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The Effect of Customer Relationship Management on Customer Retention: The Mediating Role of Customer Satisfaction and Effective Commitment

. Dr. Naveed Hussain Shah , Waqar Khalid , Dr. Adnan Ahmad , Jawad Abdul Ghaffar and Muhammad Tahir


Abstract

Customer relationship management (CRM) practices are business strategies aimed at reducing costs and increasing the profitability of organizations by strengthening customer loyalty. In this study, we investigated the critical factors that determine customer retention and developed effective CRM practices for sustainable customer retention management in the telecommunication industry using Zong as a case study. Well-structured questionnaires and personal interviews were used to test the study's hypotheses. A sample of 100 management students with Zong connections was selected, and linear regression analysis was conducted for empirical purposes. The empirical findings demonstrate that CRM practices positively and significantly affect customer retention. The empirical findings also demonstrate that customer relationship management practices positively and significantly affect customer satisfaction and effective commitment. The study recommends maintaining sustainable customer relationships to help businesses retain existing customers. Therefore, managers need to look at customer relations beyond the technological features of CRM to satisfy and retain customers.
Keywords: Customer relationship management; Customer retention; Telecommunication industry; Customers; Zong Peshawar.
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