Identify and Ranking the Factors Affecting Recruitment and Retention of Corporate Customers within Banking System

Customers are considered as key factor in banks’ activities. Recruitment and retention of corporate customers pave the way for continuous growth and development of banks. Hence, today recruitment and retention of corporate customers pave the way to realize all aims, strategies and resources at successful banks. This will not be possible without examination of customers’ demands and awareness from factors affecting recruitment and retention of corporate customers. The present paper considers this point which factors affect recruitment and retention of corporate customers in banking system and how is the priority given to these factors? The present paper is an applied research type, for which a descriptive survey has been used for data collection. The statistical population consists of corporate customers at branches of Bank Melli-city of Bushehr selected using simple random sampling method. The questionnaire has been used as data collection instrument, that the validity and reliability of it has been confirmed. Using exploratory factor analysis, eight factors have been recognized as factors affecting recruitment and retention of corporate customers. The results of this study indicated that reputation and security are the most important factors affecting recruitment and retention of corporate customers, yet diversity at banking services is the least important factor affecting recruitment and retention of corporate customers.


INTRODUCTION
Today, recruitment and retention of corporate customers are the most important factors at any service and production organization. Recruitment and retention of corporate customers is an issue influenced of various conditions and factors inside and outside the organization, that their importance concerning the type of organization is different (Ssoukstos dna Rand, 2006). Banks are the most important sectors at any country's economy, regarded as the institutions in which customers play an important role for survival and development. Indeed, it can say that customer is basis and origin of banking system. A customer at bank equivalents to an asset (Shahraki et al., 2011). In modern banking, cost of loss of a customer implies loss of the benefits relating to the services that the customer needs them in his life. Recruitment and retention of corporate customers pave the way for continuous growth and development of banks. Hence, today the issue of customer-orientation and recruitment and retention of corporate customers have been considered as the most important factors to realize all aims, strategies and resources at successful banks (Esmaeilpour and Sayadi, 2014). A common aspect between us and institutions regardless of deep differences lies on a fact that we are all customers (Schiffmen et al., 2010). However, various studies have been conducted on customer satisfaction with quality of banking services, customer loyalty to bank, recruitment and retention of corporate customers within banks, to date no study has been conducted on the factors affecting recruitment and retention of corporate customers. Institutions likewise humans have various demands at the area of financial and banking services, in order that they purchase various services from institutions, banks and financial and banking services to have a progress at financial and banking services. Organizations develop a big market for institutions and financial and banking entities (Kotler and Armstrong, 2011). All financial and credit institutions provide banking services for organizations. Banks provide a great deal of credit sources for the organizations. Hence, the banks and financial and credit institutions must seek the ways for recruitment and retention of corporate customers. Bank Melli is one of the large state-owned banks that the place of market share of this bank has been jeopardized by expansion of private banks and financial and credit institutions. Managers at Bank Melli, to maintain the place of market share of banking services and to increase their share in banking services of country, must know which factors affect recruitment and retention of corporate customers, in order to provide a better planning for providing financial and credit services for corporate customers.

Review of Theoretical Literature
At any study, recognition of the knowledge status relating to the subject area of research is required, which this helps for problem statement of the research. Further, examination and recognition of literature review connect the research findings to the previous research. Hence, in this section, concepts and theoretical and empirical backgrounds of the research topic are considered.

Who is Customer?
Customer is called to all natural or legal persons (organizations) who are in contact with the organization. A person is called a customer of bank who has an account in the bank or makes a working relationship with the bank and uses the financial services of the bank.

What is an Organization?
In point of view of Turnbull (1994), the organization is called to a group of individuals who follow their aims through coordinating their activities. The organizations are not similar and they can differ in their aims and duties. Any marketer must know that any organization develops from various individuals and groups, and these individuals and groups must work together to achieve aims and mission of organization. These individuals have different personality and motivations and also a different view and approach to problem resolving. Marketers must make an effort to acquire a thorough recognition from corporate purchasers (Morris, 1998).

Who is an Organizational Customer?
Organizational customers is called to legal entities including production, trading and service organizations and public and private profit and nonprofit institutions which serve with a required license and are in contact with the bank and use the bank's financial services (Hutt and speh, 2001).

What is service?
In view of Kotler and Armstrong (2011), service is an activity or benefit which cannot be available to a person, and is supplied by a person to another person, where it has not followed by ownership. Banks supply various financial services such as current accounts, deposit accounts, currency accounts, letter of credit, mortgage payment, interbank funds transfer, investment services, financial advisory services, insurance policies, trust funds and so forth.

Definition of Customer Acquisition
Customer acquisition implies persuading customers, thus it can define customer acquisition as the process of involving the customer to make motivation for more purchase. Indeed, customer acquisition implies causing the individuals' willing to buy in purchase of products (Moghimi and Kimiasi, 2012). In other words, involving the customers in purchase of products is called customer acquisition (Kotler and Armstrong, 2011). Managers and employees working at branches of banks must be well-informed of passing five stages below for the purpose of organization customer acquisition, including: 1-Recognize the potential organizational customers 2-Make effective relationships with customers 3-Persuade organizational customers for involvement in the bank and fulfill financial activities with the bank 4-Sustain effective relationships with organizational customers 5-Make an effort to maintain organizational customers (Tahvildari, 2007).

Factors Affecting Customer Acquisition
All the organizations seek customer acquisition and increase of customer satisfaction. In modern banking, there are a variety of factors which affect customer acquisition. In current age, due to competition between banks over customer acquisition, recognizing these factors is of a great importance (Tahvildari, 2007). Recognizing and determining the extent and type of relationship between these factors and success of banks is of a great importance in customer acquisition (Esmaeilpour, 2003). The studies by Tahvildari (2007), Hadiani and Ahmadpoor (2009); Beshli (2014); Venus and Safaeian (2008); Esmaeilpour and Hosseini (2014) at area of customer acquisition indicate that various variables can provide the areas for natural customer acquisition including: 1-Customer trust 2-Saving time 3-Providing services taking accuracy and speed 4-Efficient manpower 5-Desirability of internal environment of banks 6-Desirability of bank settlements 7-Provide special services 8-Provide advisory services 9-Name and image of bank 10-etc

Definition of customer Retention
In point of view of Bloemer, customer satisfaction and retention refers to a state in which need, expectation and demand of customer are met, and as a result repetition in purchase of good and individuals' trust come to realize. Customer retention requires adjustment of products with their needs and expectations, which this requires full understanding of customers' needs and decision on sustaining on collaboration and relationship with organization and customer. The best approach for customer retention is that such an approach results in a huge satisfaction in the customer, and what is attributed as a value to him must be considered so as to strengthen the customer loyalty to bank (Venus and Safaeian, 2005). Today, marketing strategies have changed within banking industry. In the past, customer acquisition and providing various products has been the main purpose of senior managers at bank, yet today marketing managers at bank seek for customer retention and long-term relationship with their loyal customers, because they have perceived that customer acquisition costs higher than customer retention for the bank (Foo et al., 2008).

Empirical Studies in the Context of Customer Acquisition
With regard to the investigations obtained through academic resources, various studies in the context of factors affecting customer acquisition, customer retention, and customer loyalty have been conducted, that some have been represented as follows: Other studies have shown that in point of view of customers, improving social relationship between customers and employees, positive personal characteristics of employees and supply of favorable services cause increasing bank deposits (Rasoulf et al., 2003). In a similar study by nejad (1999), bank area closeness has been considered as the most important factor in customers' selection, and the factors such as staffs' friendly relationship, favorable loan experience, recommend to a friend and influenced of relatives are considered in the next grade. According to points of view of Jorgensen and Sjøberg (2004), four fundamental factors affect acquisition, retention and satisfaction of individuals including: 1-The main elements of the goods or services, 2-Support services, 3-the process of reform to face the unpleasant experience, 4-special services. Meyer (2008) argues that concurrently with informing consumers about some characteristics of the products, their importance in determining acquisition and retention of customer changes. This information in information goods such as software of internet databases is of importance. Consumer with exploit from characteristics of the product by having more information on them, yet this problem causes affecting the person's satisfactory experiences. Parasurman et al., (1991) referred to this point that the relationship between quality of services and customer acquisition has remained unknown. Watson (2002) states that concept of customers value sets a strong relationship with customer acquisition and retention. Further, Reichheld (1996) believes that what causes customer acquisition is not the same as what causes customer loyalty. According to the findings of research by Finch (2007), companies require development and recognition of customers' expectations at any stage of their work expereince, representation of supportive approaches and exploitation from assessment methods and stimulants for the purpose of customer retention and acquisition. Wellington (1995) has divided elements of customer acquisition, retention and satisfaction to the good, sale, after-sales, place, time and culture. Despite attempts which are made to improve customer acquisition, this factor has remained as the past. This result occurs due to increasing customer's expectations and/or lack of attention to what is required for the person. Measurement of customer acquisition and retention can be an origin for learning and increasing awareness. This approach seeks to find a response to the questions about major factors affecting purchase process, how to evaluate seller's performance against his competitors about each cause of purchase and relative importance of each of components relating to the valuation of customers. Such questions pave the way to provide a checklist of considered values by customers (Danis, 2000). In another study by Sahot (2003), role of factors affecting customer acquisition in banking services has been examined. The results indicated that recognition of customers' behavior and factors affecting increase of quality of e-services have been recognized effective in the process of providing banking services. To increase quality of e-services, the researchers have known attention to several factors: Response time, range of services, customer relationship, and available financial information, ease of use, safety and designing an appropriate graphical environment. Abhiman et al., (2009), with an overview of some branches of big branches of large state-owned banks of India, the factors such as manpower, employees' education level, bank environment, advertisements, governmental laws and regulations, reduction of government interventions in banking affairs have been considered effective in recruitment of people's deposits. In their view, manpower is the most important and effective factor for acquisition of people's deposits. Shoemaker et al., (2007) showed that today most of companies cause customer loyalty by announcing maximum delivery time for their services, and the customers will be satisfied if the delivery time of their services be less than their expectations. Furthermore, service companies increasingly compete based on market share at the time of providing services. In a study entitled "measurement of modern approaches for providing banking services" by Keralapura (2009), development of communicaiton technologies has been introduced as an important factor in customer retention and acquisition within Malaysia's banking system. In point of view of Wang et al., (2012), high cost for customer acquisition has caused the early stages of the relationship with new customer do not profitable, where the relationship will be profitable at the next stages through reduction of cost by apply loyalty customer. In this regard, to increase customer loyalty, numerous banks have taken step to introduce innovative products and services. Despite efforts to improve customer acquisition in banks, these efforts do not seem that much effective. This result occurs due to increasing customer's expectations and/or lack of banks' attention to what is required for customer. Banks must find out about what causes customer dissatisfaction. Measurement of customer acquisition and retention can be an origin for learning and increase of awareness. This approach seeks to find a response to the questions about major factors affecting purchase process and how to evaluate banks' performance against its competitors (Daniels, 2000).

Research Methodology
The present paper is an applied research type, for which a descriptive survey has been used for data collection. As this study discusses on identifying and ranking the factors affecting recruitment and retention of corporate customers within banking system, thus the statistical population of this study consists of all top managers, financial managers and the experts who have the right to sign financial documents of organizations, institutions and companies with a bank account in branches of bank Mellicity of Bushehr. With regard to big statistical population of research and lack of researcher's ability in formulating a statistical population, the simple random sampling method was used in this research. Cochran's Formula for unlimited population was used to determine sample size. In this study, error level, confidence level and coefficient of variation in characteristics under study have been in turn considered equal to 7%, 95% and 50%. Given the percents above, the sample size taken equal to 196. To increase accuracy at sampling, an attempt is made to increase the sample size to 231. The questionnaire has been used as data collection instrument. The research questionnaire has been formulated combining the literature review under study and interview with a number of professors and a majority of managers and experts of corporate customers within city of Bushehr. The questionnaire consists of 68 questions, for which Likret spectrum scale was used. To measure validity of questionnaire, content validity ratio was used. Ratio of content validity obtained in this study has been equal to 75%; as minimum amount of ratio of content validity ratio for 15 appraisers or arbitrators must be equal to 49%, thus content validity of this research is in a suitable level. To measure reliability of questionnaire, Cronbach's alpha or internal consistency was used. Cronbach's alpha coefficient calculated for the questionnaire has been equal to 97% which is a very high coefficient, indicating the reliability of research instruments in a very suitable level. To analyze data of research, exploratory factor analysis methods and Kendall's test were used.

The Results
To analyze research data, descriptive statistics were used to analyze demographic variables, and analytic statistics were used to identify latent variables of research (exploratory factor analysis). Table 1 indicates demographic variables of research, which have been analyzed through collecting 231 questionnaires. To identify latent variables in a set of questions, exploratory factor analysis using software SPSS20 was used. To perceive whether research data are suitable for exploratory factor analysis or not, Kaiser-Meyer-Olkin Test and Bartlett's Test were used.
If value of Kaiser-Meyer-Olkin Test be greater than 0.6, it will be acceptable, and the more this value be close to 1, it will be better. The results of these two tests have been shown in table 2.  Table 3 indicates that research items can be transformed to several factors, and these factors define the percent of considered variance. With regard to calculation of the early matrix for the factors, it was specified that 11 factors have equivalangue greater than 1, where this has spanned 69.337% of total variance of variables. According to overview of exploratory factor analysis, factors 9, 10 and 11 have had only once factor loading item, and as each factor must span at least three items in exploratory factor analysis, three factors above were removed from factor analysis. As a result, it can recognize eight factors in process of exploratory factor analysis. To name each factor, it must pay attention to the common characteristics in items relating to the considered factor. With regard to the common characteristics of items relating to each factor, a suitable name concerning concepts of literature review of research was selected for the factors. Figure 1 represents hierarchical model of identified factors. To rank recognized factors, Friedman test was used. This test examined difference of means by comparing mean of ranks among variables. Test-value ranges from 0 to 1, in which values close to 0 indicate less agreement and values close to 1 indicate more agreement on considered variables among respondents. Table 4 indicates statistics of Friedman test. According to results of Friedman test, as test level equals to 0.000 which is less than 0.05, it can say that rank of eight factors differs from each other. Table 5 indicates ranking corporate customer retention and acquisition within branches of Bank Melli-city of Bushehr. Interest rates 4/29 5

Figure 1: Naming recognized factors in the research
As shown in table 5, the third factor (validity and security) with the rank of mean (5.37) has the highest importance grade, and the sixth factor (diversity at banking services) with the rank of mean (3.42) has the least importance grade in viewpoint of managers and experts at companies and organizations within branches of Bank Melli-city of Bushehr concerning recruitment and retention of corporate customers.

Conclusions and Recommendations
All research activities generally are fulfilled to achieve certain results and determine executive and applied approaches. The present study aims to identify and rank the factors affecting recruitment and retention of corporate customers within banking system in branches of Bank Melli-city of Bushehr. In this research, through the literature review under study and interview with a number of professors and a majority of managers and experts of corporate customers within city of Bushehr, 68 items were recognized as important criteria in recruitment and retention of corporate customers, and these items were transformed to eight factors using exploratory factor analysis, that these factors determined 70% of variance of all variables. Then, based on content of items of each factor, a suitable name was selected for each factor. In this section, a discussion on each factor has been represented, and comparison of the results of this research with the results of other studies has been considered, and finally some suggestions have been represented given each factor. The factor "providing special services for corporate customers" is the first factor affecting recruitment and retention of corporate customers. Special services are called to those services which any bank cannot supply them under normal conditions and daily activities, where special services at bank Melli can differentiate it from other banks. Indeed, special services can be attributed as a competitive advantage within bank. The ultimate aim of customers is quick fulfillment of affairs and lack of wasting time as the most important agent of success in current competition, and customers as constituent elements respect technology, speed and technical expertise of banks. What is important to customers is the ability of bank in providing special services. This factor "providing special services for corporate customers "is relevant with the studies by Erabi and Esfandiari (2004); Bansal (2004); Mohammadi (2004); Balinger (2001). Reverence for corporate customers is the second factor affecting recruitment and retention of corporate customers. Today, the organizations which are superior to others in meeting customers' needs and expectations will be more successful at competition arena. In other words, with regard to new philosophy of marketing (customer-orientation), customers have received a particular attention and all problems have been considered in favor of customers. Attention to customer and market is the most notable milestone in banks' activities that was considered besides other implications, providing the infrastructure for growth and development of banks. In today's competitive world, bank Melli must pay a particular attention to the needs, views and complaints of customers about banking services, and must know that bank Melli's policies must be developed based on customers' demands and expectations. In this regard, the factors such as respect customers, appropriate interaction with customers, customer feedback, good bilateral relations with customers, resolving customers' problems and handling their complaints, awareness from customers' satisfaction, high quality and speed at providing services, adjustment between bank Melli's policies and customers' needs, investigation of accuracy of services provided for customers and so forth can help a lot the banks in the context of customer retention. The factor "reverence for corporate customers" is relevant with the studies by Karzabi and Dehghani (2004); Rostami and Biabani (2012);Yavas (2004). Validity and security of bank is the third factor which affects recruitment and retention of corporate customers. Customer's any contact with the bank is considered to build validity and trust in bank. The nature of services available in banking activities is one of the problems which raise special complexities in building security and validity in the bank. Bank Melli requires building and increasing validity in bank and sense of security for its customers in order to fulfill monetary transactions and exchanges. On the other hand, managers and employees of bank play a major role in building validity and security, because their performance and interaction with corporate customers guarantee building and improving validity and security of bank Melli. On the other hand, applying modern technologies with high capabilities including high trust, security and efficiency can play a major role in building sense of security in corporate customers at banks. This factor is relevant with the studies conducted by Sahot (2003); Shokrgozar (2004);Mattson (1992). Efficiency of manpower is the fourth factor affecting recruitment and retention of corporate customers. It is obvious that manpower is the most important capital at any organization including bank Melli. In analysis of this factor, it can say that providing banking services together with how to treat with employees, employees' skill, education status, and managers' and employees' experience is a leading point in this context. Efficiency of manpower must be taken into account in terms of efficiency and effectiveness. Attention to suitable use of facilities and instruments available to provide banking services is required concerning Efficiency of manpower. Further, attention to corporate customers' satisfaction is required concerning effectiveness. If manpower at bank Melli has strengths in both efficiency and effectiveness aspects, it can say that bank Melli has been an efficient workforce, and as a result productivity of manpower will improve. This implies that as most of banking services are provided by manpower, quality of providing service and how the person treats in providing services are generalized to quality of banking services. Hence, behavior, abilities, competencies, skills and employees' performance are the most important factors which affect quality of banking services. Adornment and attitudes of employees and their ability, skill and personality in fulfillment of banking services are the important factors which affect recruitment and retention of corporate customers. Customers due to mutual intimacy and interest to employees of bank Melli or due to respect to them are transformed to permanent customers in bank Melli. Further, hiring experienced employees with strong public relations who have associated academic degrees and experiences is of importance to decrease difference between bank's performance and corporate customers' expectations. This finding is relevant with the studies by Venus & Safaeian (2005), Rasoulf et al., (2003), Sureshchandar et al., (2002) and Anthony and others (2000). The factor "physical and welfare facilities" is the fifth factor which affects recruitment and retention of corporate customers. Physical environment even without any relation with real supply of banking services is a visual stimulant in quality of banking services. With regard to increasing trend in competition between the banks for recruitment and retention of their corporate customers, providing banking services in an area with standard physical, mental and social indicators is a determinant in recruitment and retention of corporate customers. Access to facilities, security and comfort at branches of bank Melli is of the qualities which the customers seek them continuously. Interior space at bank, a suitable parking lot around bank, clean area at bank, rest area inside bank, and heating and cooling systems are the factors which affect corporate customers to refer to bank Melli. Facades of buildings, landscapes, vehicles, furniture, equipment, signs, printed matter and other visible signs, the possibility to use ATM and suitable access to necessary requirements are all tangible evidences from quality of banking services. It should be noted that bank Melli must improve physical evidences periodically, because this will have a deep effect on customers' impressions in bank Melli. This finding is relevant with the findings of studies by Venus & and Safaeian (2005); Klaus and Mary (2006). Diversity in banking services is the sixth factor which affects recruitment and retention of corporate customers. Today, banks are required inducing massive resources to themselves to increase quality of their services and increase liquidity at bank by increasing the number of options for providing services. It is obvious that banks currently act in a competitive space where the diversity of services keeps increasing in this sector. Modern banking instruments can cause increase of quality within banking services. Supply of products and services which meet customers' needs is an important approach that might be used in strengthening customers' relations and increasing their loyalty. These needs can be identified by a study on experiences of customers' exchanges which exist in bank. Today, most of the banks in developed countries provide various banking services including various facilities, benefits and payment types, types of credit, credit cards, smart credit cards, investment services, financial counseling services, Insurance policy, electronic funds transfer , foreign exchange transactions, Funding for international trade. Hence, with regard to the competitive environment which banks face it, diversification of services can affect meeting the customers' needs and increasing quality of banking services. Modern technologies have also helped the banks to provide their services with lower costs and easier ways including ATMs, POS, mobile banking, phone banking and internet banking for their corporate customers, in order to increase satisfaction level of them through contact with Bank Melli-city of Bushehr. This finding is relevant with the research by Venus and Safaeian (2005) and Fu et al., (2008). Building trust is the seventh factor which affects recruitment and retention of corporate customers. Managers' and employees' clear relationship with their corporate customers is one of the most important factors which can affect building trust in corporate customers. Honest communication and collaboration can be the origin for building trust from bank activities and how to provide services. On the other hand, attention to customers' time can be effective for building trust. Because, in most of cases, corporate customers' long staying at bank for administrative affairs that can be fulfilled at the least time, has caused them to be dishonest to other bank activities. Continuous presence of managers and employees of bank at corporate customers' work area can cause them to hear their needs, expectations and demands, mentioned that Continuous presence of managers and employees is the most important factor which affects building trust in corporate customers. Getting corporate customers' feedback about quality of providing services is accounted as one of the important feedbacks at information system of banking system through which it can take essential steps for improvement and enhancement of bank activities; this comes to realize by building trust in corporate customers at bank, because in this way managers at bank can take step to provide facilities for improvement of all affairs concerning actual concerns and expectations of corporate customers. This finding is relevant with the findings of research by Karatp and others (2005); Bahia and Nantl (2000); Parasuraman et al., (1988). Interest rates are the eighth factor which affects recruitment and retention of corporate customers. To justify this factor as the eighth factor which affects recruitment and retention of corporate customers, it can say that deciding upon banking facilities and interest rates is one of the important variables in banking activities. Theoretical and empirical studies indicate that any change at interest rates affects extent of