MD - Sawon Hossain M19160204321

Jagannath
University
Course Code: EMKT-6402

Course Title: Customer Relationship Management.
Content of Assignment: Impact of CRM on developing customer
satisfaction and loyalty. Possible challenges of the successful
implementation of CRM in the service sector of Bangladesh.
Submitted To:
Mahjabeen Ahmed
Assistance professor
Jagannath University, Dhaka, Bangladesh.
Submitted By:
Name: Sawon Hossain
Batch: 16TH (A)
ID No: M19160204321
Date of Submission: 29 October, 2020.
Introduction
Customer Relationship Management (CRM) is a “concept that is based on the
philosophy of using a combination of customers and marketing for relationship
building”
Dowling argued that developing a relationship with customers is the best way to gain
their loyalty. Customer loyalty refers to a consideration paid to the amount of buying
for a given trademark
Business organizations, such as banks, insurance companies, and other service
providers, have been aware of the significance of CRM and its potential in helping
them to capture new customers, retain existing ones, and maximize their lifetime
value. Ibrahim, Hamid, Babiker, and Ali.
Background of the study
In the part of literature review will emphasize on the basis theories which are relevant
to the customer relationship management. This research contains the motivation
theory, staff training, customer satisfaction and customer loyalty.
By achieving this research purpose, this research employs secondary and primary
data. The primary data was acquired by a questionnaire survey which is the
methodology of this research. Regarding to the questionnaire for staffs, there are 20
respondents who participated in this research as well as there are 100 respondents
who walk into and eat at Thai square restaurant who responded to the questionnaire
for customers. The sample size of this research is Thai square restaurant (Minories).
To conduct this research researcher used both primary and secondary data achieved
by self-administered questionnaire. By analyzing primary data from the questionnaire,
the SPSS and Microsoft Office excel was used to achieve it. The statistical method
was applied to analyze the result of this research. The results illustrate what factors
could gain customer satisfaction, how successful the staff performance after being
trained, how well staff can achieve companies€™ objectives.
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Objective of the study
The objective of this research is to provide the strategies which can be employed by
company in order to establish customer satisfaction and customer loyalty and to
improve employee€™s performance to achieve objective in the future.
The objectives are:
1. To evaluate the customer satisfaction which may lead to customer loyalty?
2. To explain the relationship between motivation of staff and staff training as well as
their effectiveness to improve customer service in order to satisfy customer
3. To establish the appropriate strategies for restaurants in terms of customer

relationship management.
Literature Review
As a result of competitive business situation, many businesses need to pay attention to

the new method in retaining and creating new customers. Customer loyalty lead to
profitability. Companies should develop positive relationship with customers by
increasing customer satisfaction. Since customer satisfaction has been an important to
establish long “term relationships which may result in customer loyalty and long “run
businesses. It is widely known that the cost of retaining an existing customer is much
cheaper than attaining a new customer.
Topic Part
After establishing customer loyalty as an important variable in retaining customers,

we will now move on to look at various strategies used by businesses
The past decade has seen many firms readopt a customer focus- often through a
formal program of customer relationship management (CRM). Recent advances in
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information technology have provided the tools for marketing managers to create a
new generation of CRM tactics. One such tactic that thousands of firms have
considered and which many have adopted is to establish a customer loyalty program.
Example of these schemes can be found in Japanese retailing, US airlines and hotels,
French banks, UK grocery stores, German car companies, Australian
telecommunications, Italian fashion stores, US universities and many other areas.
Typically these programs offer financial and relationship rewards and in some
instances benefits also accrue to third parties.
Findings of the study
Under this section, we will move on the broad classification of CRM into five broad
categories. Next we will discuss the importance of CRM in retaining customers
through customer satisfaction and customer loyalty. Ultimately, all these will affect
the customer’s life time value to an organization and contribute to its profitability.
Next, we will also discuss the various strategies and programs used by organizations
to achieve this, such as loyalty programs, relationship quality and pricing and see it
effects on customer loyalty.
Recommendation of the study
There are some recommendations of this study. Those are given bellows…..
1. To improve the customer services.
2. To improve the value of goods and services.
3. To provide good customer services.
4. To improve the customer loyalty
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Conclusion
The goal of this paper was to theoretically access the impact of customer relationship
management on customer satisfaction and customer loyalty based on the review of
existing literature. Various CRM factors have been identified that are closely linked
with customer satisfaction and loyalty. The study demonstrates that CRM has a direct
and positive relationship with customer satisfaction and customer loyalty. Customer
loyalty also has a positive relationship to customer satisfaction. CRM factors are
supposed to have a signed cant impact on customer satisfaction and loyalty.
References
Boone, L., and Kurtz, D. (2013). Contemporary marketing. Cengage Learning. Bruhn,
M. (2009). Relationship Marketing. Vahlen Munchen.
Iriana, R., Buttle, F. and Ang, L. (2013). Does organizational culture influence
CRM’s financial outcomes? Journal of Marketing Management, 29(3/4), 467–93. 11
Cameron, K.S. and Quinn, R.E. (1999). Diagnosing and changing organizational
culture. Reading, MA: Addison-Wesley
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Introduction
Customer Relationship Management (CRM) has recently become a vital issue for
both researchers and professionals as the driving force of the organizational
performance. Several studies conducted by both academician and researcher yielded
some interesting insights but till date, the extant literature on CRM seems to be very
confusing, inconsistent and lack of common conceptualization. There is an urgent
need for extending the concept of CRM considering the different domain of it.
Thus, to help advance an adhesive body of knowledge on this issue of growing
interest among practitioners and academician,
Bangladesh has been experiencing an impressive stable economic growth for the last
two decades despite the challenges emerged from global economic recession, is also
in the queue of potential countries to be graduated from Least Developed Country
(LDC) category. In line with the Istanbul Programmed for Action the country
achieved a remarkable achievement in poverty reduction, human and social
development, Information and Communication Technology domestic resource
mobilization, trade expansion and private sector development, infrastructural
development, environmental sustainability and vulnerability reduction to the variety
of shocks during last five years.
Background of the study

Customer Relationship Management (CRM) has been called an inevitable
-literally relentless-movement in marketing literature (Peppers & Rogers, 2004).
It has gained the a ention of academician and practitioners in recent years that
ensures high profit through customer satisfaction, customer loyalty and
customer retention. It is generally thought that CRM creates a competitive edge for an
organization and positively impacts on firm performance (Sin, Tse, & Yim,
2005). CRM represents the way customers want to be served, and offers a more
effective and efficient way of conducting business (Peppers & Rogers, 2004).
Today, companies are striving to realize the deferent value of customers and they are
designing and offering the products and services accordingly. Customer
Relationship Management (CRM) has its roots in relationship marketing that have
been increasingly studied in the academic marketing literature (Berry 1995,
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Sheth & Parvatiyar 1995). CRM is an integrated approach by which organization can
create, develop, and enhance relationships with carefully targeted
customers which ultimately increases customer value and accelerates firms'
financial and nonfinancial performance (Anton & Hoeck, 2002
Objective of the Study
In a study on relationship marketing, the

banking sector has been selected because
of the fact that a great
deal of research has increasingly
emphasized on the strong competitive
pressure leading the financial
institutions to revise their marketing
strategies and to utilize their long-lasting
relationships with customers.
Based on Tyler and Stanley (2001), recent
studies have shown that the corporate
banking customers still deem
personal relationships as the prime
mode of communication. Due to this
and also because of relationship
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marketing being considered “strategically
imperative in the modern financial sector”
(Berry et al, 2002, p.15),
this study wishes to identify the most
critical success factors of post-
implementation relationship marketing
for the private banking sector in
Bangladesh and also intends to find out
the most important critical success
factor along with the way to retain
sustainability through relationship
marketing for the private banks as well.
To comply with the research objective the
research questions are as follows:
 What are the post-implementation
critical success factors of relationship
marketing for the private
banks in Bangladesh?
 What is the most important factor
among them?
 How can the relationship marketing
bring sustainability for the private banking
sector in Bangladesh?
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(Berry et al, 2002, p.15),
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among them?
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(Berry et al, 2002, p.15),
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among them?
(Berry et al, 2002, p.15),
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among them?
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(Berry et al, 2002, p.15),
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among them?
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(Berry et al, 2002, p.15),
among them?
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(Berry et al, 2002, p.15),
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among them?
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(Berry et al, 2002, p.15),
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among them?
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(Berry et al, 2002, p.15),
among them?
In a study on relationship marketing the services sector has been selected because of
the fact that a great deal of research has in crassly emphases of the strong completive
pressure leading the services industry to revise their marketing strategy and the utilize
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the long lasting relationship with customers. Recent study has shown that the
corporate services customer steel demand personal relationship with the prime mode
of communication. Due to this and also because a relationship marketing based
considered the modern services sector in Bangladesh.
Literature Review
The literature review of the previous studies examined relationship on
Intermediate metrics such as customer satisfaction and loyalty such as (Mithas,
Krishnan & Fornell, 2005), customizing product and service (Stefanou,
Sarmaniotis & Stafyla, 2003), customer retention and profitability (Ryals & Knox
2001), or link between satisfaction and business performance
(Kamakura, Mial, Rosa & Mazzon, 2002), the link between customer loyalty
and profitability (Reinartz & Kumar, 2000), customer profitability heterogeneity
(Niraj, Gupta & Narashimhan , 2001), and customer loyalty programs (Verhoef,
2003).
The literature on the resource-based view of the firm explores that having
heterogeneous resources to firms ensures competitive advantage of the firms
(Srivastava, Shervani & Fahey, 1998). Although CRM has its roots in
relationship marketing whose major objective is to have a sustainable long-term
portable relationship with its customers but most of the firms have failed to
deploy their resources electively to maintain a relationship with their
customers and fail to achieve expected business performance even aver
investing massive amount on CRM (Reinartz et al., 2005, Awasthi & Sangle,
2012).
However, there are very few studies that focus on the how to develop firms
capabilities to adopt and implement CRM and how to deploy the resources to
CRM to match with the current changing market condition. Drawing on the
resources based view and firm capabilities, I have addressed the gap that
possession of resources by the firms will increase the capability to adapt and
implement CRM in the firm that ultimately boosts business firm performance.
Previous studies on CRM are limited to explore CRM practices in a particular service
industry like banks, insurance, non-financial institutions or leasing company, retail
industry, and hospitals and so on. Although CRM increases firms' profitability and
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ensures competitive performance, previous studies focused the importance, processes,
and strategies of CRM rather than cause and effect
relationship between CRM and firm performance (Jenssen, 2003, Grewal &
Haugsteer, 2007). Very few studies are conducted to know the relationship
between CRM and firm performance that incorporated the different
dimensions of CRM and relationship among those of dimensions and firm
performance. However, the impact of CRM implementation on firm
profitability has not received sufficient attention from academics (Ramani &
Kumar, 2008). Therefore, it is necessary to fill the literature gap by examining the
relationship between the implementation of CRM in different firms and its impact on
firms' performance. Considering the situation, the key contribution
of this study is to conceptualize and operationalize CRM constructs from
different dimensions. In particular, the author focuses on the functional and
organizational competencies that are required to implement the CRM
effectively and efficiently in firms. Then the author investigates the association
Between CRM and firm performance.
To comply with the research objective the research questions are as follows:
 What are the post-implementation critical success factors of relationship
marketing for the private banks in Bangladesh?
 What is the most important factor among them?
 How can the relationship marketing bring sustainability for the private banking
Topic Part
The goal of the this study was (1) to conceptualize and operationalize the
dimensions of CRM to implement the CRM process effectively and (2) to
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measure whether the impact of CRM is positive or negative on firm
performance. The results from this empirical effort based on survey from some
executives of some renowned firm operating in Bangladesh ushers some
Notable findings. The data collected from the executives of different firms
Provide strong support to conceptualize the CRM construct. The author has
Developed six constructs which are organization around CRM (organizational
alignment), CRM based technology so ware websites, tracker and other CRM
Findings of the study

The findings suggest that customer relationship management implementation in
business for customer satisfaction include attractive activities which are quality
service, commercial practice and loyalty programs such as personal contact, service in
time, complaints handling for resolving and promotional offers for both existing and
potential customers.
Now a days, organizations are collecting all kinds of contact information of existing
or potential customers for both business to business (B2B) or business to customer
(B2C) commercial sectors to promote sales, post sales, after sales services, instant
online support, physical support etc. Organizations conduct frequently with customers
for promoting them and pursuing to purchase products or services through phone
calls, emails, sms and physical contact. Personal contact is very strong marketing
process for expanding market and makes customer loyal to the organization.
Bangladesh is also practicing these strategies to make wide market with better
customer satisfaction and most of the renowned organizations are doing well to
implement CRM.
To provide service in time is very important for satisfying customers. The practice of
service in time has started here in Bangladesh. It may be product or service delivery,
phone call or feedback call, replying of email or sms, but it should be in time for both
business to business and business to customer dealings. Some organizations are
providing services over phone for 24hours/365days to make customers happy. All
kinds of customers would like to get services in time for their continuous
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performance. In rural area, the customers also want quality service in time.
Organizations are trying to provide service in time to the customers and it’s
improving with time.
To satisfy the customer, organization should handle the complaints with care.
Complaints handling is one of the imperative task of CRM unit of the organizations.
Every complaint should take care with cordially and also allege to concern department
for future development of products or services. Some organizations like insurance and
financial institutions are sending team physically to investigate complaint or any
objection. The purpose of complaints handling should be to make satisfy the
customers and a happy or satisfied customer is better than hundred times
advertisement in any media. Many organizations of Bangladesh are escalating on
customer relationship management day by day with time. Most of the organizations
are holding one or more communication channels like hotline number, email ID, toll
free number etc. to receive complaints from the customers to solve properly.
Recommendation of this study

This study also incorporates three other dimensions of CRM process such as
Knowledge management, business architecture and human analytic capability.
Results show a significant impact of these dimensions on CRM outcomes like
business performance. Knowledge management’s vital issue in CRM
implementation process as it help the managers to gather, analyze the customer
data and convert these data into information to take the decision. Human
analytic capability and business architecture has also positive impact on
business performance. Human are the basic component who interact with the
customers through different ways. The managers should focus on recruiting,
training and developing the employee to more efficient and effective in
interacting with the key customers
Conclusion
Although the study provides us interesting findings but there is some
limitations. First, this study was conducted based on the four dimensions
Developed by Sin et al. 2005 and with two additional dimensions developed by
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Coltman et al., 2011 only. In a changing business environment firms are
adopting new strategies for their business as customers demand is changing gradually.
This study can be expanded incorporating other dimensions of CRM used by different
firms in different context.
References
Achrol, R. S. (1991). Evolution of the marketing organization: new forms for
turbulent environments. The Journal of Marketing, 77-93.doi: 10.2307/1251958
Ahmed, P. K., & Rafiq, M. (2003). Internal marketing issues and challenges.
European
Journal of marketing, 37(9), 1177-1186.doi.org/10.1108/03090
560310498813
Anton, J., and Hoeck, M., (2002), e-Business Customer Service,The Anton Press,
Santa
Monica, CA.
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Jagannath

Course Code: EMKT-6402

Background of the study

The objectives are:

1. To evaluate the customer satisfaction which may lead to customer loyalty?

3. To establish the appropriate strategies for restaurants in terms of customer

As a result of competitive business situation, many businesses need to pay attention to

After establishing customer loyalty as an important variable in retaining customers,

Findings of the study

Recommendation of the study

1. To improve the customer services.

2. To improve the value of goods and services.

3. To provide good customer services.

4. To improve the customer loyalty

M. (2009). Relationship Marketing. Vahlen Munchen.

Background of the study

Objective of the Study

In a study on relationship marketing, the

Findings of the study

Recommendation of this study

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