Abstract
The purpose of this study is to determine the impact of customer relationship management (CRM) components on customer loyalty of a firm. The three components of CRM in this study are customer knowledge, customer orientation, and technology capability. A structured questionnaire with a 5-point Likert scale was used to gather the data by conducting a survey. The sample size is 200 and chosen on a convenient basis. Indicators were generated based on the literature review. Data were analyzed by using PLS 3.0 software. The key finding is that customer loyalty is negatively impacted by the CRM component, customer knowledge. On the other hand, the impacts of customer orientation and technology capability on customer loyalty have been found to be significant and profound. This study adds to the existing pool of knowledge on CRM components and customer loyalty from the perspective of the Bangladesh banking sector. The findings may facilitate bank officials and can be used as a strategic instrument for cultivating customer loyalty in the Bangladesh context.
Highlights
In India (Uppal, 2008; Sharma & Goyal, 2011) and Pakistan (Hussain et al, 2009; Hasan et al, 2015), studies have already been conducted regarding customer relationship management (CRM). Such studies have entirely been missing from the context of Bangladesh. With these aspects into consideration, the objective of the present study is to identify the impact of CRM constructs of the study, customer knowledge, customer orientation, and technology capability on customer loyalty
The survey consisted of questions directed at comprehending the insight of customers on CRM components and its probable influence on customer loyalty
The questionnaire consisted of 18 items that measured the CRM components and customer loyalty
Summary
OF THE STUDYThe banking industry has become one of the key pillars of Bangladesh’s economy due to its significant contribution to development. It is subjected to changing regulatory, structural, and technological factors and to withstand these changes, financial organizations need to cultivate customer-oriented strategies aimed at maintaining. Pareto’s 80/20 Law claims that the top 20 percent of customers contribute 80 percent of profit for the business. Firms aiming for profit should retain the top 20 percent of customers by preventing them from defecting. Firms can achieve these statistics by implementing practices of CRM, which primarily purports to cultivate prolonged relationships with customers by comprehending the factors that impact customer retention and loyalty (Nguyen & Mutum, 2012). The three components of CRM in this study are customer knowledge, customer orientation, and technology capability
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