CRM in the Banking Industry in Bahrain

Abstract

This empirical study investigated relationship marketing: customer relationships management as a strategy to win back high-net-worth individuals’ (HNWIs) trust and confidence in the context of the banking industry in Bahrain. During the last decade, Bahrain has faced a series of continuous events affecting its economy in general and the banking industry in particular, such as the global financial crisis, the debt crisis in Europe, the Arab Spring and a socio-political uprising in Bahrain, a decline in oil and gas prices, and, most recently, the coronavirus (Covid-19). As a result, HNWIs have become very anxious about where to invest their money – most of them ended up freezing their cash reserves and avoiding investment. The research examined the extant literature, in particular, six fields of study: 1) relationship marketing 2); customer relationship management (CRM); 3) CRM activities; 4) CRM challenges; 5) HNWIs’ investment behaviours; 6) and HNWIs’ trust and confidence. The review found a lack of research into the extant literature, particularly in Bahrain about 1) CRM: CRM’s meaning, CRM activities and CRM challenges; and 2) HNWIs’ investment behaviours and how to win back their trust and confidence in the context of the banking industry in Bahrain. The exploratory research employed an interpretive, direct qualitative methodology, using vignettes as in-depth semi-structured interviews with ten key banks in Bahrain. The research objective explored the effects of CRM adoption on HNWIs’ investment behaviour as well as winning their trust and confidence in the banking sector in Bahrain.The key findings and conclusions from the empirical research are subsequently presented.<br/