The University of Reading

Impact of Customer Relationship Management on customer retention, loyalty and customer service

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Date of submission

Project submitted in partial fulfilment of the regulations for the degree of MSC in (your degree name)

ABSTRACT

Customer relationship marketing (CRM) and relationship marketing in general are hot topics for managers and academics alike. Customer relationship management is a very important tool for any company to maintain a good and profitable relationship with its customers. Good and well-planned customer relationship management can many implications for a company, customer relationship marketing can have an impact on customer retention, customer loyalty, and customer service. These things can make a positive impact on the profitability of a company. In this research, we have tried to judge the impact of customer relationship management of a company on the customer satisfaction, loyalty, and retention. We have used quantitative research method to collect data and used the tool of questionnaire for the purpose.

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for the academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

TABLE OF CONTENTS

ABSTRACTII

ACKNOWLEDGEMENTIII

DECLARATIONIV

LIST OF CHARTSVII

CHAPTER 1: INTRODUCTION1

1.1 Introduction1

1.2 Problem Statement2

1.3 Research Questions2

CHAPTER 2: LITERATURE REVIEW4

2.1 Customer relationship marketing4

2.2 Customer Profitability6

2.3 Customer Lifetime Analysis7

2.4 Customer retention8

2.5 Customer loyalty10

2.5.1 The measurement of customer loyalty13

2.6 Customer satisfaction14

2.7 Linking customer retention, value, satisfaction, and loyalty15

CHAPTER 3: METHODOLOGY18

3.1 Introduction18

3.2 Overview of the research design19

3.3 Research Method and Design Appropriateness19

3.4 Informed Consent20

3.5 Confidentiality20

CHAPTER 4: DISCUSSION AND ANALYSIS21

4.1 Customer relationship management questionnaire analysis21

4.2 Customer satisfaction24

4.2.1 Ease of use of the product25

4.2.2 Product Delivery26

4.2.3. After sales service27

4.2.5. Overall satisfaction29

4.3 Customer retention and loyalty30

4.3.1. Question number 131

4.3.2. Question number32

4.3.3 Question number 333

4.3.4 Question number 434

4.3.5 Question number 535

4.3.6 Question number 636

4.3.8 Question number 839

CHAPTER 5: RECOMMENDATIONS AND CONCLUSION40

5.1 Recommendation for Future Studies40

5.2 Conclusion40

REFERENCES42

APPENDICES44

Appendix A: Customer relation management Questionnaire44

Appendix B: Customer satisfaction questionnaire45

Appendix C: Customer retention and loyalty questionnaire46

LIST OF CHARTS

CHART 1: CUSTOMER RELATIONSHIP MANAGEMENT SURVEY12

CHART 215

CHART 3: EASE OF USE OF A PRODUCT16

CHART 4: SATISFACTION AND EASE OF USE16

CHART 5: PRODUCT DELIVERY18

CHART 6: AFTER SALES SERVICE19

CHART 7: USER FRIENDLINESS21

CHART 8: SATISFACTION22

CHART 9: SUMMARY OF CUSTOMER SATISFACTION SURVEY23

CHART 10: OVERALL SATISFACTION23

CHART 1124

CHART 1225

CHART 1327

CHART 1428

CHART 1529

CHART 1631

CHART 1732

CHART 1834

CHART 1935

CHART 2036

CHAPTER 1: INTRODUCTION

1.1 Introduction

Customer relationship marketing (CRM) and relationship marketing in general are hot topics for managers and academics alike. Both the 2002-2004 and the 2004-2006 MSI Top Tier Research Priorities include topics in the relationship-marketing genre. The 2004-2006 MSI Top Tier Research Priorities for the customer management community identifies the key research topics including customer portfolio management, measuring and predicting lifetime value of a customer, segmenting and managing the customer relationship desired by the firm, managing and maintaining customers through multiple channels, and implementing and assessing the impact of CRM. Many organizations ...