Examining the role of organisational learning in customer relations management : a case study of microfinance institutions in the Central business district of Lusaka, Zambia.
The purpose of this study was to examine the role of organisational learning in customer relations management, using a case study of Microfinance Institutions in the central business district of Lusaka, Zambia. The study was prompted by the problem of a continuous rise in customer complaints. This raised the question of whether the Microfinance institutions are repeating the same mistakes over and over again, without learning from them or maybe they are failing to adjust to their customer’s needs and expectations. This study aimed to fill a gap in existing research by examining the role of organisational learning in customer relations management in Microfinance Institutions in the CBD of Lusaka, Zambia. The findings can inform policy-making and help MFIs improve their customer relations management, enhancing their sustainability. The study sought to ascertain the mistakes in handling customer complaints by Microfinance Institutions in the CBD of Lusaka, Zambia. It also sought to establish the role played by organisational learning in customer relations management in Microfinance Institutions in the CBD of Lusaka, Zambia. Lastly, the study sought to determine measures that Microfinance Institutions can implement to learn from their mistakes in customer relations management. The Organisational Learning Theory was the theoretical framework that guided the study. The study took a qualitative research approach, where data was gathered through semi-structured interviews and open-ended questionnaires. Semi-structured interviews were used to collect data from the Marketing Managers while open-ended questionnaires were used to gather data from the customers of MFIs. The target population was the 30 Marketing managers in MFIs in Lusaka, Zambia as well as an estimated 200 Customers of MFIs. A sample of 70 participants was used to participate in the study using the Taro Yamane method for sample size calculation. Quota sampling was used to select the elements in the sample. The gathered data was analysed using thematic analysis. The study found that the mistakes made in handling customer complaints include a lack of adequate complaint handling processes, poor communication and responsiveness, lack of empathy and understanding, ineffective complaint resolution, as well as inadequate feedback and escalation mechanisms. The study also found that the role played by organisational learning in customer relations management includes knowledge acquisition and sharing, continuous improvement and adaptation, customer feedback integration, employee development, and training, as well as knowledge application and innovation. The study also found that the measures that MFIs in Zambia can implement to learn from their mistakes in customer relations management include conducting post-mortem analyses, establishing a feedback loop, implementing continuous training and development programs, conducting regular performance reviews, as well as encouraging a culture of learning and improvement. The study recommended that MFIs should promote a culture of learning by fostering cross-departmental collaboration and continuous improvement in customer relations management practices. Post-mortem analyses after customer-related incidents can help identify factors contributing to mistakes and develop strategies to prevent future incidents. Active customer feedback can be used to identify areas for improvement. Prioritising employee development and training programs can enhance customer service and relations skills. Future studies should explore leadership's role in promoting organisational learning and customer satisfaction.
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