Impact of e-CRM Implementation on Customer Loyalty, Customer Retention and Customer Profitability for Hoteliers along the Vaal Meander of South Africa

Abstract

The research approach is to appraise the impact of electronic customer relationship management (e-CRM) on customer profitability as mediated by customer loyalty and customer retention within the hotel industry sector of South Africa, and specifically for those hoteliers along the Vaal Meander. A sample of 341 middle to senior managers at various hotels was interviewed as respondents in this study. The objective of the study was to find the impact relationship between effective e-CRM implementation, customer loyalty, customer retention and customer profitability. The findings of the study add value to hotels in South Africa, and provide some invaluable statistical results essential for hotel managers and owners to successfully enhance customer loyalty, customer retention and customer profitability. By applying both confirmatory factor analysis (CFA) and structural equation modelling (SEM), the results of our study identified and provide path analysis of the significant factors; and enumerated among the factors, those critical inter-component relationships within this highly competitive industry. This study’s findings add to the body of knowledge and enable the managers of this sector to implement e-CRM in the best shape possible, to match it with South African market-needs thereby creating more loyal and repeat clientele. The future proposed further studies are also provided DOI: 10.5901/mjss.2014.v5n16p175