DETERMINANTS OF CUSTOMER RELATIONSHIP MANAGEMENT STRATEGIES ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN WESTLANDS NAIROBI CITY
Eric W. Njoroge - Masters Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Kepha Ombui - Senior Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The aim of this research was to examine the motives for which SMEs in Westlands adapt the elements of CRM practices with particular reference to whether this has impact on organizational performance. Specifically, the study aimed to achieve the following specific objectives: determining the influence managements’ support on the performance of SMEs; establishing the influence of customer focus on the performance of SMEs; determining the influence of CRM processes on the performance of SMEs; and establishing the effect of social dimension on the performance of SMEs. Descriptive research design was used with a target population of 900 and a sample size of 102 SMEs was selected using the stratified sampling technique. The questionnaire and the data collection sheet were administered to the business owners and managers through drop and pick. Quantitative data was summarized using descriptive statistics which include mean, standard deviations, frequencies and percentages. The study found out that the respondents were in agreement to a great extent that the management of SMEs were customer focused, reduces as much as possible the organizational constraints, involves all employees in setting up CRM strategies, provides adequate training material and information and allocates adequate resources and budget for CRM. The study recommends that management should take measures to ensure that they adopt CRM strategies and that government and relevant organizations should provide more training to young people on the best CRM strategies to adopt in marketing, finance management and production process in order link their operation to the customers to improve performance in SMEs.
