Key Words:

Customer Relationship Management, Critical Success Factors, Local Government Authorities

Introduction

Customer Relationship Management (CRM) is the new concept of marketing that is now embraced in state owned enterprises. Of late, it used to be visible in the private sector. Most government institutions are believing that business presence is vital compared to customers. Many government departments do not value the needs and wants of its citizens. The local authorities in Zimbabwe are more focused on product availability and access without considering long term relationship with the customers. This seems to be caused by lack of competition, over reliance on government grants and support. The researchers have observed that the Zimbabwean government support to the local authorities and councils, in the form of grants and resources, is decreasing and diminishing. This growing trend clearly shows the need of CRM in local government authorities. Vel & Sohail (2012) argued that the key objective of customer relationship marketing is to develop and keep existing clients, decrease marketing budget and promote strong relationships with customers. Competition is increasing and affecting all business ventures. CRM is one of the strategies needed to be embraced by local authorities in order to gain a competitive advantage. CRM seeks to build and cement long term client relationship that centers on the life-time value of customers. The researchers have observed that many local authorities in Zimbabwe are failing to provide sufficient quality services to the citizens due to shortage of resources, corruption and political instabilities and power conflicts among political parties governing the local government authorities. Customers are resorting to other alternatives at the expense of local authorities’ services. For example, many citizens are now putting solar systems, erecting their own water boreholes as strategies to access services which many local authorities are failing to provide. Customer priorities and needs are not considered or implemented by many local authorities. Many local authorities seem to be clueless on what exactly is needed to retain and build trust with the customers. Thus, the critical question in this research is: What are the key critical success factors for executing the CRM Strategy among the local government authorities?

Literature Review

Customer Relationship Management

Customer Relationship Management (CRM) has got different definitions, however, the overall focus of CRM is simply to acquire, nurture and retain loyal customers to the business. This marketing philosophy is lacking in practice in many local government authorities in Zimbabwe. Customer requirements are not prioritized, as most local authorities are focusing on personal interest and politics at the expense of the rate payers and citizens. This is worsened by the fact that many local authorities in Zimbabwe does not have CRM officers to acquire, develop and retain customers. Many local authorities in Zimbabwe and Africa in general are production oriented. They believed in mass production and distribution of products without considering customer requirements. They are not customer centric but the focus seems to be centred of personal enrichment and politics without considering customer requirements. Customer voice is not considered. This seems to be caused by lack of knowledge on how to implement CRM Strategy.

The purpose of customer relationship management is to form long lasting profitable relationships with clients (Chiguvi, 2018). To accomplish this objective two-way communication is needed with the citizens. Effective communication with citizens helps to build and maintain good mutual relationship with customers (Chiguvi, 2017; Baran et al., 2008). It is vital to note that CRM is not only about bring clients to the organization, but it is also about nurturing and retaining clients. This seems to be lacking in most local authorities in Zimbabwe. Most local authorities have clients but they do not how to manage and retain the clients. Good management of customers enables businesses to develop profitable relationship and to gain competitive advantage. Most CRM scholars have argued that, if customers are managed effectually, they grow and stay longer in the organization (Chiguvi, 2018). Clients feel happy if the organizations show love to them. This infers that local government authorities in Zimbabwe should show love to their clients if they are to achieve CRM strategy success. Careful planning is necessary before the CRM Strategy implementation. Many local authorities do not follow due diligence before customer relationship management implementation. Lack of harmony among all stakeholders is another hinderance factor which limit CRM Strategy success in many local government authorities. Disunity among the facets of the enterprise will destroy long lasting relationships with clients (Chiguvi, 2018). This means that local government authorities in Zimbabwe should view the CRM as a system to ensure the success of CRM Strategy.

Keramati, et al., (2011); Varajão, et al., (2013) posited that parastatals need to be citizen centric and adopt responsive leadership. This infers that, the implementations of the CRM Strategy in local authorities need to be customer oriented. Varajão (2013) affirmed that local authorities must meet customers’ expectations at the right time. To accomplish this, latest technology must be employed to ensure timeous instant communication. Finnegan and Currie (2010) also indicates that there is proof that many organizations find it difficult to operationalize the CRM Strategy. Many researchers have attempted to identify elements and Critical Success Factors (CSFs) of a CRM but there are few studies in the area of the CRM in the local government authorities. Moreover, there are variations in the results that have been obtained in previous studies. Therefore, this study aims to pursue and identify critical success factors appropriate for the local authorities in Zimbabwe.

Research Methodology

Causal quantitative research design and approach were used in the study. A structured questionnaire was used to collect data from 210 respondents. Various test was done before the formulation of the CRM Strategy model for local authorities in Zimbabwe. Regression and Pearson correlation study were employed to identify critical success factors for CRM Strategy success of the study. The results have been quantitatively presented in the form of graphs, and tables.

Data Results

In this study, the researchers were testing the relationship between critical success factors and the success of the CRM Strategy as displayed in Table 1 The overall results in the regression model summary indicate that there is a relationship between critical success factors and CRM Strategy in the local government authorities in Zimbabwe. Detailed analysis of each predictor and its relationship on the success of the CRM Strategy is shown in Table 4.0 and interpreted accordingly.

Due Diligence

Due diligence (DDT) is significantly and positively related to the success of the CRM Strategy (CRMSST). Table 4.0 shows that β=0.834; t=15.953; p<0.05. This result demonstrates that the local government authorities that highly consider due diligence as a factor critical for the achievement of the CRM Strategy are likely to be successful in their operations. It infers that due diligence is significant and should be considered seriously, as it accounts for 83, 4% variation in CRM Strategy success. Durbin-Waston value of 1.791 also corroborates the assertion espoused above. Tolerance level and Variance Inflation Factor level of 1.000 also demonstrate lack of fulfillment of the Multi collinearity assumptions in this empirical study in Zimbabwe. Therefore, hypothesis one (H1) is supported in this study.

H1: Due diligence (DDT) is positively linked to customer relationship management Strategy success in the local government authorities in Zimbabwe.

Strategy Focus and Alignment

Strategy Focus and Alignment is significantly and positively related to the success of the CRM Strategy (β=0.895, t=21.164, p<0.05). This demonstrates that council strategies need to be aligned in the CRM Strategy of the local government authorities in Zimbabwe. Failure to do this will result in CRM Strategy failure in the local government authorities in Zimbabwe. Tolerance level and Variance Inflation Factor level of 1.000 also demonstrate lack of the fulfillment of Multi collinearity assumptions in this empirical study in Zimbabwe. Durbin-Waston value of 2.675 also validates the assertion espoused above. Therefore, hypothesis two (H2) is supported in this study.

H2: Strategy Focus and Alignment (SFAT) is positively linked to customer relationship management Strategy success in the local government authorities in Zimbabwe

Customer Focus

Customer Focus is significant and positively linked to the success of the CRM Strategy (β=.940, t=28.929, p<0.05). This reveals that customer centricism is vital in the success of the CRM Strategy. The local government authorities must understand customers’ requirements and incorporate their voice in the CRM Strategy. This implies that without clear customer focus CRM Strategy will fail in the local government authorities in Zimbabwe. The researcher has observed that the local government authorities in Zimbabwe are not customer centric due to poor customer service delivery. Tolerance level and Variance Inflation Factor level of 1.000 also demonstrates lack of the fulfillment of Multi collinearity assumptions in this empirical study in Zimbabwe. Durbin-Waston value of 3.025 also authenticates the assertion espoused above. Therefore, hypothesis three (H3) is supported in this study.

H3: Customer Focus (CFT) is positively linked to customer relationship management Strategy success in the local government authorities in Zimbabwe

Change Management

Change management is significantly and positively linked to the success of the CRM Strategy (β=0.974, t=45.576, p<0.05). The study findings revealed that change management is one of the major factors of CRM Strategy in the local government authorities, as it accounts for 97, 4% variation in the success of the CRM Strategy in Zimbabwe. Tolerance level and Variance Inflation Factor level of 1.000 also establish lack of the fulfillment of the Multicollinearity assumptions in this empirical study in Zimbabwe. Durbin-Waston value of 2.827 similarly validates the assertion espoused above. Therefore, hypothesis four (H4) is supported in this study.

H4: Change Management (CHMT) is positively linked to customer relationship management Strategy success in the local government authorities in Zimbabwe

Implementation Approach

Implementation Approach is significantly and positively linked to the success of the CRM Strategy (β=0.896, t=21.233, p<0.05). This study found out that without a clear implementation approach, the CRM Strategy will not be successful in the local government authorities in Zimbabwe. The Tolerance level and Variance Inflation Factor level of 1.000 also demonstrate lack of fulfillment of the Multi collinearity assumptions in this empirical study in Zimbabwe. Durbin-Waston value of 2.224 also validates the assertion espoused above. Therefore, hypothesis five (H5) is supported in this study.

H5: Implementation Approach (IMPAT) is positively linked to customer relationship management Strategy success in the local government authorities in Zimbabwe

Metrics

Metrics is significantly and positively concomitant to the success of the CRM Strategy (β=0.927, t=26.071, p<0.05). The result demonstrates that good metrics improve the success of the CRM Strategy and also Key Performance Indicators (KPI’s) must be in place to measure CRM success. Tolerance level and Variance Inflation Factor level of 1.000 also demonstrate lack of fulfillment of the Multi collinearity assumptions in this empirical study in Zimbabwe. Durbin-Waston value of 1.241 also corroborates the assertion espoused above. Therefore, hypothesis six (H6) is supported in this study.

H6: Metrics (MET) is positively linked to customer relationship management Strategy success in the local government authorities in Zimbabwe.

Implementation Strategy

Implementation Strategy is significantly and positively related to the success of the CRM Strategy (β=0.916, t=24.102, p<0.05). The result surmises that the right implementation approach will increase the success of the CRM Strategy in the local the government authorities. The researchers have observed that many key stakeholders are not attending council meetings due to lack of faith and confidence in the local government authorities in Zimbabwe. This challenge also led to the failure to implement the CRM Strategy. The Tolerance level and Variance Inflation Factor level of 1.000 also demonstrates lack of fulfillment of the Multi collinearity assumptions in this empirical study in Zimbabwe. Durbin-Waston value of 2.334 also corroborates the assertion espoused above. Therefore, hypothesis seven (H7) is supported in this study.

H7: Implementation Strategy (IMPS) is positively linked to customer relationship management Strategy success in the local government authorities in Zimbabwe

Buy-in and Adoption

Buy-in and Adoption is less significantly and positively linked to the success of the CRM Strategy but that was not as strong as other factors of that influenced the success of the CRM Strategy (β=0.260, t=2.832, p<0.05). The contribution of this critical success factor is below average although it is positively linked to the success of the CRM Strategy. This infers that the council employees are lowly motivated to participate actively in the success of the CRM Strategy in Zimbabwe. The Tolerance level and Variance Inflation Factor level of 1.000 also demonstrates lack of the fulfillment of the Multi collinearity assumptions in this empirical study in Zimbabwe. Durbin-Waston value of 3.156 further corroborates the assertion espoused above. Therefore, hypothesis eight (H8) is supported in this study.

H8: Buy-in and Adoption (BIADT) is less positively linked to customer relationship management Strategy success in the local government authorities in Zimbabwe

Project Management

Project Management is significantly and positively related to the success of the CRM Strategy (β=0.913, t=23.648, p<0.05). This means that the local government authorities in Zimbabwe would appreciate the efficacy of the project management orientation and enjoy the success of the CRM Strategy. The Tolerance level and Variance Inflation Factor level of 1.000 also demonstrates lack of fulfillment of the Multi collinearity assumptions in this empirical study in Zimbabwe. Durbin-Waston value of 2.608 also confirms the assertion espoused above. Therefore, hypothesis nine (H9) is supported in this study.

H9: Project Management (PMT) is positively linked to customer relationship management Strategy success in the local government authorities in Zimbabw.

Process Design

On average, Process Design is significantly and positively connected to the success of the success of the CRM Strategy (β=0.557, t=7.057, p<0.05). This means that for the CRM Strategy to be successful; the CRM processes must be customer centric and user friendly. The Tolerance level and Variance Inflation Factor level of 1.000 also demonstrates lack of fulfillment of the Multi collinearity assumptions as found in this empirical study about Zimbabwe. Durbin-Waston value of 3.164 also corroborates the assertion espoused above. Therefore, the hypothesis ten (H10) is supported in this study.

H10: Process Design (PDT) is averagely positively linked to customer relationship management Strategy success in the local government authorities in Zimbabwe

In a nutshell, the researchers confirm that all the ten CSFs are significant and positively linked to the success of the CRM Strategy in local authorities as depicted in table 2.

Service Quality

The success of the CRM Strategy is significantly and positively linked to improved service quality in the local government authorities in Zimbabwe (β=0.756, t=16.130, p<0.05) and the significance level is 0.000. This undoubtedly reveals that the local government authorities that engage in the effective success of the CRM Strategy must recognize the value of service quality in their operational and strategic performance. Therefore, hypothesis eleven (H11) is supported in this study.

H11: The success of the CRM Strategy increases service quality in the local government authorities in Zimbabwe

Costs

The success of the CRM Strategy is negatively linked to reduction of cost in the local government authorities in Zimbabwe (β=-0.037, t=-514, p<0.02) and the level of significance test is 0.608. The result reveals that there is no substantial association between the success of the CRM Strategy and cost as evidenced by (β=-0.037, t=-0.514). This might have contributed to poor cost control measures in the local government authorities in Zimbabwe. Therefore, hypothesis twelve (H12) is not buttressed in this study.

H12: The success of the CRM Strategy reduces costs in the local government authorities in Zimbabwe

Customer Satisfaction

The success of the CRM Strategy is significantly and positively related to customer satisfaction in the local government authorities in Zimbabwe (β=0.788, t=17.893, p<0.05) and the significance level is 0.000. This implies that the local government authorities that engage in the success of the CRM Strategy will enjoy increased customer satisfaction in their customer value-driven chain system. Therefore, hypothesis thirteen (H13) is supported in this study.

H13: The success of the CRM Strategy increases customer satisfaction in the local government authorities in Zimbabwe

Customer Loyalty and Trust

The success of the CRM Strategy is significantly and positively linked to customer loyalty and trust in the local government authorities in Zimbabwe (β=0.866, t=24.151, p<0.05) at the 0.000 significance level. The result demonstrates that the local government authorities will enjoy greater customer loyalty and trust has high chance of contributing success of the CRM Strategy in their operational and strategic performance. Therefore, hypothesis fourteen (H14) is supported in this study.

H14: The success of the CRM Strategy increases customer loyalty and trust in the local government authorities in Zimbabwe.

As shows in Figure 1.

Figure 1: CRM Critical Success Factors in Local Government Authorities

Contribution of the Study to New Knowledge

The study has contributed to CRM literature especially in the local government authorities. The study provides critical success factors needed for CRM Strategy success in the local government authorities. The study further indicated that a successful CRM Strategy contributes to increased customer loyalty and trust, client gratification and promotes excellent service delivery. The study will help and guide local council management to develop appropriate CRM strategies will help to acquire, develop and retain clients.

Conclusion and Recommendations

The study results revealed that CRM Strategy victory is decided by how it is implemented by the local government authorities. This study found that by providing a service that appeals to the Council’s customers, relationship traits such as loyalty and trust, customer satisfaction and service quality are supported. Good mutual relationship enables the stakeholders to view the local government authorities as customer centric institutions. Metrics is a vital factor towards the triumph of the CRM Strategy. This study found that the local government authorities should have a good metrics in place in order to have got high chance of success in their CRM strategies. The researcher discovered that many the local government authorities in Zimbabwe are keeping large data but they do not have good performance audits techniques to measure the attainment of the CRM Strategy. The research study also found that the local government authorities in Zimbabwe are operating with limited resources and consequently they are often under great pressures that sometimes befuddle them from giving care to their relationships with strategic stakeholders. To survive and gain competitive advantage the local government authorities need to develop right strategies and maintain long lasting relationships with stakeholders.

References

1. Abu Bakar, N.B., Saleh, Z., & Mohamad, M.H.S. (2011). Enhancing Malaysian public sector transparency and accountability: Lessons and issues. European journal of economics, finance and administrative sciences, 31, 133-145.
2. Akinwande, M.O., Dikko, H.G., & Samson, A. (2015). Variance inflation factor: As a condition for the inclusion of suppressor variable (s) in regression analysis. Open Journal of Statistics, 5(7), 754.
3. Baran, R., Galka, R.J., & Prof Strunk, D. (2008). Marketing strategy and CRM. Principles of customer relationship management, 317-323.
4. Beasty, C. (2005). 11 ways to ensure CRM success. CRM Magazine, 9, 30-33.
5. Carter, L., & Weerakkody, V. (2008). E-government adoption: A cultural comparison. Information systems frontiers, 10(4), 473-482.
6. Chang, W., Park, J.E., & Chaiy, S. (2010). How does CRM technology transform into organizational performance? A mediating role of marketing capability. Journal of Business Research, 63(8), 849-855.
7. Chinje, N.B. (2014). Customer Relationship Management (CRM) implementation within the banking and mobile telephony sectors of Nigeria and South Africa (Doctoral dissertation).
8. Chiguvi, D., Tadu, R., & Ngwenya, M. (2018). Meta-analysis in customer relationship management strategy in the local government authorities. Journal of Applied Economics and Finance, 6(4), 72-84.
9. Duque, J., Varajão, J., Vitor, F., & Dominguez, C. (2013). Implementation of CRM systems in Portuguese municipalities. The local Government Studies, 39(6), 878-894.
10. Eberhardt, C. (2001). A CRM starter pack: Strategic steps to success. CRM Magazine. Retrieved
11. Egan, J. (2008). Relationship marketing: Exploring relational strategies in marketing. Pearson education.
12. Finnegan, D.J., & Currie, W.L. (2010). A multi-layered approach to CRM implementation: An integration perspective. European Management Journal, 28(2), 153-167.
13. Fisher, C.D., & To, M.L. (2012). Using experience sampling methodology in organizational behavior. Journal of Organizational Behavior, 33(7), 865-877.
14. Ganeshram, R., & Myron, D. (2002). The truth about CRM success & failure. CRM Magazine. (Accessed: on 10 February 2016)
15. Gupta, S., & Zeithaml, V. (2006). Customer metrics and their impact on financial performance. Marketing science, 25(6), 718-739.
16. Hoyle, R.H. (1995). Structural equation modeling: Concepts, issues, and applications. Sage.
17. Hussain, R., Al Nasser, A., & Hussain, Y.K. (2015). Service quality and customer satisfaction of a UAE-based airline: An empirical investigation. Journal of Air Transport Management, 42, 167-175.
18. Jaiyeoba, O.O. (2013). Revisiting the psychometric properties of market orientation framework in an emerging economy: A case-study of Botswana’s small service firms. Business and Economic Research, 3(2), 236.
19. Jonga, W. (2014. Local government authorities in Zimbabwe and associated challenges: Sythesis and Antithesis. Journal of Humanities and Social Sciences, 2(24),117-135.
20. Keramati, A., Saremi, M.S., & Afshari–Mofrad, M. (2011). Citizen relationship management critical success factors: An empirical study of municipality of Tehran. International Journal of Electronic Governance, 4(4), 322-347.
21. King, S.F. (2007). Citizens as customers: Exploring the future of CRM in UK the local government. Government Information Quarterly, 24(1), 47-63.
22. Kurebwa, J. (2015). A review of rural the local government system in Zimbabwe from 1980 to 2014. The Guilford Press.
23. Maleki, M., & Anand, D., (2008). The critical success factors in Customer Relationship Management (CRM)(ERP) Implementation. Journal of Marketing & Communication, 4(2).
24. Mendoza, L.E., Marius, A., Pérez, M., & Grimán, A.C., 2007. Critical success factors for a customer relationship management Strategy. Information and software technology, 49(8), 913-945.
25. Moreno, A.G., & Malendez, A.P. (2011). Analysing the impact of knowledge management on CRM success: The mediating effects of organizational factors. International Journal of Information Management, 31, 437 – 444.
26. Rababah, K. (2013). Implementation methodology of Customer Relationship Management (CRM) systems: Towards developing successful principles and guidelines. Academic Research International, 4(6), 551.
27. Roberts-Lombard, M., & du Plessis, L. (2012). Customer Relationship Management (CRM) in a South African service environment: An exploratory study. African Journal of Marketing Management, 4(4), 152-165.
28. Taghipoor, N. (2013). Investigation the effectiveness of customer relationship management factors in Isfahan tourism and travel agencies. International Journal of Management Academy, 1(2), 96-101.
29. Top reasons for CRM success. (2009). Retrieved March 23, 2009, from http://www.CRM-resources.net/CRM-Software-Success.php(Accessed: on 10 May 2016)
30. Top reasons for failure. (2009). Retrieved March 23, 2009, from http://www.CRM-resources.net/CRM-Software-Failure.php(Accessed: on 10 May 2016)
31. Urban Council Association of Zimbabwe, “Strategic Business Plan 2015 – 2018”, Harare, 2015, (Unpublished report)
32. Vazifehdust, H., Shahnavazi, A., Jourshari, M.R.T., & Fataneh, S.S. (2012). Investigation critical success factors of customer relationship management implementation. World Applied Sciences Journal, 18(8), 1052-1064.
33. Varajão, J., & Cruz-Cunha, M.M., (2013). Using AHP and the IPMA competence baseline in the project managers selection process. International Journal of Production Research, 51(11), 3342-3354.
34. Zhou, G. and Chilunjika, A. 2013. The Challenges of Self-Financing The local in the Authorities The Case of Zimbabwe. International Journal of Humanities and Social Science, 3(11), 233-245.
35. Zimbabwe National Statistics Agency (ZIMSTAT). (2014). Population Census National Report. Harare, Zimbabwe: ZIMSTAT.
36. Zineldin, M. (2006). The royalty of loyalty: CRM, quality and retention. Journal of consumer marketing, 23(7), 430-437.