An investigation on the effects of relationship marketing on performance of private security companies: the case of BM security in Nairobi

Abstract

The overall objective of this research is to investigate the effects of relationship marketing on performance of private security companies. A case of BM Security in Nairobi was used for this study to investigate the effects of RM on the company's performance. Relationship Marketing involves activities that are directed towards establishing, developing, and maintaining successful relationships. Relationships between customers and business firms have been encouraged as successful business practices worldwide. Building relationships with customers is necessary for a company's survival and growth in a competitive market. Therefore, companies should strive to attract customers, satisfy them and retain them so as to make profit from them. The study used descriptive design and being a case study it provided full context of the study objective. The target population was 144 management staff from four business divisions of BM. A stratified simple random sampling technique was used to obtain a study population of 43 respondents from the total population of 144. The researcher used Questionnaires as the data collection tool. The questionnaires were administered to the whole sample population by drop and pick method. Data collected was analyzed using inferential statistics of ANOV A and F-distribution. The study established that RM has positive effects on performance of BM Security Services Ltd. The findings indicated that as a result of RM activities the number of new customers increased as per 74.5% respondents' indicated, and that the RM programs impacted positively on the firm's revenues and profitability. Good communication systems especially use of IT in collecting feedback and addressing customer complaints were found to be vital in enhancing customer satisfaction and retention. However, the research established that majority of the respondents were neutral on sensitive issues like employee satisfaction in their workstations. The objectives of the study were fully realized and the researcher was able to confirm findings of previous studies and RM theorist that indeed greater customer satisfaction, higher rate of customer retention, greater profitability and bigger market share were effects of implementation of relationship marketing program. This study recommends that BM management should increase the employee's satisfaction and improve customer complaints analysis and response while embracing emerging IT trends. This study suggests areas of further research in effects of relationship marketing on performance of other service companies to compare the findings and check for correlations and deviations. A research investigating the role of relationship marketing on performance in organizations has been suggested to point out key concentration when running an RM program. Lastly, a study to establish how relationship marketing affects customer satisfaction and retention has also been suggested.