CUSTOMER RELATIONSHIP MANAGEMENT AND ENTREPRENEURIALCOMPETITIVENESS OF MICROFINANCE BANKS IN YENAGOA, BAYELSASTATE

Abstract

This study investigated the relationship between customer relationship management and
entrepreneurial competiveness in the context of micro-finance banks in Yenagoa, Bayelsa
State. The study specifically investigated the relationship between customer relationship
practices, customer knowledge management and customer interaction on entrepreneurial
competitiveness, measured by innovativeness and proactiveness, in microfinance banks in
Yenagoa, Bayelsa State, Nigeria. An Explanatory research design was adopted with a
Correlational Study. Data were collected from 70 employees (determined via Taro Yamane
formula) using structured questionnaires, achieving a 94% response rate. Pearson Product
Moment Correlation, conducted via SPSS version 25.0, tested the relationships between
variables. Findings revealed significant positive correlations: customer knowledge
management with innovativeness and proactiveness and customer interaction with
innovativeness and proactiveness. Customer interaction showed the strongest influence on
proactiveness, emphasizing the role of direct engagement. The results align with Social
Exchange Theory, highlighting reciprocal benefits, and Resource-Based View Theory,
underscoring CRM as a strategic resource. We therefore conclude that customer relationship
management significantly improves entrepreneurial competitiveness of firms. The study
recommends that enhancing CRM systems for data analytics, training staff in client
engagement, and leveraging insights for innovative products.