Effects of Customer Relationship Management systems on financial performance of Commercial Banks in Kenya
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Commercial Banks in Kenya have continually invested in technology and in particular, Customer Relationship Management (CRM) systems and trained employees on how to handle these systems. The foundation for the development of CRM systems is generally considered to be relationship marketing. These systems provide the foundation and tools commercial banks need to implement processes that maximize opportunities and design client experience that differentiates them from competitors. The purpose of the study was to examine effects of adopting customer relationship management systems on financial performance of commercial banks in Kenya. The target population for this study were commercial banks that have been in operation between the years 2013 to 2017. A cross sectional study design was used. Primary data was collected using structured questionnaires. The findings showed that with the adoption of CRM systems commercial banks in Kenya have improved their overall engagement with their customers. This has led to innovation of a variety of products for bank customers. The main challenges observed in the adoption of CRM systems were rapid rate of technological change on CRM systems and high operational costs such as need for continuous staff training resulting in the need to hire skilled staff. The results of this study will inform bank management on the cost –benefit analysis on decision to invest in CRM systems.