Dimensions of CRM Effectiveness and its Effect on Relationship Quality

Abstract

Despite numerous studies in customer relationship management (CRM), research into CRM effectiveness is limited. The purpose of this study is to first identify the dimensions of customer relationship management effectiveness (CRME) and then investigate the effect of CRME dimensions on customer satisfaction, customer trust and customer commitment. Based on a sample of 458 Indian retail bank customers, the study has identified four dimensions of CRME, namely, reliability, process focus, customer focus and technology focus. It is found that CRME dimensions positively influence customer satisfaction; customer satisfaction positively affects customer trust and customer trust has positive effect on customer commitment. The study findings imply bank mangers that orchestration of all the four dimensions will increase the effectiveness of CRM practices and foster in enduring relationship with customers.