Empirical Investigation of the CRM Concept in the Jordanian Context: The Case of Banks and Financial Institutions

  •  Sami Alsmadi    
  •  Ibrahim Alnawas    


The purpose of this study is to develop a CRM model and empirically test its underlying constructs in the banking
and financial sector in Jordan. The empirical data was collected from a convenient sample of 141 banks and
financial institutions, drawn from three major Jordanian cities (Amman, Irbid, and Al-Zarqa). A drop-off method
of data collection was used (Aaker et al. 2004). The findings show that Jordanian banks and financial institutions
were likely to have a clear CRM strategic vision with specific goals and programs, possess necessary resources to
establish CRM, be able to manage CRM programs, and use two way communications to handle CRM.
Nevertheless, the analysis unveiled that these firms were not likely to have a sufficient marketing database, nor
customer intelligence, with little motivation to either measure effectiveness of CRM programs or take actions to
improve an unpopular CRM strategy. Further analysis of the findings indicated that the CRM concept did not seem
to be well incorporated in the business strategy of most Jordanian banks and financial institutions. Several
recommendations were made and certain directions for future research were highlighted.

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