Effect of customer relationship management on Performance of health care providers in Homa-bay County, Kenya

Abstract

The consumer concept, customer orientation and interaction with customers are new areas of interest for many public run organizations like health care, yet the understanding of customer orientation, customer focus and customer satisfaction to enhance effective and efficient service delivery in health care industry in Homa Bay County is not known, given lack of prior studies in this field, which has prompted this study to be carried out. The main purpose of research study is to examine effect of customer relationship management on performance of health care providers in Homa-Bay County. Specific objectives were to examine effect of customer orientation, customer focus and customer satisfaction on performance of health care providers. using a descriptive research design. A target population of 44 staff from health care providers in Homa-Bay County were used with a sample size of 40 staffs, who were interviewed using questionnaires; the questionnaire was tested for reliability using Cronbach Alpha method of reliability test, reliability coefficient of (.926) and content validity index (CVI) had a coefficient of (0.869). A conceptual framework has been used to determine the effect of various dimensions: customer orientation; customer focus; and customer satisfaction on organizational performance. These theories guided the study: internal marketing theory; service marketing theory and service quality theory, Descriptive statistics and regression analysis were used, results for effect of customer orientation on organizational performance, indicate customer orientation (CO) has a mean M=6.18 (SD=.43) and (B=.228, p =.021), results for effect of customer focus on organizational performance, indicates that customer focus, has a mean M= 5.98 (SD = .18) and (B=-.059, p =.812), results for effect of customer satisfaction on organizational performance, indicates that customer satisfaction has a mean M=5.9 (SD=.28) and (B=.725, p =.000), customer orientation, customer focus and customer satisfaction together predicted 44.8 percent of the observed variance in organizational performance of health care providers in Homa Bay County, a significant model fitting (F=9.73; p=.000). This implies that public hospital can enhance customer satisfaction with an improvement on organizational performance. Based on findings, the study recommends that public hospitals should improve on their Customer Relationship Management dimensions, in particular customer satisfaction. Further research should be undertaken on effect of Customer Relationship Management dimensions on organizational performance in private hospitals. The findings of this study will add to the body of knowledge by building a profound foundation upon which other studies could be anchored on.