Investigating the Effect of Customer Relationship Management on Customer Satisfaction of Abuja Electricity Distribution Company PLC, Nigeria

Abstract

The study investigated the effect of Customer Relationship Management (CRM) customer satisfaction using a sample of customers of Abuja Electricity Distribution Company (AEDC). The study was guided by three specific objectives. To achieve these objectives, the study took a quantitative approach using a survey structured questionnaire to collect primary data on each of the variables from 316 staff of AEDC across all its regions and clusters. The demographic data collected was analysed using descriptive statistics in the form of tables and percentages while the null hypotheses were tested using inferential statistics in the form of Structural Equation Modelling (SEM) with Analysis of Movement Structures (AMOS) version 22 software. The findings obtained from the analysis indicated that the model’s R2 was 58%. The results showedthat CRM (Customer knowledge [β =0.171, p-value = 0.048], customer value [β = 0.275, p-value = 0.006], CRM Technology [β = 0.399, p-value = 0.000])has a significant positive effect on customer satisfaction. Therefore, all the three null hypotheses were rejected. The study concluded that CRM has a significant positive effect on customer satisfaction and recommended among others that AEDC’s management should tailor CRM strategies towards satisfying customers which invariably boost company's performance.