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Running head: RESEARCH PROJECT1 Research Project Student’s Name Institutional Affiliation
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RESEARCH PROJECT2 Introduction In the current competitive environment, there is a need for organizations to view their customers in a different perspective. Customer Relationship Management (CRM) is a group of strategic measures, covering different organizational concepts and functions such as operational, analytical framework, and collaborative. By implementing the customer relationship management systems, an organization could derive various benefits such as improved customer experience, leads to a focused business, acquiring new customers, it is cost-effective and is efficient in reputation management. The business operations’ changing dynamics across the world is characterized by extreme competitions, many luxury choices, educated and demanding clients, government acts, and an unsettled socio-economic environment. These current changes have resulted in the adoption of modern marketing practices from the traditional practices by the producers. Essentially, customers are emerging to be the most essential stakeholders at the core of every venture. The customers’ potential of obtaining anything they want at any given time, from any person and any place has led to the disregard of the traditional marketing practices. Businesses are being forced by global dynamics and globalization to re-evaluate their strategies. The survival rate of any business has been greatly influenced by customers’ satisfaction. Despite that Customer Relationship Management influences business performance, it as well has an effect on the customers. Specifically, this paper addresses the CRM’s effectiveness in assisting Australian retail ventures to achieve customer satisfaction. Today, firms have recognized the essentiality of customers as they grow and enhance customers’ strong interactive relationships. There is the possibility of short-term and long-term strategies of an organization to be altered by these relationships. It is essential for an organization
RESEARCH PROJECT3 to be aware of the customers’ desires and expectations and conduct an environmental investigation, particularly the industry and task environment. This is important in coming up with new quality services that are offered to customers and attracts new customers (Chuang&Lin, 2013). To a high extent, there are numerous challenges facing the Australian retail businesses that emanate from development in technology, globalization as well as increased competitiveness. All these have immensely affected the retail businesses’ marketing strategies, with the aim of becoming more effective in meeting the problems. As an inevitable outcome, businesses have become aware that attaining high quality is not only based on the product or a service, its properties but as well on the products’ end-user. Hence, it is important for organizations to focus on the customers since they are the essential elements of a business. Firms should have an understanding of the customers’ needs, perception, and desires by use of CRM. Basically, this is largely based on the knowledge as well as the manner of integrating them into customer relationship management’s philosophy. An organization is faced with the challenge of attracting new clients while at the same time satisfying and meeting their current customers’ needs (Peltier, Zahay & Lehmann, 2013). Therefore, Customer Relationship Management systems are highly recommended for an organization since it facilitates data and information collection pertaining current clients and new potential clients. Nonetheless, it facilitates easy access and surfing by clients and the top management in solving challenges efficiently as well as enabling businesses to grow thus increasing the revenue. Hence, in understanding CRM’s effects on customer satisfaction in the retail industry in Australia, the following questions are addressed: 1.Does CRM achieve increased attention in Australian retail industry?
RESEARCH PROJECT4 2.What relationship exists between CRM and customer satisfaction in the Australian retail industry? 3.Does CRM have an effect on customer satisfaction in the Australian retail industry? Based on this research, a hypothesis has been set: Ho: there exists no significant effect of CRM on customer satisfaction in Australian retail industry. Literature Review Customer Relationship Management assists in building long-lasting relationships, giving firms the joy of retained clients. Customer Relationship Management involves obtaining satisfaction and trust, which translates to the success of any organization. The entire CRM’s process is aided by the use of computer programs. Customer Relationship Management is made of two essential types, the Analytical and Behavioural CRM. The Analytical Customer Relationship Management gathers and analyses the existing customer data (Charoensukmongkol & Sasatanun, 2017). Also, the Behavioural CRM is based upon service’s interaction psychological underpinning as well as the managerial structures and uses experiments and surveys for efficient CRM. A simple analysis of clients’ satisfaction is essential in determining an organization’s performance. Hence, any firm that implementing Customer Relationship Management, a system should be put in place to check on CRM’s performance. Customer Relationship Management practices facilitate increased customer base. This is because it is an excellent tool for gathering information, and for developing strategies pertaining to new products. Some research indicates that customers tend to rank more the services offered in banks
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RESEARCH PROJECT5 that practice Customer Relationship Management than the banks that do not practice CRM. This illustrates that CRM possess a direct influence on customers’ satisfaction and favourable ratings and a lot more to explore. Ejaz, Ahmed & Ahmad (2013) suggests that CRM’s effects on customer satisfaction can only be achieved if there is enhanced integration of knowledge management capabilities and information technology. The CRM’s success is dependent on efficient management and actualization of the customers’ acquired knowledge. Ejaz, Ahmed & Ahmad, (2013) sort to understand the relationship that exists between CRM and various customer behaviours which include customer satisfaction, word of mouth, clients loyalty, and customer behaviours. The population used for the study was the Fast Food Restaurants’ customers. The target population was the Fast Food customers from six distinct outlets of well-known food chains in two primary cities, Labore and Islamabad. The research indicates that CRM has a direct relationship to the level of client satisfaction as well as the expectations of the client. The expectations of the customers as well were observed to be associated with the loyalty and satisfaction of the customers (Choudhury & Harrigan, 2014). Nonetheless, customers’ expectations did not have a direct relationship to the word of mouth. This indicates that client’s experience does not influence the customers to instantly speak positively regarding the firm. Continuous customer experience enables customers to develop a positive attitude towards the company and feel satisfied when using the organization’s products. The research further shows that clients are not bothered by one time good experience. Rather, they make use of the goods for some time and after being positively exposed for a number of time, they become satisfied and gain loyalty to the firm.
RESEARCH PROJECT6 In their model, Ejaz, Ahmed and Ahmad present another relationship that appeared to be rational and logical but was not found being present later in their model. This is the associationbetween client satisfaction and word of mouth. Of the four variable aimed to be researched on, only three variable; CRM, client satisfaction, and client experience did not have a direct relationship to the word of mouth. The final model indicated that a direct relationship existed between customer loyalty and word of mouth (Fayerman, 2002). The model reveals that Customer Relationship Management practices do not have a direct relationship to the word of mouth (Ejaz, Ahmed & Ahmad, 2013). However, the model indicates that CRM has impacts on customer satisfaction and improves customer experience’s value. Customer experience as well has an impact on customer satisfaction and both, contain a direct relationship to customer loyalty. In turn, customer loyalty has an impact on the word of mouth. Findings of this research provide insights into a mechanism that affects the customer behaviour. The outcomes of the research are consistent with other researchers indicating that Customer Relationship Management has no direct relationship to customer loyalty (Zali & Heydarian, 2012). Concurrently, the research did not identify any direct relationship of Customer Relationship Management to word of mouth. Similarly, the research failed to note if any relationship exists between customer satisfaction and experience with CRM. However, the research identified a direct interaction between CRM with client satisfaction and experience (Demo, Watanabe,Chauvet & Rozzett,2017). Since most of the customers at these restaurants are urban citizens, dining at these restaurants has become part of their life and they no longer view it as a luxurious thing. Hence, Customer Relationship Management practices do not make these customers loyal or get them to speak about the restaurants. Rather, the CRM practices avail the customers with a good and memorable experience and make them satisfied.
RESEARCH PROJECT7 Additionally, Shaon and Rahman seek to review whether CRM has any effectson customer loyalty and their level of satisfaction. In their work, they identified several Customer Relationship Management factors that directly are directly linked to customer satisfaction and customer loyalty. These factors include reliability, customer retention, customization, customer attraction, customer orientation, responsiveness, Information Technology, and commitment. The study demonstrates that of a close connection that exist between CRM with client satisfaction as well asclient loyalty (Elmuti, Jia & Gray, 2009). Also, a relationship exists between client loyalty as well as client satisfaction. Generally, the CRM factors tend to have an essential influence on client loyalty and client satisfaction (Shaon & Rahman, 2015). The research identifies CRM’s components are made up of a CRM process as well as interconnections among CRM, client loyalty, and satisfaction. By effectively implementing CRM practices, the authors note that there can be a lot of benefits reaped from this. Client satisfaction is affected by the quality of the products; thus implementing CRM would enhance customer satisfaction (Harrigan & Miles, 2014). Also, customer loyalty is influenced by the service’s quality; hence implementing an effective CRM would improve customer loyalty. Nonetheless, client satisfaction has a direct connection with client loyalty. Hence, satisfied customers tend to remain repeat customers. The authors note that satisfied customers usually connect with a service provider. Additionally, Shaon & Rahman, (2015) argue that Customer Relationship Management ensures customer satisfaction. To achieve the intended customer’s satisfaction level, there should be a proactive corporate responsiveness to allow access, build, and retain sustain clients for sustainable market advantage. CRM impacts possess a direct effect on the satisfaction of the clients. Thus, a company that practices effective CRM strategies has an assurance of increased
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RESEARCH PROJECT8 customer satisfaction (Iriana & Buttle, 2006). Lack of an efficient CRM strategy will lead to decreased customer satisfaction. Through the use of modern communication technologies, it is easy for CRM to effectively communicate with the clients while at the same time meeting their expectations. Meeting customers’ expectations assists in enhancing customer satisfaction. The study as well contains various managerial implications. Organizations that implement the Customer Relationship Management application are supposed to have an understanding of the different conditions under which the deployment of the CRM’s applications enhance customer satisfaction and loyalty (Jain, Dalela & Tiwari, 2009). The result from the research demonstrates benefits of integrating client satisfaction and customer loyalty in realizing benefits from applying Customer Relationship Management. The results are essential to the managers that are currently actualising CRM. Organizations that have enhanced interaction with their clients have an increased opportunity of benefiting from the application of CRM, regarding the customer satisfaction and customer loyalty. The study as well indicates that despite implementing CRM, it is necessary for managers to institute measurement systems that will effectively capture customer knowledge gains resulting from implementation of the Customer Relationship Management applications (Long, Khalafinezhad, Ismail & Rasid, 2013). This is because customer loyalty’s gains are a precursor to customer satisfaction’s gains. Nonetheless, Yaghoubi, Asgari & Javadi (2017) carried a research to understand CRM’s effects on the productivity of companies, client satisfaction, and trust by applying structural equation model. They based their research on hospitals located in Iran. The study population of this study was the nurses from few selected hospitals in Isfaham. The results of the study indicated that CRM’s effects were high on customer satisfaction, loyalty, and trust. The existence
RESEARCH PROJECT9 of CRM helps in reducing the gap that exists between customers and organizations, thus leading to the success of the firms by improving customer loyalty (Trainor, Andzulis, Rapp & Agnihotri, 2014). However, the existence of the patient complaint management in these hospitals has been termed as being among the contributing factors, and it has had the highest effect. The results from this study indicate that among CRM’s tasks, services’ diversity has had the most impact. The most essential mechanisms to increase services’ diversity include; availing services based on the patients’ needs and expectations, as well as the existence of existing and new services (Yaghoubi, Asgari & Javadi, 2017). Essentially, CRM is an organizational strategy which is designed depending on the needs of the clients, thus enhancing communication between an organization and the customers. This results in increased opportunities for the firm to offer additional products and services to the clients. The other element that had an effect on this research is the customer interaction, which is a CRM’s function. Treating the medical staff and the patients well and holding conversations with the patients outside the hospitals’ vicinity are among the effective strategies that helped enhance interaction with the patients. Nonetheless, the CRM’s functions were adversely influenced by identifying and prioritizing customers. The clients who were likely to cut their relationship with the organization were identified and measures put in place to enhance their loyalty. In the area of customer satisfaction, the research has considered the existence of patient’s complaints management in the hospitals as well as measuring the level of customer satisfaction (Khodakarami & Chan, 2014). An examination has been done on customer satisfaction, the perceived quality, customer expectation, customer loyalty, complaints, and the functions of CRM. There was little impact on the customer loyalty and trust where patients preferred services from other hospitals if the
RESEARCH PROJECT10 conditions are better. This indicates that if the considered conditions are of high standards in the other hospitals, the patients tend to be loyal and trust exists between these hospitals and the patients. Also, the results indicate that there was a significant impact of financial constraints and problems and issues regarding the patients and other customers with the medical staff. Among the primary effects of CRM in the research was on customer satisfaction and productivity. According to Yaghoubi, Asgari & Javadi, (2017), organizations can obtain seven main productive benefits through the adoption of CRM, such as efficiency and effectiveness. They also point out that customer loyalty, customer satisfaction, and enhanced productivity are as a result of Customer Relationship management. Thus, CRM should be an imperative tool for every organization because if it is effectively implemented, it may result to enhanced customer satisfaction, loyalty, and attracting potential customers, resulting to increased sales and repeated purchases. Also, Mensah (2016)reviews the CRM’s effects on client satisfaction and client loyalty. To do this, the author retrieved necessary documents form the online databases, providing a comprehensive reference on CRM’s influence on client satisfaction and loyalty. In evaluating more than 35 articles, it was clear to the researcher that Customer Relationship Management had become an area of interest due to its relative novelty and exploding development (Komunda & Osarenkhoe, 2012). The result indicated that CRM had been conceptualized in three primary dimensions namely; SQ which is the customers’ attitude and opinion on the presented excellence of the service by the service provider. SQ’s essentiality is to avail the customers’ needs. It is observed that if the experience of the customers exceeds their expectations, they are more likely to return and transact more business with the service provider. Conversely, reduced service
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RESEARCH PROJECT11 quality results to customers becoming inclined to defect to other service providers since they are not obtaining what they desire. The second dimension of this study is the SA which refers to the timely accessibility of products to clients. Enhancing the accessibility of products by the customer results to improved customer satisfaction (Mensah, 2016). The results of the study reveal that SA has been conceptualized by service’s development, service’s provider geographic location, and application of remote systems in availing the services. The author notes that most studies that made use of the SA as their independent variable indicated existence of a direct correlation between client satisfaction and loyalty (Dhingra & Dhingra, 2013). The third dimension is the HC whereby organizations are entitled to deal with customers’ dissatisfaction. They are then to improve on procedures to help solve customer problems, which would result in nurturing customer satisfaction and loyalty. The outcome of the research shows that HC has a primary effect on the customer satisfaction and loyalty. Mensah (2016) also notes that CRM is a complex phenomenon and only its primary measures that influence client satisfaction and client loyalty are used in the study. To achieve a competitive advantage and improved organizational performance, there is a need for continuous improvement to attain increased customer satisfaction and loyalty (Mohammed & Rashid, 2012). Based on this study, Customer Relationship Management has been conceptualized into three primary dimensions, which include, SQ, SA, and HC. In most of the studies used in this research, the three dimensions are observed as having noteworthy influence on client satisfaction and client loyalty. Significantly, Al-Qeed, ALsadi & Al-Azzam (2017) seek to understand the roles played by CRM in achieving client satisfaction in Jordan’s banking sector. The research mainly focused
RESEARCH PROJECT12 on Jordan banks. The outcome form this research revealed that degree of importance given to CRM was average while the degree of essentiality towards banking quality of the services was high. Nonetheless, the researchstipulated a direct correlation between CRM and the banking services’ quality (Al-Qeed, ALsadi & Al-Azzam, 2017). However, the results indicated a negative relationship between CRM’s client loyalty and client satisfaction and quality of the banking services. This was contrary to the expectations of the research whereby the researcher aimed to identify if there was a relationship between customer satisfaction and loyalty with the quality of the services offered. In this case, the rule is that service quality is perceived to be essential to the firm and the customer, and thus would translate to increased client satisfaction and client loyalty to an organization and the services offered (Baumann, Elliott & Burton, 2012). Notwithstanding, many studies that have been conducted reveal that there is a direct relationship between Customer Relationship Management and organizational performance, customer satisfaction, customer loyalty, and customer perception (Nazir, Khan,Jamil & Mehmood, 2014). However, results from this study reveal that there is a statistically significant effect of CRM’s dimensions which include client satisfaction and client loyalty. Finally, results from the research show that the influential dimensions of the research were customer culture, customer, retention, and knowledge. They were followed by client value, client loyalty, and the client satisfaction (Hsieh, Rai, Petter & Zhang, 2012). According to the authors, customer knowledge has become essential whereby growth and development in this era of technology have made clients to be aware than before of their needs. This has resulted in a challenge in satisfying these needs in terms of the provided products and services. The study reveals that there is a desire for firms to emphasize more on customer relation, with an aim of
RESEARCH PROJECT13 convincing them with the availed services and products. This should not only aim to meet the customers’ needs but also should go beyond the customer’s expectations, thus resulting in customer satisfaction. The results from this study present Customer Relationship Management’s necessary implications for effective management (Amoako, Arthur,Christiana & Katah, 2012). This notion would result in enhanced organization’s competitive advantage in thishyper- competitive market. For a firm to be capable to retain customers, it should be committed to establishing committed customers. The aim is for the customers to participate in improving the products and services’ quality. Additionally, the study reveals that customer satisfaction is directly affected by customer loyalty and hence customers become committed to the firm’s products and services thus improving customer retention. The authors suggest that most companies use many strategies aimed at increasing customer satisfaction, customer loyalty, customer commitment, and to influence the retention and share of the customers. Customer Relationship Management min objective is to emphasize mostly on the loyal clients and enhance their share since there is a possibility of their tendency being reduced in the future. Notably, Hassan, Nawaz, Lashari &Zafar (2015) investigates the impacts of Customer Relationship Management to customer satisfaction. The authors carried out a qualitative research describing the banking sector, particularly regarding the organization’s commitment impact on individual job workers. The research shows a significant effect on customer satisfaction attributed to CRM. The two variables portray of having a positive relation (Khan, Ehsan, Mirza & Sarwar, 2012). As an organization improves on its Customer Relationship Management, the customers are observed to be more satisfied and remain loyal to the company. The improved level of satisfaction allows the clients to come for more services from the service provider and
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RESEARCH PROJECT14 ends up using the organization’s products (Hassan, Nawaz, Lashari & Zafar, 2015). This leads to increased sales from the organization which results in an increase in the profit margin. This is because as customer satisfaction increases, the number of customers will as well increase. The findings indicate that there is a primary role played by CRM in improving the customers’ satisfaction levels as well as increasing the organization’s profits through reduction of costs incurred in approaching the customers (Rodriguez, Peterson & Ajjan, 2015). At the same time, Customer Relationship Management also increases the number of organization’s customers and improves the firm’s rivalry advantage. The objective of the Customer Relationship Management is to reach the right client, at the right time, and using the best channel. Results from the research indicate that 70% of the surveyed population are satisfied with the product’s delivery and its quality. Hence, CRM directly connected to client satisfaction. According to Reimann, Schilke & Thomas (2010),Customer Relationship Management (CRM) denotes a combination of technology, organizational strategy, and information systems that is tailored to offer good customer service. The authors further note that the key goals of CRM include fetching new customers, keeping the existing customers, and creating a beneficial relationship with the current customers. CRM can be viewed as a methodology that aims at creating and revolutionizing a company in the market sphere while at the same time, instilling a positive opinion of the company on the individual customers (Reimann, Schilke & Thomas 2010; Laketa, Sanader, Laketa &Misic, 2015). The modern age has seen customers become more educated, more informed, better at technology, possess greater purchasing power and therefore, overly demanding and specific on the goods and services they need. In this regard, the Australian retail businesses need to adopt CRM as an approach that not only makes the customers feel
RESEARCH PROJECT15 important, but also incorporate them into the development and research team, the advertisingteam, the marketing team, and any other component of the company that can reap benefits from the contributions of the customer(Faed, Ashouri & Faed, 2010). The Australian Retail industry has managed Notably, an industry’s revenue is generated from two main groups of customers namely; repeat and new customers, all of whom remain in the industry as a result of the satisfaction they get from the services and products (Khodakarami & Chan, 2014). Keeping customers satisfied ensures that the Australian retail industry saves on costs as the process of attracting new customers once the old ones have been lost will be costly.Khodakarami, & Chan (2014) note thatsatisfied customers have examined and pin pointed the needs that have been met by the industry’s services and products over the years. By tailoring the industry’s marketing strategy on the segments of the customer that are profitable (i.e. the satisfied customers), an industry will eventually increase its market share and revenue without necessarily having to invest on winning more customers which requires more revenues than satisfying the old ones (Khodakarami & Chan, 2014). Satisfied customers not only seek to repurchase an industry’s products and services, but also recommend the products and services to their friends and family, shun other competitive brands, and often purchase products and services from line extensions (Wang, Moyle, Whitford & Wynn-Moylan, 2014). To initiate effective customer satisfaction strategies, the industry needs to have a comprehensive understanding of the needs and behaviors of the customers. Loyalty can be denoted as an emotional and physical commitment granted by the customers in exchange of satisfaction (Long & Khalafinezhad, 2012).
RESEARCH PROJECT16 According to Graf, Schlegelmilch, Mudambi, & Tallman (2013), customer satisfaction translates to customer loyalty, which over time, will develop provided that the frameworks for the mutual relationship are drafted and executed appropriately. The ultimate factor that differentiates between industries and brands in a democratized market is the degree of customers’ relationships (this may be either psychologically or physically) and the quality of products and services (Paliouras&Siakas, 2017). Customer satisfaction refers to giving customers all they need so that they will not have to consider purchasing from the competitors. Keeping customers satisfied means that they will keep coming back for more. Notably, customer satisfaction is a basic component of CRM and thus industries and organizations need to consider this fact. The longer the customer remains with the industry, the more the industry gains, and the vice versa is also true (Tuleu, 2015). It has been discovered that companies offering exclusive services and products, or even the monopolistic ones, find it easy to satisfy customers. It is an undisputed fact that customers may not like a certain a certain industry or organization. However, the convenience the company offers by far outweighs the emotional aspect of disliking the company (Rababah, Mohd & Ibrahim, 2011). In such a scenario, the number of satisfied customers may be significant, but all this is constructed on a premise that is false. Multiple customers will vanish as soon as a better substitute is established in the market. The emotions triggered by the experiences the customers undergo in the process of using the industry’s products or services play the role of chief mediator for customer satisfaction (Farhadi, Ghartemani, Ghartemani & Gigloo, 2013;Khalifa & Shen, 2009).When integrated with the undeniable expertise as well as the outstanding reputation of the industry, the emotions of the customers are the prime determinants of customer satisfaction. Devoid of the emotional bond essential to satisfy customers, even keeping customers loyal will be an uphill task. Interactions or
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RESEARCH PROJECT17 activities that trigger negative emotions negate trust. Despite the fact that there are few evident exceptions, the majority of companies and industries have no intention of negating trust. Long, Khalafinezhad, Ismail, & Rasid, 2013 define customer relationship management (CRM) as a concept for controlling the interaction of an organization with the sales prospects, clients, and customers. It entails the use of technology to synchronize and automate the processes of the organization. In addition to customer satisfaction, other roles of CRM include profit and income enhancement. To attain CRM, the Australian retail industry will have to use procedures, technologies, and tools to improve the relationship with customers for the purposes of creating customer satisfaction. The Australian retail industry cannot dismiss the importance of customer satisfaction as happy customers will do the advertising on behalf of the company (Long, Khalafinezhad, Ismail, & Rasid, 2013). In this regard, the customers should be placed at the centre of all business processes, events, and strategies. Multiple businesses are currently enacting strategies aimed at retaining customers and impacting their employees so that they can focus more on the customers as well as offering services. Long, Khalafinezhad, Ismail, & Rasid, 2013 indicate that the evolution of the global market place has significantly affected businesses. In the current business era, companies not only aim at attaining customer satisfaction, but also satisfy the customers more effectively and efficiently as compared to their competitors. This will certainly ensure that the organization attains its goals. The most essential goal of a business is to keep customer satisfaction and concentrate on a customer-centric strategy in their marketing and organizational approaches. Santouridis & Trivellas (2010) argue that achieving customer satisfaction is not sufficient as customer satisfaction should posses an impact which is direct to customer loyalty.
RESEARCH PROJECT18 Khaligh, Miremadi & Aminilari (2012) sought to investigate what impact CRM poses on the customer loyalty and satisfaction in the Iranian telecom industry. The study gathered data from 200 Iranians who used telecom services. The findings of this study indicated that the management system needs to have vision and commitment so that the CRM can be successfully implemented. The strategy’s structure ought to be grounded on the flexibility of the pricing policies as well as other policies. These factors are very important as they serve to increase the satisfaction of customers and also benefit the industry in multiple ways (Khaligh, Miremadi & Aminilari, 2012). Research byBhattacharya (2011) indicates that CRM is adopted to improve the performance of the company and also reduce costs, which means the company will generate more profits due to customer satisfaction. Indeed, in the process of a fruitful CRM adoption, data and information is gathered from sources which may be either external or internal including the customer service, sales department, procurement, after sales services, marketing, among others (Noor, 2012). This is essential in getting a wholesome view of all the requirements of the customer in a real-time system. The information will be important as it will assist the employees in making decisions fast and accurately when handling customers in multiple touch points and areas. This study gave the general conclusion that customer treatment and perception granted to each customer plays a huge role in assisting the organization solve customer-related challenges. Therefore, customer satisfaction would be possible through a fruitful CRM implementation. In this regard, organizations should be examine the various customer requirements and make appropriate adjustments to their policies to improve the competitiveness of the organization which will eventually lead to customer satisfaction. A conceptual framework submitted by Faed (2010) suggests that CRM magnifies the relationship between the competitors and customers in an organization to maximize the firm’s share in the marketplace by adopting procedures,
RESEARCH PROJECT19 technology, and people. The prime aim of CRM, according to Faed (2010), is to keep the customers, increase their satisfaction, and boost the organization’s sales. Satisfying customers, as well as pleasing them, are both crucial components in a fruitful CRM adoption for fostering customer satisfaction. Wang & Lo, (2004) discovered that the CRM framework is founded on two perspectives. The first perspective measures customer behavior factors including repurchasing, rate of customer acquisition, and up and cross selling. The second perspective measures the quality relationship including customer loyalty and satisfaction. For this study, two China-based companies were identified and 400 customers from the companies were selected at random. Looking at the final findings, the customers’ functional and emotional behaviors possess a positive implication to the satisfaction of customers and customer satisfaction has a positive implication on the behavior of customers based on the elements of CRM. On a final note, the conclusions of the study depict that behavior of customers based on CRM possess a positive implication on brand loyalty as well as customer satisfaction (Wang & Lo, 2004). Zineldin (2006) sketched a triangle approach between CRM, customer loyalty, and quality which is connected to an organization’s competitiveness. Essentially, this study was tailored to examine the satisfaction of customers on the basis of two key factors where the database of the customer and CRM’s strategy needs to be structured appropriately and the system’s capacity should be sufficient to generate data for accurate examination. The findings of this study indicated that quality changes in an organization over a certain period could be applied as an indicator to gauge the degree of customer satisfaction via a CRM strategy that is well-structured. In a scenario where the indicators of atmosphere and interaction are connected to the process and product
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RESEARCH PROJECT20 quality, the researchers will easily determine the CRM strategy changes that must be executed to enhance customer satisfaction. Izquierdo, Cilla´n, & Gutie´rrez (2005) created a model that tests car maintenance and repair as a scenario where there is a frequentative and long-term customer relationship. Customer perception as well as market position and loyalty were analyzed using a path analysis. The hypothesis was examined using path analysis. Notably, path analysis studies the relationship between economic performance and marketing activities. Izquierdo, Cilla´n, & Gutie´rrez (2005) proposed this model based on the economic and market performance. The model’s measures submitted by the authors are; market position, customer satisfaction, insight of customer, and market and economic performance.According to the findings, implementation of CRM encompasses attraction activities including quality of services, loyalty bonuses, and so forth. As a consequence, the customers will have the right perception which translates to enhanced customer satisfaction and thus performance of the organization will increase in regard to economic performance. Feinberg & Kadam (2002) argue that the current world calls for an online business instead of the traditional method of conducting business activities. In such a way, internet usage creates a chance fororganizations to apply it as a technique for CRM. Their research further indicates that there are 42 distinct e-CRM aspects adopted by retailers. The findings suggest that there is a great connection between CRM implementation on the retailers’ websites and satisfaction of customers which translates to customer loyalty. The authors note, however, that all the features of the CRM that is implemented are not similar in regard to customer satisfaction prediction.
RESEARCH PROJECT21 Ramaj & Ismaili 2015 notes that is possible for companies to attain competitive advantage and eventually customer satisfaction. This can be done by offering the needs of the customers, developing a superior customer value, and offering better than the competitors. Beneficial CRM implementations must be coupled with strategy, technology, and philosophy approaches.As s philosophy, CRM aims at creating customer relationships that will last for long. On the other hand, CRM as a strategy focuses on creating long-term relationships with a selected group of customers that are regarded as profitable. Establishing a organizational culture that is customer oriented, building a CRM approach that that acts as a reference point and also enforces the organizations commitment of instilling a customer centric perspective and discovering the CRM approaches by adopting enabling technologies are the key supporters for a beneficial CRM implementation. A CRM strategy that concentrates more on customers, is viewed to match appropriately with customer intimacy value discipline as both customer intimacy value and CRM approach focus on creating a profitable relationship with customers that will not only last for long, but also generate significant profits for the organization. As the case with defensive strategy, organizations that execute CRM strategies target at recording more sales through development of customer satisfaction. Implementing CRM grants the company a perfect chance to gain competitive advantage via the method used to integrate the CRM. Organizations that have the ability to transform their information assets into a strategic advantage from a tactical project will reap the huge benefits of CRM. The modern CRM technologies help companies to control the knowledge of customers and make decisions that are in line with the needs of the customers. By using the CRM, the business model that is customer-centric align the company and its products delivery as well as the services surrounding the customers by creating analytical insight, linking the established insight to interactions of customers, and merging learning to
RESEARCH PROJECT22 enhance the results continually. The key aim of adopting a CRM strategy that is customer centric is to boost profitability by ensuring that there is increased customer satisfaction. Notably, a satisfied customer will remain loyal to the company and this is the main reason why customer satisfaction is regarded important. A customer who is highly satisfied will remain loyal for the longest time, boost their purchases as time passes by, buy from the company in case a new product is introduced, upgrades the current products,speaks positively about the company’s brand, is less prices sensitive, pays minimal or no attention to competitors, and give ideas to the company on how to improve the current products or generate new products. The bottom-line is that applying CRM is highly essential enhancing the level of customer satisfaction. An improved emphasis on customer satisfaction has translated to economic performance improvements of organizations. Overall, a significant degree of customer satisfaction will make the existing customers more committed to the organizations products. Future transaction costs within the company will be reduced as a consequence of customer satisfaction. In a scenario where the level of satisfaction in a certain company is high, it will not be necessary to spend resources to acquire new customers. Satisfied customers will often buy the products offered by an organization at an even higher intensity.A well-structured CRM strategy offers the organization a chance to enhance the general performance (Fatma, 2014). The reputation of the company will as well be improved as a result of the high customer satisfaction. The improved reputation will, in turn, make it easier for the organization to introduce new products and services, create a direct awareness, and minimize the risk associated with persuading customers to buy a new product. Ensuring that the organization consistently offers products and services that lead to customer satisfaction plays a key role in generating maximum profits. An organization that has the
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RESEARCH PROJECT23 capability of satisfying needs considerably fewer resources for management of complaints, repairing damaged products, and management of returns. Iriqat & Daqar (2017) submit that CRM entails the controlling of the interactions of an organization with the customers via the analysis of data regarding customers’ history to ensure that the levels of customer satisfaction remain high. Iriqat & Daqar (2017) further note that the CRM strategy gathers customer data from multiple communication channels such as customer comments and social media for the purposes of learning more about the needs of the customers and how the identified needs can be satisfied. In general, CRM encompasses the practices and technologies that can be applied by organizations to examine and control their interactions with customers throughout the whole lifecycle. The authors further note that technologies adopted in CRM are aimed at automating activities in diverse spheres such as analysis and management, sales, and marketing. In addition, Iriqat & Daqar (2017) denote the key CRM dimensions as the development and keeping of mutual loyalty between the organization and its customers, initiating customer interaction, application of direct methods regarding marketing, and personalization of customer relationship. The aforementioned principles basically aim at minimizing costs and enhancing the efficiency associated with customer interactions including maximizing the speed of decision making and enhancing the efficiency of labor. Iriqat & Daqar (2017) sought to investigate the effect of CRM on Long-term Customer’s loyalty in the banking industry in Palestine. The results indicated that there exists a positive link between the CRM and long-term customers’ loyalty. The implementation of the CRM along with employee behavior clarified 48.2 in the long-term customers’ loyalty variance. Moreover, they proposed that banks should update the customers’ database more often and at particular periods.
RESEARCH PROJECT24 The authors further tried to estimate the extent to which the effectiveness of CRM impacts the potential for engagement of customers, with a unique emphasis on practices relating to CRM, mirrored on the determinants of customer performance. The findings indicate that the general gratifications with the bank as well as affective commitment on the side of the customer are important determinants of the willingness of the customer strengthen their relationship with the bank. Besides this, the significant presences of the bank in the social media platforms provide the customers with a strong urge to engage the bank in social CRM. Muro, Magutu & Getembe (2013) studied the strategic drawbacks and benefits of applying CRM in the banking industry. They found that the application of communication and information technologies issued bank customers with personalized attention and service. Besides this, the researchers revealed that CRM enhances the processes and interactions with customers and also with partners in business (B2B). Also important to note is that CRM initiates long term loyalty and relationships if it is implemented in the right manner. CRM is important to the employees, the investors, and customers given that it improves performance (Graf, Schlegelmilch, Mudambi, & Tallman, 2013). Rezghi, Valmohammadi & Yousefpoor (2014) further studied the link between customer satisfaction and CRM systems in the Iranian banking industry. They applied inferential statistics and regression techniques to examine the data extracted from the questionnaires concerning the bank’s customers. Their findings indicated that there is a significant and positive interrelationship between the gratification of customers and CRM’s four constructs which include complaints handling, quality of services, characteristic of services, and the access level of services.
RESEARCH PROJECT25 Conclusion The primary objective of this research paper was to determine theoretically Customer Relationship Management’s impact on the satisfaction of organizational customers. As a result, this formed the basis of developing the research questions as well as the hypothesis. The problem to be researched on was summarized in the research questions. The research questions were aimed to guide the entire literature review’s process of identifying if there is any direct link that exists between CRM and clients’ satisfaction. On the other hand, the hypothesis was meant to ensure that the right variable was being tested as well as providing a quick solution which facilitates the communication of the results. The results from the above literature review proves our expectation wrong. Rather, it shows that there is a close relationship between CRM and customer satisfaction. The literature provided above undoubtedly submits that the CRM system is important in helping the Australian retail business achieve customer satisfaction. Multiple studies, as shown above, have proposed that there is a significant and positive connection between the dimensions of the CRM and customer satisfaction. The Australian retail industry is, therefore, requested to periodically look at the complaints and problems facing the customers to avoid similar occurrences in the future.It is also important for the Australian Retail industry to notea clear comprehension of CRM implementation is important as it will assist in the development of strategies that will help to keep customers satisfied. Organizations should not view CRM as just a technical tool, but also as a change in the general business culture and structure. The efforts as well as the promises that will be made by the organization to increase customer satisfaction will be determined by the resources injected towards CRM implementation. This will put the
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RESEARCH PROJECT26 organization in an excellent position whereby competing with the rivals will not be problem. Hence, CRM has been transforming to become an important strategic tool for the modern dynamics market characterized by continually changing customer needsand thus organizations should aim at satisfying customers to achieve success.Rababah, Mohd & Ibrahim (2011) maintain that analytical CRM tools can be applied in maximizing customers’ relationships via examining customers’ captured data. An analytical CRM is adopted when analyzing the behaviors of customers as well as the inquiries to guide the decision making process. Recent studies have proven that there are multiple impacts for managerial decision making in the customer satisfaction area. Considering that pleasure has been continually noted to play a key role in maintaining consumers, the Australian retail industry should consider offering products and services that will satisfy customers and also keep them loyal. The literature review identifies that businesses make use of multiple strategies with the intention of increasing the clients’ satisfaction, their commitment, retention, loyalty, as well as impact on the clients’ share and retention.CRM’s primary emphasisis on the loyal clients as well as enhancing their share since in the future, the tendency is to be reduced. Hence, further research should aim at studying CRM, including all the variables which are associated with the clients. This should be tied with Customer Relationship Perception (CRP) as well as Relationship Marketing Instrument (RMI) in both the service and the non-service sectors. Nonetheless, research could be carried out to determine the impacts that CRM has on a company’s financial performance.
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RESEARCH PROJECT29 Faed, A., Ashouri, A., & Faed, M. (2010, November). The Transition of Sports Marketing from E-CRM to E-SRM. InP2P, Parallel, Grid, Cloud and Internet Computing (3PGCIC), 2010 International Conference on(pp. 569-573). IEEE. Farhadi, F., Ghartemani, S. K., Ghartemani, H. K., & Gigloo, R. R. (2013). Assessing the Relationship between E-CRM and Customers Retention in Parsmodir Khazar Enterprise.Life Science Journal,10(7s). Fatma, S. (2014). CUSTOMER RELATIONSHIP MANAGEMENT: THE STUDY OF CUSTOMER PERSPECTIVES ON RETAIL BANKS IN INDIA.International Journal of Management Research and Reviews,4(1), 27. Fayerman, M. (2002). Customer Relationship Management.New Directions for Institutional Research,2002(113), 57-67.http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer? vid=0&sid=e6b8d663-95fa-4ac6-bb15-48ef67358bcb%40sessionmgr103 Feinberg, R., & Kadam, R. (2002). E-CRM Web service attributes as determinants of customer satisfaction with retail Web sites. International Journal of Service Industry Management, 13(5), 432-451.http://dx.doi.org/10.1108/09564230210447922 Graf, M., Schlegelmilch, B. B., Mudambi, S. M., & Tallman, S. (2013). Outsourcing of customer relationship management: Implications for customer satisfaction.Journal of Strategic Marketing, 21(1), 68-81.https://doi.org/10.1080/0965254X.2012.734844 Harrigan, P., & Miles, M. (2014). From e-CRM to s-CRM. Critical factors underpinning the social CRM activities of SMEs.Small Enterprise Research,21(1), 99-116.
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RESEARCH PROJECT32 Komunda, M., & Osarenkhoe, A. (2012). Remedy or cure for service failure? Effects of service recovery on customer satisfaction and loyalty.Business Process Management Journal,18(1), 82-103. Laketa, M., Sanader, D., Laketa, L., &Misic, Z. (2015). Customer Relationship Management: Concept and importance for Banking Sector.UTMS Journal of Economics,6(2), 241. http://utmsjoe.mk/files/Vol.%206%20No.%202/UTMSJOE-2015-0602-006-Laketa- Sanader-Laketa-Misic.pdf Long, C. S., Khalafinezhad, R., Ismail, W. K. W., & Rasid, S. Z. A. (2013). Impact of CRM factors on customer satisfaction and loyalty.Asian Social Science,9(10), 247. Long, C. S., Khalafinezhad, R., Ismail, W. K. W., & Rasid, S. Z. A. (2013). Impact of CRM factors on customer satisfaction and loyalty.Asian Social Science,9(10), 247. Long, C., & Khalafinezhad, R. (2012). Customer Satisfaction and Loyalty: A Literature Review in the Perspective of Customer Relationship Management.Journal of Applied Business and Finance Researche,1(1), 06-13. Mensah, K. (2016).The impact of Customer Relationship Management (CRM) on customer satisfaction and loyalty: a study of Divine Love Hospital, Bibiani-Western Region(Doctoral dissertation). Mohammed, A. A., & Rashid, B. (2012). Customer Relationship Management (CRM) in Hotel Industry: A framework proposal on the relationship among CRM dimensions, Marketing Capabilities, and Hotel performance.International Review of Management and Marketing,2(4), 220.
RESEARCH PROJECT33 Muro, M. B., Magutu, P. O., & Getembe, K. N. (2013). The strategic benefits and challenges in the use of customer relationship management systems among commercial banks in Kenya.European Scientific Journal, ESJ, 9(13), 34-49. Nazir, S., Khan, S., Jamil, R. A., & Mehmood, Q. S. (2014). Impact of customer relationship management on customer satisfaction in hoteling industry.Journal of Management Info,3(1), 84-98. Noor, N. A. M. (2012). Trust and Commitment: Do They Influence E-Customer Relationship Performance?International Journal of Electronic Commerce Studies,3(2) 281. http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?vid=0&sid=b419322f-c153-4d76- 804b-401a7ae95c3f%40pdc-v-sessmgr01 Paliouras, K., &Siakas, K. V. (2017). Social Customer Relationship Management: A Case Study.International Journal of Entrepreneurial Knowledge,5(1), 20-34. http://eds.b.ebscohost.com/eds/pdfviewer/pdfviewer?vid=18&sid=602a274b-4e3b-4398- 9e5a-2fb9a43f594b%40sessionmgr104 Peltier, J. W., Zahay, D., & Lehmann, D. R. (2013). Organizational learning and CRM success: a model for linking organizational practices, customer data quality, and performance.Journal of Interactive Marketing,27(1), 1-13. Rababah, K., Mohd, H., & Ibrahim, H. (2011). Customer relationship management (CRM) processesfrom theory to practice: The pre-implementation plan ofCRM system.International Journal of e-Education, e-Business, e-Management and e- Learning,1(1), 22.
RESEARCH PROJECT34 Ramaj, A., & Ismaili, R. (2015). Customer Relationship Management, Customer Satisfaction and Loyalty.Academic Journal of Interdisciplinary Studies,4(3 S1), 594. Reimann, M., Schilke, O., & Thomas, J. S. (2010). Customer relationship management and customer satisfaction: the mediating role of business strategy.Journal of the Academy of Marketing Science,38(3), 326-346.qwa Rezghi i, A., Valmohammadi, C., & Yousefpoor, J. (2014). The relationship between customer gratification and customer relationship management system; a case thesis of Ghavamin Bank.Industrial and Commercial Training, 46(4), 220-227. Rodriguez, M., Peterson, R. M., & Ajjan, H. (2015). CRM/social media technology: impact on customer orientation process and organizational sales performance. InIdeas in Marketing: Finding the New and Polishing the Old(pp. 636-638). Springer, Cham. Santouridis, I., & Trivellas, P. (2010). Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece.The TQM Journal,22(3), 330-343. Shaon, S. K. I., & Rahman, H. (2015). A theoretical review of CRM effects on customer satisfaction and loyalty.Central European Business Review,4(1), 23. Trainor, K. J., Andzulis, J. M., Rapp, A., & Agnihotri, R. (2014). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM.Journal of Business Research,67(6), 1201-1208.