Relationship Marketing in the Banking Industry: a Case Study of Ecobank Ghana Limited.
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Date
2008-08-23
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Abstract
The marketing environment within which banks operate has undergone tremendous changes over the past decade due primarily to government's deregulation policy, technological advancement and increasing competition. These factors have resulted in creating new behaviours and challenges.
With increasing competition among banks, customer loyalty to their bankers' has defined. Today's customers are approached by more competitors with equal or better offers. As such, most customers have become more willing to use more than one financial institution to meet their needs and to switch funds for short-term gains. The ultimate challenge facing banking organizations today is not merely to produce satisfied customers as most competitors can do this but to produce loyal customers for strategic purposes.
Marketing theory and practice have recognized this paradigm shift from the art of attracting new customers to retaining existing ones. Within this context, the study sought to carefully examine how Ecobank Ghana Ltd. has operationalised the basic tenets and philosophy of relationship banking as a strategic marketing tool to better manage its customers.
The findings have shown that the effective incorporation of relationship marketing into its banking policy has enabled the bank to achieve higher customer retention and by extension improve its profitability status despite intense competition.
The strategic implication is to build good relationship with your key, current customers and profitable transactions will follow
Description
A long essay presented to the KNUST School of Business in partial fufuilment of the award of a degree in Master of Business Administration, 2008