Customer Relationship Management in Financial Services: An Integrated Engagement Effectiveness Model for Long-Term Institutional Success

• Author(s): Priscilla Samuel Nwachukwu ; Onyeka Kelvin Chima ; Chinelo Harriet Okolo
• Paper ID: 1710333
• Page: 551-573
• Published Date: 31-05-2021
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 4 Issue 11 May-2021

Abstract

Customer relationship management (CRM) has become a cornerstone of institutional success within the financial services sector, where customer loyalty and trust directly influence long-term profitability and sustainability. This study proposes an integrated engagement effectiveness model designed to assess and enhance CRM practices in financial institutions. The model synthesizes traditional relationship marketing principles with emerging digital capabilities, including artificial intelligence, big data analytics, and personalized financial advisory systems, thereby offering a holistic framework for customer engagement. It emphasizes the interplay between customer trust, service quality, perceived value, and emotional connection as critical determinants of relationship durability. The research highlights how the integrated model addresses multiple dimensions of engagement effectiveness, including proactive communication, personalization of services, omnichannel banking experiences, and ethical practices that align with regulatory expectations. By analyzing customer behavior patterns and institutional strategies, the model underscores that effective CRM extends beyond transactional efficiency to encompass strategic engagement and value co-creation. Furthermore, the framework identifies potential challenges such as rising customer expectations, competition from fintech disruptors, data privacy concerns, and cultural resistance within traditional banking environments. Through its conceptual contributions, this model provides financial institutions with a structured pathway for strengthening long-term customer relationships and ensuring institutional resilience in competitive markets. It illustrates how banks and other financial entities can leverage technology-enabled CRM practices to enhance retention, increase cross-selling opportunities, and foster sustainable trust. In doing so, it positions engagement effectiveness as both a strategic advantage and a measurable outcome, reinforcing the view that customer-centricity remains vital for financial service providers seeking enduring success. The integrated engagement effectiveness model thus offers both theoretical insights and practical guidance, laying the foundation for future empirical studies and industry adoption.

Keywords

Customer Relationship Management, Financial Services, Engagement Effectiveness, Customer Retention, Service Quality, Digital Transformation, Customer Loyalty, Artificial Intelligence, Big Data, Institutional Success.

Citations

IRE Journals:
Priscilla Samuel Nwachukwu , Onyeka Kelvin Chima , Chinelo Harriet Okolo "Customer Relationship Management in Financial Services: An Integrated Engagement Effectiveness Model for Long-Term Institutional Success" Iconic Research And Engineering Journals Volume 4 Issue 11 2021 Page 551-573

IEEE:
Priscilla Samuel Nwachukwu , Onyeka Kelvin Chima , Chinelo Harriet Okolo "Customer Relationship Management in Financial Services: An Integrated Engagement Effectiveness Model for Long-Term Institutional Success" Iconic Research And Engineering Journals, 4(11)