Effectiveness of Customer Relationship Management on Customer Satisfaction in the Commercial Banks of Taiwan

Abstract

The understanding of how to manage customer relationship effectively has become an important topic for both academics and practitioners in recent years. However, the existing academic literature on customer relationship management (CRM) strategies of banks does not provide a comprehensive outline of what specifically constitutes CRM phases. This study has three purposes: to conceptualize and operationalize the CRM implementation in commercial banks in Taiwan; to determine whether the CRM implementation is positively associated with customer satisfaction; and to determine key moderators between CRM implementation and customer satisfaction. Findings revealed that CRM implementation is associated with customer satisfaction; and there are significant interactions amongst IT capability, contact rate management and recovery management with customer satisfaction. A regression model was churned to evaluate the criteria to measure the level of CRM implementation on customer satisfaction. Keywords: CRM, Commercial Banks, Customer Satisfaction, Organizational Characteristics, and Eigen Value