RELATIONSHIP MARKETING AS A TOOL FOR GAINING COMPETITIVE EDGE AND PROFITABILITY IN THE BANKING INDUSTRY: AN EMPIRICAL ANALYSIS

This study was carried out to examine how relationship marketing servers as a tool for profitability in banking industry in Nigeria. This study investigated ten (10) commercial licensed banks which were chosen at random from different locations in Lagos State: Zenith Bank, First Bank, United Bank for Africa plc, Access Diamond, Sterling Bank, Heritage Bank, Polaris Bank, Wema Bank, Guarantee Trust Bank and First city monumental plc. The study employed primary data collected in ensuring that valuable data were obtained for the data analysis. A total number of one hundred and twenty (120) copies of questionnaire were administered to staff of the selected banks for which (110) were used for analysis. After cleaning and sorting the copies of the accepted questionnaire they were fed into the statistical package for social science (SPSS). The questionnaire was structured in line with the research objectives, questions and hypothesis of the study. The Pearson product moment correlation coefficient was used to confirm formulated hypotheses. The study found that relationship marketing in Nigeria banks improves the bank’s profitability and that the presence of valuable and high-quality products and services enhances the bank profitability. The study concluded that, banks’ most important assets are the customers and as such, they need to be managed in a manner that will ensure that their expectations are met. The study also recommended that the relation managers and other managers, the staffs in the related departments and other stakeholder involved in matters of the bank’s operations continue with the spirit of understanding the requirements of Relationship Marketing, as well as other issues that governs it.