Customer perceptions on Customer Relationship Management (CRM) and its possible influence on Revenue Management (RM) at a selected water board in South Africa

Abstract

The primary activity of water boards is to provide water services (bulk portable, and bulk wastewater) to other water services institutions within its respective service areas. They may perform other activities under conditions set out in the Water Services Act of 1997. Water boards' revenues come from the municipalities they deliver services to. Not all municipalities have been paying for the services delivered to them, which led to the aim of this study being to gauge the perceptions of Water Board X and Water Board X's customers of selected Customer Relationship Management (CRM) factors (service quality, customer involvement, customer value, information technology, and management commitment) that may possibly influence Revenue Management (RM). This could possibly assist Water Board X in the future to improve its revenue and debt collection. This thesis employed an interpretivist qualitative research methodology to explore its research aims and objectives. Open-ended semi-structured interviews were conducted with thirteen participants from Water Board X and four municipalities which Water Board X provides services. The data collected from the interviews were analysed manually through thematic analysis. The outcome of the interviews noted that an organisation that delivered high levels of service quality to its customers, could possibly improve its RM as the customers are of the opinion that their needs and requirements have been met and would be willing to pay for the services rendered. It was furthermore found that an organisation that involves its customers could possibly improve its RM as the organisation constantly communicates with its customers during, for example, the different stages of a project to ensure that the organisation does not deliver a project that does not meet the customers' requirements at the end of the project life cycle. In addition the use of information technology played a pivotal in an organisation as the use of information technology assisted to develop effective methods in customer relationship management such as, data management, improving communication within the organisation, and with the customers, and the decision making. Furthermore, this study suggested the importance for an organisation to add value to the services that they deliver and for an organisation's management to be committed to ensure that their customers' expectations and requirements are met. The findings of the study suggest that CRM factors (service quality, customer involvement, customer value, information technology, and management commitment) could influence RM, and it is suggested that Water Board X adopts CRM strategies accordingly to improve its RM. Some of these strategies include adopting a coherent and sustainable revenue strategy through the use of appropriate tariff structures that are simple, equitable, affordable, financially sustainable, and transparent for all; showing commitment by prioritising water loss management and by properly auditing water supplies and water treatment revenue while increasing efficiency in supply and revenue recovery as this allowed Water Board X to better serve its customers, improve its financial standing, and allocate funding for water infrastructure upgrades and to adopt technologies that are on the market as these technologies can detect leakages, manage payments, control water flow and transmit data.