Introduction

CRM Dimensions/Constructs: Sin et al. (2005)

Testing of Model

Structural Equation Results

Conclusions and Implications

Limitations and Future Research Directions

References

Abstract

Maintaining collaborative relationships of a business firm with the customer is very important in the contemporary competitive business scenario, besides the service rendered by it. Against this backdrop, the study was undertaken which aims to analyse the customer relationship management (CRM) practices and dimensions in the business. The past research studies were reviewed and the CRM frameworks given by the various authors, in particular of Sin, Tse, and Yim (2005, European Journal of Marketing, 11(12), 1264–۱۲۹۰), were critically examined. The research article based on the study revisited the four behavioural dimensions of CRM. A total of 225 respondents were conveniently contacted from banks and hotel establishments. In view of the challenges faced by the business organizations in the contemporary scenario, in particular in the service sector, this article identified and discusses ‘customer prospecting’ and ‘personalization’ as additional practices/dimensions that need to be incorporated to design a robust CRM framework which has been presented as revisited model. Structural equation modeling (SEM) had been used to validate the revisited model. These dimensions, though need to be ratified in the future research.

Introduction

Customer relationship management (CRM) is one of the paramount business approaches that enable firms to understand ever changing preferences of customers to induce their behaviour. It involves result-oriented dialogue between an organization and its customers. This is done to improve and increase the customer acquisitions, customer retention, their profitability and positive relationship between firms and clients (Al-hawari, 2015; Hassan, 2018; Heinonen, 2014; Jan & Abdullah, 2014; Maggon & Chaudhry, 2018; Padmavathy, Balaji, & Sivakumar, 2012; Thakur, 2014). Both relationship marketing and CRM are much similar to each other and are used in the maintenance of customer relations (Parvatiyar & Sheth, 2001). However, the trust that is built by the quality of relationship between the seller and the buyer has been the main source of relationship marketing (Huang, 2015). Thus, the relationships so developed benefits both firms and customers (Filip, 2013; Ku, 2010; Lin, Chen, & Chiu, 2010; Maggon & Chaudhry, 2015; Mechinda & Patterson, 2011). Owing to the successful effects of adopting CRM, majority of business organization have focused their attention to utilize CRM (Akroush, Dahiyat, Garaibeh, & Abu-Lail, 2011; Mohammad, Rashid, & Tahir, 2013; Rahimi, 2017; Santouridis & Veraki, 2017). Also, the extent to which organizations are committed in building and maintaining relationship with client determines market competitiveness. This guides the top management about customer’s behavioural intentions (Mehta, Sharma, & Mehta, 2010). Therefore, for effective and solid customer relations, firms need to implement CRM widely in its settings (Chang, Park, & Chaiy, 2010). The key aspect of CRM is customer differentiation; CRM framework needs to recognize the differing needs of customers.