Customer Relationship Management and Business Performance

This report presents a proposal analyzing the impact of Customer Relationship Management (CRM) on business performance. It begins with an introduction outlining the background, problem statement, research aims, objectives, and research questions. The proposal then details a conceptual model and research structure, followed by a literature review exploring the concept of CRM, its practices, and their relationship to organizational performance. The review also examines the importance of key customer focus and knowledge management. The research methodology section outlines a quantitative approach using online surveys to collect data from CRM experts. Ethical considerations and research limitations are also addressed. The report aims to identify the relationship between CRM practices and business performance, analyze the issues faced by organizations, and recommend strategies for successful CRM implementation. The proposal concludes with a list of references.

Running head: PROPOSAL
Impact of Customer Relationship Management on Business Performance
Name of the Student
Name of the University

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PROPOSAL
Table of Contents
1. Introduction..................................................................................................................................3
1.1 Background............................................................................................................................3
1.2 Problem Statement.................................................................................................................3
1.3 Research Aim, objectives and Research Questions...............................................................4
1.4 Conceptual Model..................................................................................................................5
1.5 Research Structure.................................................................................................................5
2. Literature Review........................................................................................................................7
2.1 Concept of Customer Relationship management (CRM)......................................................7
2.2 CRM practices and Organizational performance..................................................................7
2.3 Key customer focus and organizational performance...........................................................8
2.4 Knowledge Management and Organizational Performance..................................................9
3. Research Methodology..............................................................................................................10
Ethical Consideration.................................................................................................................12
Research Limitations.................................................................................................................12
References......................................................................................................................................14

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PROPOSAL
1. Introduction
1.1 Background
Business environments have been looking for success in the market by adopting several
strategies. Customers are most important part for the success for a business organization.
Satisfaction level of customer determines the success of the company in the market. Therefore,
business organization have been working on making a string relationship with customers in the
market (Charoensukmongkol and Sasatanun 2017). Customer relationship management has a
specific position in operation of business organizations. The business perspectives have been
altered in recent years for the implementation of the digital strategies in the market. Various
organization have been looking for developing customer relationship management or CRM in the
market. However, many companies are not able to manage their customers properly. This
research will help in understanding the factors that are relatable to enhance customer relationship
management in the market. The customer relation management’s impact on the performance of
the business will be analysed properly.
1.2 Problem Statement
As commented by Wang and Kim (2017), customers are not satisfied with many business
organization based on their products and services. The relationship between customer and
organization have not been properly managed by the business organization in the market. This
have been degrading performance of businesses in market. Change in the demands and needs of
the customers have been creative negative impact on the performance of the business in the
market. As commented by Nam, Lee and Lee (2019), 70 % of the CRM projects have been a big
failure and negatively affected the performance of business organization in the market.

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PROPOSAL
Therefore, this research will help in understanding the importance of CRM for business
organizations in the market. The use of CRM and its applications will be discussed in the
research. The factors that have been affecting the successful implementation of CRM in the
business organization will be discussed in the research.
1.3 Research Aim, objectives and Questions
This research aims at analysing the impact of customer relationship management on
performance of business organizations.
Following are research objectives:
 To identify the relation between elements of CRM practices and performance of the
business organization
 To analyse issues faced by business organization in maintaining their performance in the
market
 To recommend strategies for successful implementation of customer relationship
management in the business organizations
Following are research questions:
 What is the relationship between elements of CRM practices and performance of the
business organization?
 What issues are faced by business organization in maintaining their performance in the
market?
 How to successfully implement Customer Relationship Management in business
organizations?

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PROPOSAL
1.4 Conceptual Model
Figure 1: Conceptual Model
(Source: Created by author)
1.5 Research Structure
Chapter 1: Introduction
Chapter 2: Literature Review
Chapter 3: Research Methodology
Chapter 4: Data Findings and Analysis
Chapater 5: Conclusion and Recommendation

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PROPOSAL
Figure 2: Research Structure
(Source: Created by Author)

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PROPOSAL
2. Literature Review
2.1 Concept of Customer Relationship management (CRM)
As suggested by Pour, Mamani and Rahimzadeh (2018), roots for CRM has been based
on marketing theory in relationship. The relationship marketing theory is a procedure of
identifying, maintaining and developing exchanges of relation with purpose of performance
exchange. As stated by Srivastava, Chandra and Sinha (2018), CRM is not a software but a
process of satisfying customer and making positive relation with the customers. It has been
related to the quality management for business organization. However, with changes in time,
CRM has been evolved to a marketing techniques for developing performance of business
(Nasution and Rafiki 2018). CRM has been considered as a marketing processes for business
organization. Previous studies mentioned that the use of CRM practices helps in increasing
presence of the business in the market. Customers have been maintaining a healthy relationship
with the company in market. It has been a core organizational process that helps in imaging keen
approach in the market. The use of CRM strategies have been helping in providing a better
approach in enhancing the performance of the business.
2.2 CRM practices and Organizational performance
As commented by Chen and Wu (2016), CRM practices have been critically affecting the
performance of organization in the market. Organization performances can be stated as how well
a business achieves its market orientation and financial goals and objectives in the market.
Previous studies refers to the use of the specific measures for the development if the performance
in the market. The use of CRM practices are helping in imagining a keen approach in market.
Marketing performance has been closely related to the CRM practices evolved by the
organization. Main extension of the CRM practices have been related to the customer retention

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PROPOSAL
ad valuation. As mentioned by Abbas and Hassan (2016) old customers are more important than
acquiring new customers in the market. Therefore, business organization need to focus in
customer retention in the market. In the aspect of financial performance, CRM has been helping
in keeping financial records of the company in the market. The use of various financial metrics
are helping in maintaining smart approach in the market. As commented by Kim, Heo and Shin
(2018), traditional financial accounting helps in measuring including return on investment might
provide a wrong signals incuding continuous development and innovation in the market.
2.3 Key customer focus and organizational performance
As stated by Soltani et al. (2018) marketing concept helps in promoting and putting
interest of the customer for focusing on the market trend. The performance of organization has
also been deepened on the focus of the customer towards the company. Therefore, there is a
sharp need of attracting customers towards the services and products of the business. A positive
focus of customers to the business will help in determining success of the business. As stated by
John (2018), cost of development of the new customers has been six times more than retaining
the old customers. This can be achieved by proper marketing strategies implemented by the
company in the market. Therefore, proper marketing strategy has been required for development
of the company in the market. This might encourage the CRM practices of the company in the
market. Employee job satisfaction has been another that help in improving CRM activities in the
company. Employees in the CRM department need to be treated properly that helps in increasing
employee performance in the CRM department. Customer relationships have been related to the
relationship between organization and its recent customer base as a key to success (Abbas and Ul
Hassan 2017).

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PROPOSAL
2.4 Knowledge Management and Organizational Performance
As commented by Rajput, Zahid and Najaf (2018), knowledge has been considered as
one of the precious assets in the CRM. Knowledge management has been focused on the
enhancing customer centric focus. It has been worth underlining that concept of knowledge and
information have been utilized interchangeably throughout the literature. Data and information
have been the main pillars for the knowledge management. However, it also encompasses
people, technology and culture. A good knowledge of customer needs and expectations helps in
enhancing loyalty of customers in the market. Repetitive purchases of products and services by
same customers helps in increasing high brand image and loyalty of customers in the market.
Therefore, proper knowledge ad awareness need to be provided by the company to customers in
the market. Therefore, knowledge management has a significant effect on the loyalty of the
customer and their satisfaction.

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PROPOSAL
3. Research Methodology
Research Methodology has been important section for the study for providing a brief
about the process to be utilized to conduct this study (Panneerselvam 2014). This research will
select a quantitative method for conducting the study. There are two kinds of philosophy which
includes Interpretivism and Positivism. This research will select positivism philosophy as it
focuses on technical method to research topic. Interpretivism is more about observations and
views at social and cultural level. This research will utilize a detailed research design. This
research design helps in conducting the research based on objectives and research questions set
initially. This helps in descripting several attributes of the research topic.
In order to understand deep about effect of CRM on performance of business, a primary
data gathering method will be utilized in the research (Quinlan et al. 2019). Primary data
collection help in collecting data from primary sources. Data will be collected by conducting
online survey with participants. The survey questionnaire will be developed utilizing Google
forms. There will be 50 CRM experts taken as participates of the survey. There will be 10 close-
ended questions which includes in survey questionnaire. All questions will be connected to
research objectives and questions set in the study. This will help gathering proper raw data and
information linked to research. Each respondents will be provided with survey questionnaire and
asked to fill it properly. There will demographic questions included in the survey questionnaire
(Rani, Yadav and Jain 2016). There will be also questions related to 5 point Likert scale. This
will help in understanding their choices of CRM practices in the business organizations. The
total population for the research will be 200 participants. However, in order to accurate results,
random sampling method will be applied for getting sample size of 50 participants.

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The Data Interpretation techniques can be classified into two categories including
quantitative and qualitative data analysis method. Hence, Quantitative data analysis method deals
with statistical analysis of raw data collected from the primary data collection method
(Silverman 2016). The method of qualitative analysis of data deals with the thematic analysis.
Themes are created related to the research topic and analysis is done. However, this research will
select quantitative data analysis method. Graphs, charts and tables will be used for analysing the
data and information collected.

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