Customer Relationship Management and Company Revenue Generation: A Case Study of First Micro Credit Finance Mutare

Abstract

The main objective of the study was to investigate on the impact of customer relationship management strategies employed by First Micro Credit Finance (FMC) on its revenue generation. The study adopted a descriptive research design which used both primary and secondary data as well as qualitative and quantitative methods. Primary data was collected using questionnaires and interviews while the secondary data was obtained from newspapers, journals, magazines, internet and other published reports The study was based on a population of 100 respondents in the form of employees and customers of FMC Finance (30 FMC Finance staff drawn from the employees’ database of FMC staff based in Mutare and 70 customers in the Mutare customer database) who were later sampled to a size of 80 respondents. A regression analysis and correlation matrix was performed to test the relationship between customer relationship and revenue and descriptive statistics. The study found out that customer relationship strategies were adopted to a moderate extent at FMC Finance. The study also found out that a significant positive relationship existed between customer relationship strategies at FMC Finance and revenue. The study also found out that pricing models, services improvement, responsiveness, tangibility and reliability of brand were the factors that could be flexed to improve customer relationship. The study also found out that improving customer relationship requires a focus on continuous customer surveys, process management, updating of customer files, early identification of dissatisfied customers, tracking of dissatisfied customers. The study concluded that loyalty programs, service quality programs and extra ordinary customer services constituted the most widely used relationship strategies at FMC Finance and strategies which were adopted to a moderate extent included monitoring customer services, effective communication, customer clubs and effective recovery systems. The least adopted customer relationship strategy was promotions. The study also concluded that improving customer relationship strategies at FMC Finance required a focus on continuous customer surveys, process management, updating of customer files, early identification of dissatisfied customers, tracking of dissatisfied customers. The study recommended that FMC Finance should strengthen its customer bonds as it enables the firm and its customers to both commit resources to the relationship built on high levels of trust and commitment. The study recommended that in order to increase customer relationship rates, FMC Finance should continue providing extraordinary customer service. The study also recommended that FMC Finance should allocate budgets to promotional activities to boost its public image.