CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The condition of the market and business environment of the contemporary time is witnessing rapid change. Business often must respond to this rapidly changing environment. Environmental change has been a business focus for decades. Now, a well established new comer is changing the traditional business environment even more: information technology; the internet and the electronic commerce are the new players disrupting the business environment. Even more critical is the development of entirely new business. Given these changes, businesses have rediscovered that, more than ever, in the face of increased competition, matured market, and ever demanding customers, treating existing customers well is the best source of profitability and sustained growth (Hair etal, 2012). Today, companies have realized that customers are the life blood of the business; business survival is largely depended on the customers. The realization of this fact has made it possible for companies to have a better chance to out perform competition. Customers are therefore, better satisfied through a competitive superior product and services beyond their expectation. Satisfying the customer eventually graduate into a relationship where the company sees the customer as part of the business and business decision making by continuously seeking customers opinion. According to Kotler and Keller (2012) marketers must connect with customers, informing, engaging, and may be even energizing them in the process. Having every detail of organization’s customers gave birth to the marketing concept known as customer relationship management (CRM). Customer relationship management is a vital issue in the banking sector due to its capacity to enhance revenue if given the proper attention it deserves. The competitiveness of banks in Nigeria call for individual banks to strategize on how to retain and maintain both the existing and potential customers. Mahesh and Bhavani (2015) view Customer Relationship Management as a fundamental tool for building a customer-centric organization. According to them it is a Key element that allows a Bank to establish its customer base and boost revenue. Also, the goal of CRM is to manage all aspects of customer interactions in a manner that enables the organization to maximize Profitability from every customer. The Nigerian banking sector has gone through a lot of pressure due to government regulations that most times have adverse effect on their financial performance
