Academic journal article International Research Journal of Arts and Humanities

Impact of Customer Relationship Management Dimensions on Customer Outcomes: Evidence from Pakistan

Academic journal article International Research Journal of Arts and Humanities

Impact of Customer Relationship Management Dimensions on Customer Outcomes: Evidence from Pakistan

Article excerpt

Introduction

Customer relationship management (CRM) has gained much momentum in recent years to make performance of businesses more credible and trustworthy. Any organization who considers CRM activities and strategies in its priority list earns more loyalty from its customers which results in magnification of profitability and goodwill. The use of CRM and its dimensions helps in increasing value for the customers, long term relationships, customer satisfaction and retention along with enhancement of sales (Yim et al., 2004). Every business is trying to embrace customer centric models in the manufacturing concerns and service sectors. They are aware about the fact that CRM can put a benchmark in achieving the competitive edge by attracting the customers positively. Through proper identification of the dimensions of the CRM, superior customer' value can be attained which help in building sustainable quality relationship with the customers because the dimensions can cope up properly to evaluate the challenges of measuring performance parameters (Wang et al., 2004).

The terms relationship marketing and CRM go side by side in broader perspectives as both work in enhancing customer life time value (CLV) by maintaining relationships in the long run. Through profound Research and Development R&D it has been confirmed that when the measurement scale is properly tested and implemented, it results in accurate identification of the key issues, retention and satisfaction of the customers by bringing beneficial and value relationships with the customers (Sin et al., 2005). With the concept of value maximization, emphasis is made on the dual creation of value both for the customers and the firms. The continuous evolution from selling, marketing and profit earning concept of CRM arises because consumers now are involved in having total buying experience than buying the core product only. Different marketing ideas when interrelate with each other, it results in the up gradation of performance parameters through development of customer relationship management (DuNu & Hălmăjan, 2011).

Although the shift of focus from product selling to customer centric has helped a lot in enhancing the credibility of the businesses because traditional view of focusing of businesses on selling only has totally shifted towards making long term meaningful relations with consumers. The implementation of coordination of information in a systematic way for building value relationship with the customers results in emphasizing positive attitude towards commitment and overall company performance in optimistically mounting scale. Proper alignment of CRM compatibility along with the performance of organization and technology results in significant linkage between the economic performance (Reinartzet al., 2004) .With the dramatic up gradation in the field of CRM, immense growth has been observed in those organizations who opted these tools in their strategies to attain loyalty from the customers. So there are great chances of increasing the sales growth with the potential of having long run relationship with the customers (Nikhashemiet al.,2013).

This research has been done to explain the importance of CRM by broadening its clear perspective and interrogating the effect of the different dimensions of CRM through its outcomes. So it will further explore that how managers use the performance parameters of CRM to attain positive results. Different aspects are there in which companies fail to cater the needs of the customers systematically in order to provide them benefits. When the companies do not fully understand the decision making of consumers then profitability and performance of the business suffers a lot (String fellow et al., 2004). The secret of CRM lies in interacting with the customers by identifying their needs and thinking beyond the traditional way of selling. Great momentum has been observed in recent years which depicts that the dimensions of CRM significantly affects the customer outcomes and result in customer satisfaction which attains the retention of customers and increase the sales growth (Yim et al. …

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