a lot of time Instead, the qualitative research method in the study is described as a comprehensive model in a natural setting that allows the researcher to develop the phenomenon in detail from the interviews The qualitative research method relies on the collection of qualitative data, obtained by the methods such as case study, ethnographic, action research, grounded theory, narrative inquiry (Saunders et al., 2019) The qualitative research has been generally coupled with the inductive approach (Mitchell, 2018).
Research Strategy
Prior to initiating a research strategy, the researcher must establish the purpose, appropriate research type, and required information for making informed strategic decisions (David and David, 2016) After identifying the objectives and necessary information in the preceding sections, a case study approach was chosen for this study This method enables the researcher to conduct an extensive and in-depth investigation of an organization, specifically the banking industry in this case
Saunders et al (2019) explain that a case study strategy is particularly appropriate for research questions that demand a comprehensive comprehension of social or organizational processes, owing to the wealth of context-specific data gathered
Within the present research context, the understanding of organizational processes refers to the current use of CRM by TPBank Meanwhile, the social processes pertain to the way in which banking customers cooperate and interact with one another utilizing the CRM system
The study aimed to investigate objectives using a structured quantitative questionnaire and a qualitative senior management interview with primary research responses Stated differently, the fundamental idea underlying this mix method is to obtain feedback from senior managers through the interview pertaining to the bank's CRM prior to distributing the survey questionnaire, followed by deploying a structured quantitative questionnaire to customers It allows the study to identify the phenomena through both quantitative and qualitative methods without spending much time reaching out to a large number of customers As a result, it ensured that the study had a deeper assessment of the results and stronger findings.
Time Horizon
The time horizon represents the final layer in the research onion, distinguishing between two types of research: cross-sectional and longitudinal research As described by Saunders et al (2019), cross-sectional research is concerned with examining samples or phenomena at a specific point in time, whereas longitudinal research involves the study of samples or phenomena over a defined period, ranging from short to long term In this study, a cross-sectional design was employed, as it was carried out over a period of approximately 20 weeks (equivalent to 5 months), with the activities for each month presented in Figure 3.2
Figure 3.1 Gantt chart of time scale
Techniques and Procedures
The last stage of the research onion pertains to the techniques and procedures employed In this study, a combination of primary and secondary research methods are used The primary research involved the interview and use of a structured questionnaire, which was used to collect data from respondents This questionnaire was the primary research tool used in the study The secondary research, on the other hand, involved reviewing relevant academic literature, related reports, and press articles
The collection and analysis of primary and secondary data are crucial in producing accurate and relevant results aligned with the research objectives Primary and secondary data sources are the main contributors to the data collection process
25-Nov 20-Dec 14-Jan 8-Feb 5-Mar 30-Mar 24-Apr
Write-up the discussion Conduct the secondary research.
Consult and get feedback from supervision.
Primary research involves collecting data directly from sources, as opposed to relying on pre-existing data sources for a given research project (Jones, 2015) Primary data is collected through methods such as surveys, interviews, observations, and questionnaires, with the aim of developing research hypotheses and experimental data (Saunders et al., 2019) In this study, structured questionnaires were used for primary research, with the results utilized for the deductive approach
On the other hand, secondary research involves summarizing and synthesizing previously published data and literature by other researchers (Jones, 2015) Systematic methods of secondary data collection have become popular across several research fields as researchers use them to synthesize their findings In this study, secondary research involved the use of TPBank banking data and specific customer details collected from their Thao Dien branch Additionally, the research was complemented with theoretical arguments and industry data from various published sources
The interview questionnaire will be pilot tested after the initial questions have been developed to check for question clarity and to ensure that the questions are understood in a consistent manner (Saunders et al., 2019) The study will interview the pilot questionnaire the perspectives, experiences, opinions of senior management of bank to receive feedback Based on the results of the pilot study, the questionnaire will be revised by incorporating feedback from those who provided
43 comments from the pilot study As for the sampling method, the study uses a convenient sampling method, which provides a simple and expedient approach to sampling technique (Brewis, 2014) For this study, focusing on TPBank's Thao Dien branch as the research support unit provides a convenient sampling opportunity to identify relevant respondents for the main study The initial questionnaire interview was conducted over a period of 5 days with 5 participants (senior management), and the respondents were identified through a convenient sampling method
In this study as mentioned above, questionnaires will be used to help the research collect data on customer relationship and loyalty The research project focuses on identifying the factors that have the potential to build relationships with customers at TPBank's Thao Dien branch
A questionnaire consisting of a set of 18 questions related to customers' attitudes was developed to measure and enhance the customer retention of the bank's CRM capabilities Through these questions, customers can express their level of agree or disagree with the bank The questionnaire was designed in both English and Vietnamese with identical content for ease of data collection The survey questionnaire will be conducted directly with customers who have used services at TPBank's Thao Dien branch by contacting them at the counter and requesting their completion of a Google Form Online survey for the study With the aim of obtaining abundant and objective data from customers, the survey targeted 150 respondents with diverse demographics in terms of age, gender, occupation, and income level in Thu Duc city Subsequently, the research will focus on the central issue by asking
44 questions related to the research documents Finally, the responses will be extracted and the data will be statistically analysed for the research Statement of questionnaire is rated on rating scale ( 1-5 Likert Scale).
The validity and reliability of research instrument
An effective research project necessitates the utilization of valid and reliable instruments, irrespective of their type Leedy and Ormrod (2014) underscore the significance of assessing the validity and reliability of research instruments, as they play a critical role in enabling researchers to obtain insights into the phenomenon under investigation, achieve statistical significance in data analysis, and draw meaningful conclusions from the data Furthermore, researchers can enhance the validity of their research by utilizing multiple data sources, thereby increasing the accuracy and consistency of their findings In our study, we used questionnaires and interviews as the primary sources of data, as outlined in the previous sections By adopting this approach, we expanded the validity of our research by integrating data from both internal and external parties, culminating in more comprehensive and reliable findings
To ensure the effectiveness and quality of research, specifically mixed methods in this research, it is essential to avoid inaccurate information and subjective decisions Consequently, a test-retest reliability approach was adopted by undertaking a pilot questionnaire which was employed to determine the reliability of the questionnaire Specifically, a set of pilot questionnaire was administered to the staff of TPBank Thao Dien of respondents five days later Subsequently, the questionnaire was
45 revised to address any issues in the questions before the research instruments were administered to the target population This pilot study was invaluable in refining the questioning format used in the questionnaires, thus contributing to the development of more effective research instruments
Moreover, the reliability of the research instruments were improved by employing the Likert scale approach to collect responses from the participants This method standardized the measurement process, guaranteeing that the responses were both comparable and consistent Consequently, the probability of obtaining accurate and dependable data was elevated, contributing to the overall quality of the research findings
According to Saunders et al (2019), research validity is characterized as the extent to which a research instrument corresponds to its intended measurement purpose Various research contexts necessitate distinct forms of validity, including face validity, content validity, criterion validity, and construct validity To establish content validity, it is imperative to guarantee that the individual question items incorporated in the research instrument encompass essential elements derived from pertinent literature, which hold significance in the realm of CRM strategy and systems implementation within banks and similar organizations By adhering to this procedure, the research instrument can effectively measure the intended constructs and accurately capture the key variables under investigation
Research Ethics
As research typically involves primary research, ensuring that research ethics are deemed reasonable and appropriate is of utmost importance In order to achieve this objective, research ethics principles are commonly employed Such principles may include obtaining informed consent, ensuring anonymity and confidentiality of research participants (Saunders et al., 2019)
In the current study, the primary objective is to gather necessary data and information on customers through TPBank Thao Dien branch As such, adherence to research ethics principles was a top priority to safeguard the confidentiality of the research results To this end, the research ethics checklist for this study is based on the University of Bolton guidelines for conducting research, RE1 is submitted to ensure that the information collected was truthful and accurate Additionally, all citations were made in compliance with the regulations of the University of Bolton
Findings and Analysis
Introduction
This chapter presents the findings obtained from the survey questionnaire and the initial assessment of TPBank's CRM The first, the qualitative analysis is conducted on all questions in the interview with the senior manager at the bank The second, descriptive statistics were used to establish control variables and the basic characteristics of TPBank's CRM towards target customers The subsequent step involved relying on a consumer survey questionnaire to analyse the effectiveness of the current policies and CRM dimensions implemented by TPBank for the organization.
Qualitative results and analysis
Table 4.1 The table of interview participants
In certain banks, the interpretation of CRM vision by different departments may vary
Some banks perceive CRM as a mere software for handling customer calls, whereas others view it as a marketing tool and set of techniques aimed at maintaining customer relationships to meet their needs However, during an interview with the Customer Relationship Director and Branch Manager at TPBank, a distinct
48 explanation of the CRM vision was provided, stating that: "CRM refers to a series of actions conducted by banks to establish and maintain enduring relationships with both existing and prospective customers Our bank stores customer information in the CRM system when an account is opened The system then generates a customer account profile using the ID card number or date of birth provided We value all customers and strive to nurture long-term relationships with each of them Our branch bank assumes responsibility for maintaining these relationships, which can be sustained through effective communication and addressing customer needs via our CRM system." Similar perspectives were expressed by other employees of selected banks, with TPBank appearing to be in the early stages of implementing a comprehensive and consistence CRM system
During an interview with TPBank's Customer Relationship Director, details on branch-level CRM operations were provided TPBank's Thao Dien branch offers numerous facilities, including 24/7 account opening, bill payment, balance inquiry, provision of bank statements, customer account upgrades/downgrades, and fund transfers All branches of the bank are equipped with state-of-the-art computers and communication systems, with employees using the bank's internal communication channel Upon arrival at any TPBank branch, customers are greeted by service staff who provide useful information on the bank's products The staff are fully trained and can answer any questions regarding the bank's products, directing customers to the relevant staff member for further assistance as needed In addition, the call center also employs staff who handle customer service utilities Furthermore, with regards to the questionnaire, although nearly all of the interviewees concurred with it, several
49 proposed modifications to customize it more effectively for the study As a result, the study revised and finalized the questionnaire for use in the customer survey for the branch.
Quantitative results and analysis
4.3.1 A Description of The Study Sample:
In order to implement the proposed model, a survey was conducted between March
8, 2023, and March 20, 2021, targeting customers who had made transactions at TPBank's Thao Dien branch in Ho Chi Minh City Prior to conducting the customer survey, the study team conducted a structured interview with the senior manager at TPBank Thao Dien to optimize the questionnaire The survey questionnaire was distributed via Google Forms to 150 respondents, of which 133 responses were deemed valid The study employed a convenience sampling method and utilized a set of questions designed to capture the four factors influencing customer retention in the bank's CRM system, measured on a scale of 1 to 5 using the Likert Scale
This section of the study presents the results of the statistical analysis based on survey questionnaire data The analysis utilized a combination of SPSS and Excel, enabling the provision of descriptive statistics and generation of a series of questionnaires It should be emphasized that the study population of 133 participants was considered adequate to establish statistically significant and valid responses, as indicated in the previous chapter's analysis The focus of this study was to improve understanding of the factors involved in CRM implementation under investigation in TPBank, so visual displays were employed to facilitate a clearer and more thorough explanation of these factors Each question will be analysed by the researcher to
50 review practical CRM in the bank, with the aim of seeking solutions that would facilitate improvement through implementation
As previously stated, the study population was comprised of 150 participants, and a convenience sampling method was utilized to obtain data Of these participants, 133 valid responses were obtained
Table 4.2 The demographic characteristics of the sample
The age distribution of the study population is significantly disparate across age groups, as demonstrated in Table 4.1 It can be seen from the above table that more than half of customers, namely 61.7% of the research population are between the
51 ages of 18 and 25, which clearly shows that TPBank is deploying a clear target market for GEN Z and GEN Y This observation is consistent with TPBank's customer focus, as mentioned in the introduction section, which is primarily on the younger generation To mitigate potential bias related to gender, it is recommended that the study population be evenly split between men and women Accordingly, the gender distribution of the survey population consisting of customers was calculated, revealing that 46.62% of the population was male and 53.36% was female Specifically, the population comprised of 62 males and 71 females
In terms of occupation, the findings indicate that the sample encompasses individuals from diverse professions, including students (37.6%), office workers (22.6%), and freelance business persons (17.3%) These groups have been evaluated to possess knowledge and skills that align with the assessment of TPBank CRM in the research Regarding income, out of the 133 surveyed customers, 60 of them have a monthly income of 10 million VND or more, representing 45.1% of the total sample Additionally, 24.8% of customers have an income ranging from 5-10 million VND These findings suggest that TPBank's primary customer base is from the middle class, which could aid managers in developing products and services tailored to the customers' purchasing power, and in formulating effective customer retention strategies In summary, these results are highly encouraging and may facilitate TPBank's implementation of targeted CRM strategies aimed at specific social segments
N Minimum Maximum Mean Std Deviation
Subsequently, as can be seen from the table 4.2 from the answers, the study is devoid of any significant missing data Upon further analysis of the study's minimum and maximum values, it was found that all values fell within the expected range, and the remaining values were used to compute the mean and standard deviation of the mutation under study The average value values of CRMT, CO, SC, and CR, which were all found to be above 3.6, indicate that the respondents agreed with the notion that TPBank's digital banking system guarantees precise information on products and transactions Furthermore, the respondents noted that TPBank consistently values and prioritizes its customers, effectively addresses concerns and complaints
53 related to their products and services, and maintains a diversified and effective organizational culture system that ultimately leads to the delivery of exceptional value to customers These finding suggests that, on average, the data displays only slight fluctuations, with a substantial number of participants indicating agreement levels around neutral, agree, or strongly agree, with minimal differences observed
As mentioned in the previous section, the demographic information of the subjects in TPBank's customer group was found to be quite similar This led to the study's expectation of low standard deviation along with the questions, so it is consistent with the theoretical background of the study
The first 4 questions of the study are a filter question used to establish the level of technological CRM capabilities of TPBank; The results are presented below and help to explain customer attitudes towards the technology services the bank provides to its users
Table 4.4 The table of responses to customer-question 1,2,3,4
Subsequently, it is recommended to refer to the table 4.3 above presenting the responses to customer questions 1, 2, and 3 Overall, this outcome suggests that TPBank has effectively implemented its CRM Technology capabilities, reflecting a sound CRM technology policy within the organization TPBank's digital banking service is an online platform that enables customers to access banking services at any time and from any location, using a computer equipped with internet connectivity and an access code Customers can execute various transactions, including checking account balances and statements, querying credit and debit card information, and subscribing to other electronic banking services TPBank-Mobile Banking application also provides a range of useful support tools, such as exchange rate information, ATM locations, and portfolio management for securities
Additionally, the bank prioritizes enhancing the speed of transaction processing, responding to customer inquiries and complaints, and improving card service features to better meet customer expectations
The subsequent section of the questionnaire, comprising the following three questions, endeavours to elicit information on the customer orientation capabilities currently being employed by TPbank for its customers
Table 4.5 The table of responses to customer-question 5,6,7
Based on the percentage of responses from the level of agreement or higher of 3 questions, it is evident that the bank has a strong customer orientation Specifically, it can be seen that there are at least 39 concurring opinions (equivalent to over 30%) in response to each questions 5, 6, and 7 Therefore, the bank's customer orientation can be described as follows:
1 Customer-centric mechanism: The bank has a mechanism that is designed to be customer-centric at all touchpoints This means that the bank's policies, processes, and services are designed to prioritize the customer's needs and preferences
2 Relationship focus: The bank maintains and takes care of the relationship with customers This indicates that the bank is committed to building long-term relationships with its customers, rather than treating them as mere transactions
3 Customer-first approach: This demonstrates that the bank has a culture of putting the customer's needs and interests above all else
Overall, TP bank's customer orientation is focused on creating a positive customer experience, building lasting relationships, and prioritizing the customer's needs and preferences
The forthcoming set of inquiries aims to investigate the service capability factor at TPBank Thao Dien, which is likely to have an impact on customers' product purchase and retention The initial query with the 8th question assesses the degree to which customers concur with the notion that TPBank consistently facilitates the use of digital banking across all its channels The outcomes are displayed in the chart provided below
Figure 4.1 The bar chart responses to customer-question 8
Upon initial examination, it is evident that the highest level of customer consent received 44 votes, followed closely by 38 votes expressing very strong agreement
On the other hands, it is important to note that a considerable proportion of customers, about 15,1%, expressed dissatisfaction through 20 negative votes This may suggest that TPBank's implementation of dedicated customer support is still the most ineffective
Critical Discussion
The analysis in this chapter is not limited to a comprehensive quantitative and numerical examination; it also encompasses an explanatory analysis of the responses This analysis involves querying and utilizing the answers to scrutinize TPBank's current CRM system, capabilities, and issues Consequently, the findings of this study unequivocally support the literature, revealing a robust positive association between an organization's CRM system policy and capabilities in facilitating customer retention A review of the findings indicates that although the CRM system and application software contribute value and have a positive impact on service delivery, there are several points of disagreement among customers, necessitating changes
The analysis of customer data serves a valuable purpose in ascertaining the worth of individual customers, thereby balancing their relationship and actual contribution, as well as highlighting the concept of customer retention The results of the data analysis, derived from the survey conducted at TPBank Thao Dien, demonstrate the bank's pride in their central CRM system The analytical CRM system meticulously scrutinizes each customer's information, which is stored in the database, and then generates personalized offers that cater to the diverse needs of different customer segments Simultaneously, the data exhibits compelling evidence of TPBank's CRM
63 functions through the analysis of individual customer responses Futhermore, the results of the analysis demonstrated that the bank's CRM capabilities were supplementary to an efficient CRM system in preserving customer relationships
Hence, the primary research question has been answered by this study, indicating that the current CRM functions sufficiently satisfy TPBank's necessities Additionally, the CRM model employed in this study was specifically designed to cater to the intricate demands of a comprehensive banking environment, incorporating a wide range of CRM infrastructure and operations, thereby establishing an ideal framework for facilitating CRM
In conclusion, this chapter underscores the effectiveness of CRM functions as a tool for customer retention with its products and brands However, it also highlights the need for the bank to develop a CRM strategy that caters to other generations, as the currently CRM system just appeals to younger customers Thus, the bank's CRM strategies must be improved, and contingency plans should be developed to help the institution address the challenges and business focus in the contemporary context.
Conclusions
The conclusion of this study in the current era of competition amongst commercial banks, it has become essential for banks to adopt CRM strategies to sustain and grow their customer base This study identifies the need for TPBank to optimize its CRM system, in response to the need for adapting to technological advancements, perceiving threats from competition, and ensuring customer convenience The study emphasizes that CRM strategies and applications provide insights into customer interactions and trends, enabling the organization to understand their needs and preferences better, and thereby improving customer retention and satisfaction
The findings of this study are consistent with previous literature on the relationship between CRM capability and customer retention, and demonstrate that consumers are more likely to repurchase or continue using an organization's products and services when its CRM system is working effectively Moreover, the study emphasizes that the focus must be on factors related to CRM implementation The analysis results of chapter 4 demonstrate TPBank's successful efforts in maintaining and developing customer relationships through CRM capabilities However, there is still room for improvement, and TPBank must continue to make efforts in customer relationship management to meet current and future customer needs and increase other utilities in the future
Finally, this research recommends several solutions to improve customer relationship management at TPBank, which can help the bank to target desired market segments and enhance brand reputation Implementing these recommendations can contribute to the growth of the bank's business activities in the future.
Recommendations and Further Research
Recommendations
The study effectively achieved its objectives by synthesizing CRM models proposed by well-known researchers in the field The selected CRM model, designed specifically for banks, was ideal for comparing the results obtained from the TPBank case study By analyzing and discussing the results from a case study and proposing CRM strategies for TPBank using components of the same CRM model, we identified strong points that can be incorporated into a new CRM model This new model can serve as a reference for researchers in both developed and emerging countries who study and analyze CRM operational issues in the banking sector Additionally, it can be said that the development of a CRM system at TPBank as a decisive factor for the bank's survival and growth in the context of fierce competition
As a result, several following recommendations are suggested to promote the sustainable development of TPBank.
Although the positive impact of TPBank's CRM technology on the decision-making process of consumers, especially in determining accurate information and needs, has been demonstrated, organizations should develop and strengthen product and service development and improve infrastructure to improve productivity and quality of products
Firstly, developing new services will expand operations, improve service quality, and maintain market share Priority should be given to allocating resources to research and develop customer services Developing high-tech customer services to improve and enhance productivity, speed, accuracy, and customer access to products and
66 services Secondly, ensuring stable technology systems is crucial to improving the quality of services provided to customers and creating favorable conditions for the development of new products Investment in technology serves to analyze and evaluate customer relationships, improve reporting systems to serve management and operations, and especially determine the cost-effectiveness of each product line
The bank's efforts to reach out to customers are relatively good, but there are still some opposing views about this work Therefore, the bank needs to enhance empathy and relationships with customers Management should adopt a combination of methods such as maintaining the task of monitoring and soliciting customer opinions through quality service surveys Customers who participate in the survey will be rewarded with gifts from the bank, such as vouchers or stuffed animals, to positively influence their participation These actions aim to send a message to customers that TPBank always cares about their expectations and the quality of products and services they receive This method should be conducted regularly, with direction and with various customer groups in mind
6.1.3 Improve service capability and organization:
The more banks exist in the market, the fiercer the competition becomes, especially in the customer service market where numerous banks offer attractive service packages to attract customers, particularly foreign banks Additionally, TPBank needs to promptly establish appropriate service policies to ensure competitiveness
67 and enhance customer service capabilities in the vibrant market, while addressing the pricing policy issues
Firstly, the human element is the most critical factor for the success of a service- oriented business Training programs should aim to enhance professional expertise, provide supplementary knowledge and skills, and emphasize the development of a modern and professional work ethic Recruitment procedures should consider the human resource requirements of the organization, adhere to recruitment policies and procedures established by the headquarters to recruit and attract skilled personnel Establishing a supportive work environment can facilitate individual potential to the fullest extent It is imperative to implement reasonable recruitment policies and compensation programs to retain and attract talent Additionally, the bank maintains a practice of regularly updating business knowledge and training employees on a variety of skills, such as professional, communication, problem-solving, and sales skills
The second factor to consider in setting service prices is a variety of elements, such as taking into account customer psychological factors, formulating bank positioning strategies, developing pricing charts for diverse customer groups, utilizing primary target pricing techniques, employing cost-aggregating pricing methods, and using differentiated pricing methods.
Further Research
As the present study aimed to examine solely the policies and capabilities of CRM at TPBank, it did not undertake the task of identifying the distinct CRM applications employed by other selected banks Consequently, an another future research could
68 delve deeper into exploring the diverse approaches to acquiring contemporary CRM applications, while also recommending the most suitable usability method for banks Notably, different banks adopt distinct methods for obtaining CRM applications based on their individual requirements and budgetary constraints
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To identify opportunities for optimizing TPBank's customer relationship management (CRM) capabilities and subsequently uncover sustainable competitive advantages through its Thao Dien branch, a survey questionnaire will be conducted
Instruction: Based on the Likert scale, the scale is rated according to the level of answering questions from 1: Strongly disagree, to 5: Strongly agree Please tick the most appropriate answer for your choice
Q1 To what extent do you agree with the statement? TPBank digital banking system always keeps accurate information about your products, interest rates and transaction amounts across channels
Strongly disagree Disagree Neutral Agree Strongly Agree
Q2 To what extent do you agree with the statement? TPBank always provide channels to enable seamless two-way communication between customers and employees (TPBank Livebank 24/7)
Strongly disagree Disagree Neutral Agree Strongly Agree
Q3 To what extent do you agree with the statement? TPBank systems are committed to providing services with outstanding utilities to customers
Strongly disagree Disagree Neutral Agree Strongly Agree
Q4 To what extent do you agree with the statement? The information that customers receive is consistent and reliable from different channels (Call center, social media, brand, etc.)
Strongly disagree Disagree Neutral Agree Strongly Agree
Q5 To what extent do you agree with the statement? The bank's mechanism is customer-centric at all touchpoints
Strongly disagree Disagree Neutral Agree Strongly Agree
Q6 To what extent do you agree with the statement? TPBank always tries to maintain and take care of the relationship with customers
Strongly disagree Disagree Neutral Agree Strongly Agree
Q7 To what extent do you agree with the statement? Both the institution and the bank staff always put the customer's priority first
Strongly disagree Disagree Neutral Agree Strongly Agree
Q8 To what extent do you agree with the statement? TPBank always supports/guides customers on using digital banking through its channels
Strongly disagree Disagree Neutral Agree Strongly Agree
Q9 To what extent do you agree with the statement? Banking charges are very high Strongly disagree Disagree Neutral Agree Strongly Agree
Q10 To what extent do you agree with the statement? When requested by customers, bank staff demonstrate willingness to provide service, even in the face of difficulties or beyond their usual working hours
Strongly disagree Disagree Neutral Agree Strongly Agree
Q11 To what extent do you agree with the statement? TPBank has strong financial resources and sales and marketing expertise to succeed in CRM (Explain: TPBank advertising policies are attractive and always receive a welcome from customers, for example: TPBank organizes music and technology event "Beyond The Future", Son Tung MTP is brand ambassador for TPBank)
Strongly disagree Disagree Neutral Agree Strongly Agree
Q12 To what extent do you agree with the statement? TPBank's staff training programs are professionally designed to develop necessary skills for employees Strongly disagree Disagree Neutral Agree Strongly Agree
Q13 To what extent do you agree with the statement? Employee performance is measured and rewarded through a performance statistics system that successfully meets and serves customer needs (Explanation: TPBank's transaction office quarterly/yearly displays a certificate of merit for the best employee at the office.)
Strongly disagree Disagree Neutral Agree Strongly Agree
Q14 To what extent do you agree with the statement? TPBank always spends time and resources to research and develop products and customer relationships
(Explanation: TPBank's products and services are always diversified and constantly updated with innovation from time to time.)
Strongly disagree Disagree Neutral Agree Strongly Agree
Q15 To what extent do you agree with the statement? I am satisfied with the appropriate service the bank provides me
Strongly disagree Disagree Neutral Agree Strongly Agree
Q16 To what extent do you agree with the statement? I have good relationship with the bank
Strongly disagree Disagree Neutral Agree Strongly Agree
Q17 To what extent do you agree with the statement? I have no intention of switching to another bank's services
Strongly disagree Disagree Neutral Agree Strongly Agree
Q18 To what extent do you agree with the statement? I have intend to experience and use with new banking products and services
Strongly disagree Disagree Neutral Agree Strongly Agree
TPBank digital banking system always keeps accurate information about your products, interest rates and transaction amounts across channels
TPBank always provide channels to enable seamless two-way communication between customers and employees (TPBank Livebank 24/7)
TPBank systems are committed to providing services with outstanding utilities to customers CRMT3
The information that customers receive is consistent and reliable from different channels (Call center, Social Media, Brand, etc.)
The bank's mechanism is customer-centric at all touchpoints CO1
TPBank always tries to maintain and take care of the relationship with customers CO2
Both the institution and the bank staff always put the customer's priority first CO3
TPBank always supports/guides customers on using digital banking through its channels SC1
Banking charges are very high SC2
When requested by customers, bank staff demonstrate willingness to provide service, even in the face of difficulties or beyond their usual working hours
The Bank possesses a sound policy for redressing customer grievances SC4
TPBank has strong financial resources and sales and marketing expertise to succeed in CRM CRMO1
TPBank's staff training programs are professionally designed to develop necessary skills for employees
Employee performance is measured and rewarded through a performance statistics system that successfully meets and serves customer needs
TPBank always spends time and resources to research and develop products and customer relationships
I have good relationship with the bank CR1
I have no intention of switching to another bank's services CR2
I have intend to experience and use with new banking products and services CR3
RESEARCH INSTRUMENT - STAFF INTERVIEW QUESTIONS
The Interview with senior management to optimize CRM survey questionnaire at Tien Phong Commercial Joint Stock Bank
Instruction: Please the most appropriate answer and give brief reason(s) for your reasons where necessary
1 What is your profession in a bank ?
2 How long have been with the bank ?
3 What do you think about the CRM system ?
4 How you b nk uses he cus ome s’ info m ion?
5 What type of accounts does your bank offer?
6 Who is main responsible with the customers using the CRM system at
7 How do you ensure it is working 24/7, 365 days a year?
8 During the research process, my research concluded and gave a questionnaire to TPBank's customers, do you agree with this questionnaire? If not, can you give me some other reasons or suggestions for research questions?
RESEARCH ETHICS CHECKLIST – FORM RE1