Impact of CRM on Customer Loyalty Report

Running Head: IMPACT OF CRM ON CUSTOMER LOYALTY 0
Impact of CRM
on Customer
Loyalty
Report
Student name

IMPACT OF CRM ON CUSTOMER LOYALTY 1
Abstract
Customer relationship management (CRM) refers to the approach of increasing
interaction with potential as well as existing customers. It leads in providing information
about the history of the company with the consumers because of enhancing the relationship
with other business. This supports the industry to focus on retaining customers and leads in
development of the industry. The aim of the study is to understand the “Impact of customer
relationship management on customer loyalty in the Jordanian telecommunication sector-
Qualitative study”. The data collection is done through secondary method by gathering
opinions and findings of different authors. From the analysis it is revealed that there is direct
relationship between CRM and customer satisfaction because of increase the capability of the
company to manage the overall structure, activities. In Jordan telecom industry increase
interaction with the customers and provide services in timely manner according to their
demands. Further it also results in managing the important data and orders of the customers in
the telecommunication sector of Jordan.

IMPACT OF CRM ON CUSTOMER LOYALTY 2
Contents
Introduction................................................................................................................................3
Research objective.....................................................................................................................3
Literature Review.......................................................................................................................3
The study conceptual framework and hypotheses formulation..................................................4
The main hypothesis..............................................................................................................5
Impact of Customer Relationship Management on Customer Loyalty in the Jordanian
Telecommunication Sector.........................................................................................................7
Service Level Agreement (SLA) strategies:..........................................................................8
Reduced operating costs:....................................................................................................9
Enhanced productivity:......................................................................................................9
Improved customer satisfaction:........................................................................................9
Lower risk of customer defection:.....................................................................................9
Implementation of Telecom Cost Management (TCM) service............................................9
Contract management.......................................................................................................10
Invoice processing............................................................................................................10
Telecom bill audit............................................................................................................10
Telecom inventory...........................................................................................................10
Telecom order management.............................................................................................10
Price optimization............................................................................................................10
Information management.................................................................................................11
Outsourced TCM..............................................................................................................11
Network optimization services.........................................................................................11
Research Gap...........................................................................................................................11
Research methodology.............................................................................................................11
Findings and Discussion..........................................................................................................12
Conclusion................................................................................................................................13
Recommendations....................................................................................................................13
References................................................................................................................................15

IMPACT OF CRM ON CUSTOMER LOYALTY 3
Introduction
From the last two decades, telecommunication sector has adopted advance
technologies and systems for managing their business functions especially customer’s
relationship. This report will discuss about the different impact on Customer Relationship
Management (CRM) on the Customer Loyalty (CL) in the Jordanian telecommunication
sector. Besides, many customers are loyal for a firm, which makes a good relationship for
long time. Thus, it is necessary to provide loyalty rewards to them. This report will analyze
various factors of CRM on the CL, which is necessary for business growth as well. Moreover,
this report will provide qualitative study on the telecommunication sector of Jordan (Zahay,
Peltier, & Krishen, 2012). In addition, telecommunication sector has highly affected after
number of competitors in the industry. They have provided various benefits to their
customers for attracting them. Most of the things can be used for improving the performance
of employees and firm, which has affected productivity of a firm as well. Besides, most of the
firms have created specific processes to manage customers relationship, which is an
important part of a business (Stein & Smith, 2009). In case of telecommunication sector of
Jordan, customers have shifted their mobile service operators. Thus, it is necessary for
business growth and success of a firm. The main key player in the telecommunication
industry are Jordan Telecom (JT), Batelco, Zain Jordan (ZJ), and virgin mobile.
Research objective
The main objective of the study is to investigate the influence of customer
relationship management on the satisfaction level of the consumers. The present study will be
focusing on the telecommunication sector of Jordan.
Literature Review
In the Jordanian telecommunication market, most of the telecom service providers
facing huge level of competition. Moreover, it is a common thing in the business, but it can
be reduced using various approaches as well. There are many changes in the basic
functionality of a business to improve productivity. Most of the businesses have faced high
level of competition because of changes in the technologies as well. However, completion
level is high because of different reasons including, market changes, technical changes,
demands, and many others. In addition, Information and Communication Technology (ICT)
services have affected telecom sector of Jordan (Noor, 2013).