Customer Relationship Management (CRM), Customer Satisfaction and Customer Lifetime Value in Retail

Abstract

The aim of this research paper is to understand how CRM affects customer satisfaction and ultimately Customer Lifetime Value (CLV) in retail industry. CRM is considered as an approach to manage customer relationships and other technological factors are not taken into consideration. The purpose of this study is to explore the impact of CRM on Customer Lifetime Value (CLV) as it is focused in various studies. CLV is an important issue for the retailer in the competitive environment. Issues for the Management are creating CLV and customer satisfaction for both the customer retention and repeat purchase as well as expanding customer base through word of mouth apraisals. A literature review in this field has been carried out to develop a conceptual model and draw conclusion. This review first looks into literature that deals with CRM and then dwells in literature on Customer satisfaction and how to manage repeat purchases through customer satisfaction management.