Customer Relationship Management Impact on Aramex Retention

This case study investigates the impact of Customer Relationship Management (CRM) on customer retention within Aramex, a prominent international mail delivery and logistics company. The study identifies challenges faced by Aramex in maintaining customer loyalty due to issues such as ineffective services and communication barriers. It explores the research purpose, problem statement, aims, objectives, and research questions related to CRM and customer retention. A literature review examines the relationship between CRM and retention, factors affecting CRM effectiveness, and relevant theories. The research methodology employs a positivist approach with deductive reasoning, utilizing surveys of 100 consumers and 5 managers for data collection and analysis. Findings reveal insights into customer loyalty and areas for improvement in Aramex's CRM strategies, leading to recommendations for enhancing customer retention.

Running head: RESEARCH PAPER
Research Paper
(Topic: The Impact of Customer Relationship Management on Customer Retention, case
Study on Aramex)
Name of the Student
Name of the University
Author’s Note

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Abstract
This study had evaluated the impact of customer relationship management and
customer retention in Aramex. It has been seen that Aramex had been facing issues in
retaining their existing consumers in the market. The study had critically analysed different
literature and developed hypothesis. The research methodology had been developed based on
the objective of the research where the study had used a positivist approach and deductive
reasoning has been used. The study had surveyed 100 consumers and 5 managers to develop
in depth analysis of the topic. The result has shown that majority of the consumers are loyal
to the company but it has been seen that 9% of the employees are not loyal to the company
and had given bad reviews. This result is worrying for the company as 9% population in a
small sample would be huge in respect to the overall target population of the company. The
study had also analysed the problems faced by the organization and provided suitable
recommendations based on the need of the organization.

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Table of Contents
Chapter 1: Introduction..............................................................................................................4
1.0 Introduction:.....................................................................................................................4
1.1 Background of the research..............................................................................................4
1.2 Research purpose.............................................................................................................5
1.3 Problem statement:...........................................................................................................5
1.4 Research aims and objectives:.........................................................................................6
1.5 Research questions:..........................................................................................................6
1.6 Structure of the research paper:........................................................................................7
1.7 Research hypothesis:........................................................................................................8
Chapter 2: Literature Review...................................................................................................10
2.0 Introduction:...................................................................................................................10
2.2 Relationship between customer relationship management and customer retention.......12
2.3 Impact of customer relationship management for retaining the customers:..................13
2.4 Factors affecting in effective customer relationship management:................................15
2.5 Strategies on customer relationship management:.........................................................17
2.6 Relevant theories and models on customer relationship management...........................19
2.7 Literature gap:................................................................................................................20
2.8 Summary:.......................................................................................................................22
Chapter 3: Research Methodology...........................................................................................24
3.1 Research Philosophy......................................................................................................24
3.2 Research Approach........................................................................................................25

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3.3 Research Design.............................................................................................................26
3.4 Data collection and analysis...........................................................................................27
3.5 Sampling........................................................................................................................28
3.6 Reliability and Validity..................................................................................................29
3.7 Ethical consideration......................................................................................................29
Chapter 4: Findings and analysis.............................................................................................31
4.1 Quantitative Analysis.....................................................................................................31
4.1.1 Reliability test.............................................................................................................31
4.1.2 Descriptive statistics....................................................................................................34
4.1.3 Quantitative Questions................................................................................................37
4.1.3 Correlation...................................................................................................................61
4.1.4 Cross tabulation...........................................................................................................79
4.1.5 Regression analysis.....................................................................................................85
4.2 Qualitative analysis........................................................................................................89
Chapter 5: Conclusion................................................................................................................1
References..................................................................................................................................4

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(Topic: The Impact of Customer Relationship Management on Customer Retention, case
Study on Aramex)
Chapter 1: Introduction
1.0 Introduction:
After evaluating data of last five years it has been observed that organizations courier
service industry is facing immense challenges in maintaining their sustainable of business.
Lack of effective customer management system within organization is the primary reason due
to which customers are losing their loyalty day by day. This very specific research proposal
has selected Aramex as their chosen company. While evaluating in-depth case study on
Aramex it is however observed that the customers are showing the reluctance in using the
services from this company due to several issues. As a result, the organization is facing
immense challenges in maintaining their overall business sustainability. However, this very
specific study has focused to evaluate on how effective customer relationship management
can reflect a positive impact on customer retention. At the same time, some of the major
strategies of customer retention plan have also been critically evaluated in this research paper.
1.1 Background of the research
Aramex is one of the most prestigious international mail delivery and logistics chains
occupying recognizable place in UAE. Headquartered in Dubai the particular organization
has started their journey as a worldwide shipping solution at a competitive price. After the
company has expanded their wings in multinational boundaries, the business experts of
Aramex are facing several challenges in gaining customers’ loyalty. As a result, their
customers’ retention plan is getting immensely affected (aramex.com 2018). The primary
issue that Aramex is facing in retaining their customers is ineffective services. As this
organization is completely based on providing services and solutions the employees

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associated with the operations need to be very much technical and cooperative (Hwang and
Low 2012). After expanding their business in multinational countries, the business experts of
Aramex do not impose the employees in gaining Multilanguage competency. Customers
have to face challenges in interacting with the service providers. Major issue has been
identified that Aramex fails to deliver the services within proper stipulated time (Ahmad,
Wynn and Clarkson 2013). In this kind of situation, the entire method of product delivery is
getting late which ultimately leaves immense negative impact on the customers.
1.2 Research purpose
The primary purpose of the study is to critically analyse the impact of customer
relationship management on customer retention in context to the case study of Aramex. It
has been observed that Aramex fails to satisfy the needs and demands of the customers due
to several issues. Lack of service quality is one of the most effective reasons due to which the
business experts fail to meet the needs and demand of the customers (Voss 2012). On the
other hand, it has also been identified that the employees associated with the organization are
unable to communicate with the people of different cultural backgrounds and attitudes. As a
result, both the customers and services providers fail to make a good rapport with each other
(Kumar and Reinartz 2018). After identifying this concern, the business experts have decided
to implement customer relationship management strategies at the workplace for overcoming
this kind of major issues.
1.3 Problem statement:
The two identified business issues that have been selected for conducting this research
paper successful include customer relationship management and customer retention.
Customer relationship management is the dependent variable (Khodakarami and Chan 2014).
If the business experts are successfully able to follow customer relationship management, the
business experts can make an effective plan of managing and retaining customers. Aramex

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fails to satisfy the needs and demands of the customers due to several issues. Lack of service
quality is one of the most effective reasons due to which the business experts fail to meet the
needs and demand of the customers (Nguyen and Mutum 2012). After identifying this kind of
major issue the business experts have raised their concern on how customers’ loyalty can be
gained. The purpose of this very specific research is to understand on how Aramex needs to
adopt different customer retention strategies and policies for achieving business success. If
the business venture fails to fulfil the needs and demands of the customers, the entire process
of business faces challenges in reaching the peak of success (Ramchandani and Novitaz
2013). However, this very specific study has focused to evaluate on how effective customer
relationship management can reflect a positive impact on customer retention. At the same
time, some of the major strategies of customer retention plan have also been critically
evaluated in this research paper.
1.4 Research aims and objectives:
The research aims to explore the impact of customer relationship management on
customer retention in context to the case study of Aramex. The primary objectives of this
very specific study are as follows:
 To explore the impact of customer relationship management on customer retention
 To recognize the issues in customer relationship management process of Aramex
 To recommend effective customer relationship management strategies to Aramex for
retaining customers
1.5 Research questions:
 What is the impact of customer relationship management on customer retention?
 What are the major the issues in customer relationship management process of Aramex

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 What are the recommendations of effective customer relationship management strategies
to Aramex for retaining customers
1.6 Structure of the research paper:
The entire research paper is constituted with five major stages, which include
Introduction, Literature Review, Methodology, Findings and analysis and Conclusion and
Recommendation.
Chapter 1: Introduction:
In the very introduction chapter, the study has identified the research issue. The
primary concern of this very specific study is to evaluate the impact of Customer Relationship
Management on Customer Retention. Based on the identified research issue the study has
evaluated on how customer relationship management leaves positive impact in retaining the
customers (Choudhury and Harrigan 2014). Lack of service quality is one of the most
effective reasons due to which the business experts fail to meet the needs and demand of the
customers. After identifying this kind of major issue the business experts have raised their
concern on how customers’ loyalty can be gained.
Chapter 2: Literature Review:
Literature review is the critical evaluation of identified research issue by
incorporating the opinion of numerous research scholars. The primary purpose of
implementing customer retention plan is to render business sustainability. Without gaining
customers’ loyalty, the business organization can never retain customers. Without customer
retention plan the business experts are not able to expand their business in the overall global
market.
Chapter 3: Methodology

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In the part of methodology various tools have been used with the help of data is
gathered and evaluated. The limitation of the research paper is also been highlighted in this
very specific part.
Chapter 4: Findings and analysis
In this chapter, the researcher has made survey analysis with the help of which
participants have been directly involved with the identified research issue. The result of
survey is presented in this very specific part.
Chapter 5: Conclusion and recommendations:
In this very specific part, the study has provided overall findings of the result. Based
on the entire study major recommendations of improving customer relationship management
have been provided.
1.7 Research hypothesis:
H0: Customer relationship management has no major significance on overall customer
retention plan
H1: Customer relationship management has major significance on overall customer
retention plan
1.8 Summary of the research:
After evaluating the introduction part it can be summarised that the primary concern
of this very specific study is to evaluate the impact of Customer Relationship Management on
Customer Retention. The primary purpose of implementing customer retention plan is to
render business sustainability. Without gaining customers’ loyalty, the business organization
can never retain customers. This very specific research proposal has selected Aramex as their

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chosen company. While evaluating in-depth case study on Aramex it is however observed
that the customers are showing the reluctance in using the services from this company due to
several issues.
Major issue has been identified that Aramex fails to deliver the services within proper
stipulated time. In this kind of situation, the entire method of product delivery is getting late
which ultimately leaves immense negative impact on the customers. At the same time, some
of the major strategies of customer retention plan have also been critically evaluated in this
research paper. The study primarily aims to evaluate the impact of customer relationship
management on customer retention. After the company has expanded their wings in
multinational boundaries, the business experts of Aramex are facing several challenges in
gaining customers’ loyalty. As a result, their customers’ retention plan is getting immensely
affected. The introductory part has evaluated the overall structure of the study in brief, which
gives overall view about the entire structure of the research paper.

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Chapter 2: Literature Review
2.0 Introduction:
Literature review is one of the most significant parts of research paper which critically
evaluates the identified research issue from numerous points of views. While making a
critical literature review numerous eminent scholars show their own point of views. In this
very specific part, the study has focused to make detailed analysis on how customer
Relationship Management leaves a major significant impact on Customer Retention. Various
critical theories have also been evaluated in this very specific study. On the other hand, this
specific literature review has find out major gap at the end with the help of which the
researcher can overcome those gaps.
2.1 Overview on customer relationship management
Koegler et al. (2013) opined that Customer relationship management is a practice or
strategy that organizations use for managing and analyzing the customer interactions. In order
to gain customers’ loyalty the business experts have to implement effective strategies and
policies. If the customers do not their interest in purchasing products and services, the entire
business organization fails to achieve its business goals and objectives. In order to maintain
customer relationship management the business experts have to focus on improving various
spheres of business. Saarijärvi, Karjaluoto and Kuusela (2013) stated that various spheres
include marketing, sales and services. In order to grab the attention of customers and build a
good relationship with the customers marketing and promotion is one of the most significant
factors. With the help of effective promotional techniques, the customers from various
geographical boundaries and attitudes can get detailed overview about the product
components and their durability as well as product features. As a result, the customers do not

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have to face innumerable challenges in acquiring knowledge on the products. By using
various media tools, the marketing executives can make an effective rapport with the
customers.
Kirmaci (2012) opined that direct marketing is one of the most significant ways of
building customer relationship. Large number of business organizations is there which tend to
prefer direct marketing so that they can make a good rapport with the customers. On the
other hand, it has also been observed that the customer service managers can directly interact
with the service users and hare their point of views with customers. As a result, they can gain
immense trust on the customers. On the other hand, sales department is another sphere of
building customers’ relation. Soltani and Navimipour (2016) commented that if the
promotional methods become successful, the customer service executives do not have to face
challenges in selling their products. However, while selling the products the business
executives can make an effective rapport with the customers.
Tseng and Wu (2014) opined that effective customer service is another form of
building relationship, which ultimately reflects on overall business profitability. It has been
observed that organization while maintaining a good rapport with the customers tends to
deliver the services within proper stipulated time. On the other hand, it has also been
observed that good customer service always gains customers’ loyalty. As a result, business
executives always search for maintaining effective bond with the customers by showing their
managing and behavioural approaches. Rosman and Stuhura (2013) stated that the customers
would not have to face challenges in receiving their services if the business executives want
to share a good bond. It can be therefore concluded that customer relationship management is
one of the most effective parts of retaining customers at the workplace.