RELATIONSHIP MARKETING PRACTICE IN THE NIGERIAN BANKING INDUSTRY
ABSTRACT
          This project entitled “Relationship Marketing Practice in the Nigerian banking industry” examines how banks have used this strategy overtime, the various goals of relationship marketing, the benefits of adopting this strategy, the cost of adopting relationship marketing, the measure of profitability involved using this strategy and the problems involved in adopting this strategy.
         This research was carried out using the banking industry in Nigeria as the population of the study and Access bank and Zenith bank of Nigeria Plc. were used as the case study. The major findings in this research work was that banks use relationship marketing as a strategy to gain customers loyalty by paying attention to their complaints and dissatisfaction and finding better ways to resolve them. It was also revealed that adopting this strategy has effect on profit both in the short-run and in the long-run. Banks have put measures in place to ensure the proper functioning of this strategy but it was revealed that the strategy that the strategy lacks proper implementation and evaluation thereby being less effective and efficient and also, workers do not take this strategy serious as part of routine task or purpose for which they were employed to perform in the organization.
        Finally, based on these findings, it was recommended that banks should equip staff with facilities needed to develop relationship with customers and also train staffs on how to address customers and develop relationship with them. It was also recommended that organization should motivate their workers by giving incentives to staffs that are most customer friendly.
TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1    Background to the study         -    -    -    -    -    -    -     
1.2    Statement of Research problems     -    -    -    -    -    -    -    
1.3    Research questions     -    -    -    -    -    -    -    -    
1.4    Objectives of the study     -    -    -    -    -    -    -    -    
1.5    Research hypothesis  -    -    -    -    -    -    -     -              -      
1.6    Scope of the study         -    -    -    -    -    -    -          
1.7    Significance of the study        -        -    -    -    -    -    -    -    
1.8 limitations of the study          -         -       -           -           -          -           -           -           
CHAPTER TWO: LITERATURE REVIEW
2.1    Introduction     -    -    -    -    -    -    -    -    -    
2.2       Historical evolution of relationship marketing in the banking industry    -        
2.2.1    Customer relationship marketing in the banking sector    -    -    -    -    
2.3    Concept of customer relationship management-    -    -    -            
2.3.1   Benefits of customer relationship management             -                  -         -    
2.3.2     The introduction and growth of relationship marketing-    -    -    -         
2.4       Theoretical framework -         -    -    -    -    -    -    -      
CHAPTER THREE: METHODOLOGY
3.1     Introduction                 -    -    -    -    -    -    
3.2     Research design                 -    -    -    -    -    -
3.3     The population and Sampling Method     -    -    -    -    -    -
3.4    Operationalization and Measurement of variables    -    -    -    -     
3.5     Research instrument                     -    -    -    -    
3.6     Sources of data                        -    -    -    -
3.7    Methods of data analysis                     -    -    -    -
3.8    Reliability test                    -    -    -    -    -    -CHAPTER FOUR: DATA ANALYSIS AND ANALYSIS
4.1 Introduction        -    -    -    -    -    -    -    -    -
4.2. Data Presentation    -    -    -    -    -    -    -    -
4.3. Analysis of Data    -    -    -    -    -    -    -    -    -
4.4 Respondents Analysis    -    -    -    -    -    -    -    -
4.5 Hypothesis Testing    -    -    -    -    -    -    -    -
4.6 Discussion of Findings     -    -    -    -    -
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1. Introduction             -    -    -    -    -    -    -    -
5.2 Summary of Findings             -    -    -    -    -    -    -
5.3 Conclusion             -    -    -    -    -    -    -    -
5.4 Recommendations         -    -    -    -    -    -    -    -
5.4.1    Policy Recommendations/Implications    -    -    -    -    -    -
5.4.2    Further Studies    -    -    -    -    -    -    -    -    -
    BIBLIOGRAPHY     -    -    -    -    -    -    -    -    -    -
APPENDICES:    Appendix I    -    -    -    -    -    -    -    -    -
 CHAPTER ONE
1.1        BACKGROUND TO THE STUDY            
Many business organizations are involved in the production of goods and services for consumers in order to satisfy their needs at a profit, this businesses are faced with lots of competitors involved in the same line of activity and one of the best ways to maintain and retain customers in order not to lose them to competitors is by adopting the method of relationship marketing. This strategy involves understanding customers and the continuous satisfaction of their needs and wants in order to ensure repeat purchase (Dawkins, 2004). Businesses today are blending transactional marketing with relationship marketing in selling their products and services. Companies that want to remain in the industry with an increased market share have to blend these two processes as a strategy for organization’s success. Customers’ relationship seeks to establish a base of customers who are committed to and profitable for the organization by targeting the customers who are likely to become long-term customers. This long-term customers are more likely to purchase additional products and services if they are satisfied with current products and services they receive. They may also help to attract new customers through the word of mouth.
Managers or executives adopt relationship marketing as a method or strategy in their organization with the aim of retaining and maintaining customers. Financial institutions especially banks, are economic decision units established for the purpose of  providing financial services to target market with a primary objective of making adequate returns or profits to investors without neglecting other social objectives in the society. For the overall corporate objectives of prosperity, growth, and continued life of the business, banks need to conscientiously structure their services in a way that can cater for the financial needs of not only the present customers but also for the prospective ones. Information technology has enabled companies to develop extensive data base concerning existing and potential customers. This information is useful in segmentation, account management, and many other marketing applications. Technology can be used by companies to interact with the customers and develop flexible customer-level responses. Data base are an important part of customer relationship marketing. However, firms spend far more on integration, back-up, and management of customer relationship marketing (CRM) compared to software expenditures (Gary, cravens and Piercy, 2011).
Agbonifoh, ogwo, Nnolim, Nkanneble (2007) emphasized that relationship marketing is aimed at targeting, establishing, maintaining and enhancing relationship with customers and other partners in order to achieve maximum profit, so that the objectives of the parties involved are met. This is achieved by the mutual exchange and fulfillment of promises. Such relationships are usually but not necessary long term. In spite of all the importance and benefits derivable from relationship marketing practice, it can be discovered that many banks and institutions still lose their customers to competitors. No wonder many bank customers keep moving from one bank to another in search of satisfaction and better friendly customer friendly services. This contributed to the failure of banks and some banks are at the verge of collapsing poor relationship with customers or failing to use relationship marketing strategy properly. In contrast, banks that are judiciously using relationship as a strategy have success story and customers can attest to it while failing banks when counting their ordeal, it reveals that there has been lapses in areas of customer relationship development.
 This research work is aimed at improving the use of relationship marketing as a strategy for survival by the banks that has adopted it and can inculcate it into their policies and strategies for proper performance in the industry.
1.2 STATEMENT OF RESEARCH PROBLEM
Difficulties experienced in banking industry today makes managers to be desperate such that bank ”A” manager does not only see bank “B” manager as competitor but a branch manager of the same bank sees each other as a competitor. This level of competition has made bank managers to focus and strategize on how to be in close contact with their customers in order not to lose their active customer to their presumed competitors. Bank services are increasing in Nigeria, yet the level of failure in the services indicates that ineffective relationships with customers seem to be pronounced. Such a gap indicates that there is much to learn about how to create close contact with customers using the appropriate relationship strategies. Banks generally today has become dynamic in nature thereby changing from one service provision to the other, most times combining many services together relocating or establishing another branch so as to meet the needs of their customers and to show the generality of public that their services are unique and better than the others. However, these services or branches established as not translated to customer satisfaction as customers experience human traffic while trying to access these services. This has destabilized bank customers thereby forcing them to open more than one account across the banking industry in order to satisfy their financial needs. This movement of customers from one bank to the other has created serious understanding among the banks executives thereby leading to the provision of customers’ service point in most bank branches across the country for the purpose of developing a relationship that can lead to consistent patronage by their customers.
    It is on the basis of the inability of Nigerian bank managers to take cognizance of the impact of customer relationship marketing on bank performance that this study is being carried out.
1.3`OBJECTIVES OF THE STUDY
The broad objective of the study was to examine the practice of relationship marketing in the Nigerian banking industry.
The specific objectives were to:
1)     determine the impact of relationship marketing on banks performance
2)     investigate the cost of practicing relationship marketing
3)     ascertain the measure of profitability accruing from relationship marketing
1.4 RESEARCH QUESTIONS
1)    What extent does relationship marketing affect bank performance
2)    What is the cost involved in practicing relationship marketing
3)    What extent do relationship marketing leads to increase in bank profitability
1.5 SIGNIFICANCE OF THE STUDY
    According to Ogbuji, Izogo and Alagah (2011), the successful application of relationship marketing in industrialized nations is not a guarantee to its successful application inn developing countries like Nigeria. It is o this identification, as well as similar empirical findings from other developing countries, that this research seeks to identify the relationship marketing impact on bank’s performances in Nigeria. Therefore, the significance of the study can be traced to the fact that; the overall performance of relationship marketing in Nigeria has not been fully studied. Despite the abundant literatures on this topic in other parts of the world as pointed out by Gilbert & Choi,(2003). African scholars especially Nigerians, have not been able to make extensive research to provide adequate indigenous literature on the subject, hence the need for the study.
    It is hoped that this research work will be useful to both students and management executives in understanding the usefulness and importance of relationship marketing and how it can be implemented and evaluated. It will also assist organizations to know the feasibility of relationship marketing as a business model, process methodologies and interactive technology for achieving and maintaining high level of retention and referrals within identified categories of valuable and esteemed customers
1.6 SCOPE OF THE STUDY
In the course of this research work, findings and research experiment were carried out byuse of questionnaires. The Nigerian banking industry was the sector under consideration. Geographically, the study was limited to Access bank and Zenith bank within the University of Benin (Ugbowo campus) Benin City.
1.7 LIMITATION OF THE STUDY
Though this research was properly conducted, some limitations were however observed. One of these observed limitations was the low and delayed response from respondents which prolonged this research work. Another noticeable limitation is the time frame for the conduct of this research work. The available time frame for data gathering, analyzing and interpreting are considered inadequate for in-depth findings. Also seen as limitation of the study was the incomplete questionnaires returned by respondents used in carrying out the analysis.