Professional Documents
Culture Documents
Semester: II
Submitted by
SEJAL RAGHUWANSHI
UGB 22-52
Submitted to
PROF. RAMAN TIRPUDE
Assistant Professor of Management
MAHARASHTRA NATIONAL LAW UNIVERSITY, NAGPUR
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TABLE OF CONTENTS
Sr. No. Particulars Page
No.
1 Literature Review 3
2 Abstract 5
3 Introduction 6
4 Research Design 6
5 DIFFERENT TYPES OF 7
CRM
6 FACTORS THAT 7
CONTRIBUTE TO CRM
8 EFFECT OF CRM ON 10
CONSUMER
SATISFACTION
9 EFFECT OF CRM ON 11
CONSUMER LOYALTY
10 STEPS TO DEVELOP 12
CRM STRATEGY
11 Conclusion 13
12 Recommendation 13
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LITERATURE REVIEW
1 Rana Saifullah Hassan, Aneeb Nawaz, Maryam Nawaz Lashari, Fareeha Zafar, “Effect of Customer Relationship
Management on Customer Satisfaction”, 2015 Vol. 23, pp. 563-567,
2 Nidhi Agrawal, “The importance of CRM in Increasing Consumer Satisfaction”, Dec 29, 2022
3 Amanda Strouse, “How Does A CRM Help to Increase Customer Satisfaction?” March 30, 2020.
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Kashmir's hospitality industry. The findings showed a substantial and favorable association between
the CRM organization, managerial knowledge, and customer orientation characteristics and customer
happiness. The magnitude of this effect is quite small, even if the data also show a large positive
impact of CRM-based technology on customer satisfaction.4
5. “A THEORETICAL REVIEW OF CRM EFFECTS ON CUSTOMER SATISFACTION
AND LOYALTY” is an article written by Kamrul Islam Shaon, S. M., Rahman, H.. This article's
goal is to logically investigate the CRM agenda that has recently taken over the commercial world. It
examines the CRM agenda at organizational interfaces and its efficacy in promoting customer
satisfaction and loyalty. Customer loyalty and satisfaction have been found to be highly correlated
with a number of CRM characteristics. The study shows a direct and advantageous link between
CRM and customer loyalty and satisfaction. Client satisfaction and customer loyalty are positively
correlated. Customer loyalty and satisfaction are expected to be significantly impacted by CRM
characteristics. The study identifies the CRM process's constituent parts as well as the connections
between CRM, customer happiness, and customer loyalty. The writers outline the advantages that a
successful CRM deployment can bring about.5
6. “Effects of CRM on Consumer Satisfaction” is a paper written by Dheeraj Anchuri. The goal
of the study was to determine whether customer relationship management (CRM) is effective at
attracting and keeping consumers at Chai Point, India. According to this study, there is a considerable
association between customer relationship management and customer satisfaction. The study came to
the conclusion that CRM plays a significant role in growing market share, improving employee
morale and productivity whilst also simultaneously improving in-depth consumer experience and
customer satisfaction, leading to improved customer loyalty. Companies will also have a clear
understanding of who their customers are, what they need, and how it will make them more content.6
7. “The Effect of Customer Relationship Management, Customer Value and Dimension of
Service Quality on Customer Satisfaction and The Impact on Customer Loyalty of PT. Bank
Tabungan Negara (Persero), Tbk Kas Siteba Padang Office” is a study conducted by Alwa
Pascaselnofra Amril, Yunia Wardi, Erni Masdupi and Alwa Pascaselnofra Amril. The purpose of this
study was to explain and assess the relationship between customer relationship management,
4 Maraj Rahman Sofi, Irfan Bashir, Mohammad Ashraf Parry and Altaf Dar, “The effect of customer relationship
management (CRM) dimensions on hotel customer’s satisfaction in Kashmir”, 13 September 2020.
5 Kamrul Islam Shaon, S. M., Rahman, H., “A Theoretical Review of the CRM Effects on Consumer Satisfaction and
Loyalty” 2015
6 Dheeraj Anchuri, “Effects of CRM on Consumer Satisfaction”, 2018
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customer value, and service quality as an intervening variable that affects customer loyalty. The
study's findings indicate that customer happiness is significantly influenced by customer relationship
management, customer value, and the quality of the services they receive. Customer loyalty is
significantly influenced by customer value, service quality dimensions, and customer happiness in
customer relationship management.7
8. “The Effect of Customer Relationship Management on Customer Satisfaction and Customer
Loyalty” is an article written by Dewa Made Haryandika. This research aimed to determine the
impact of customer satisfaction and customer relationship management (CRM), which can be defined
as commitment, communication, and excellent service. This indicated that the impact of CRM on
customer satisfaction, the impact of customer satisfaction on customer loyalty, and the impact of
CRM on customer loyalty were all substantial.8
ABSTRACT
Customer expectations have skyrocketed during the past few years across all corporate sectors. The
majority of industries, including FMCG, vehicles, travel, and tourism, give customers a wide range of
options. Customer service is now essential to any organization due to this tendency. Businesses must
keep a good relationship with their customers in an extremely competitive industry. The research
study would analyze various ways and techniques for developing successful CRM to satisfy the
customers. A solid CRM programme aids a business in satisfying the customer. According to this
study, customer relationship management significantly affects customer satisfaction. The study came
to the conclusion that CRM plays a significant role in growing market share, improving productivity
and employee morale, while also enhancing in-depth customer knowledge and customer satisfaction,
which will lead to improved customer loyalty. Companies will also have the knowledge of who their
customers are, what they need, and what will make them happier.
INTRODUCTION
7 Alwa Pascaselnofra Amril, Yunia Wardi, Erni Masdupi and Alwa Pascaselnofra Amril, “The Effect of Customer
Relationship Management, Customer Value and Dimension of Service Quality on Customer Satisfaction and The Impact
on Customer Loyalty of PT. Bank Tabungan Negara (Persero), Tbk Kas Siteba Padang Office”, 2018
8 Dewa Made Haryandika, “The Effect of Customer Relationship Management on Customer Satisfaction and Customer
Loyalty” May 2021
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Throughout the customer lifecycle, businesses manage and analyze customer interactions and data
using a combination of practices, strategies, and technology known as customer relationship
management (CRM). The objective is to enhance client connections, help with customer retention,
and promote sales growth. CRM systems gather customer information from various customer-
business interactions, such as those that occur via the phone, live chat, email, direct mail, social
media, and other channels such as the corporate website. CRM systems can also provide staff
workers who interact with consumers with thorough information about their personal data,
purchasing history, preferences, and issues.9
The concepts, procedures, and guidelines that a corporation adheres to when communicating with its
consumers are referred to as customer relationship management (CRM). This complete connection,
as seen from the organization's perspective, includes direct interactions with customers, including
sales and service-related procedures, forecasting, and the examination of consumer trends and habits.
CRM's ultimate goal is to improve the customer's experience in general.
Customer relationship management refers to the values, procedures, and standards that an
organization adheres to when dealing with its clients.
CRM is a term that is frequently used to describe IT firms and platforms that assist in managing
client relationships outside of the company.
Software, cloud computing, and artificial intelligence are three key areas of CRM technology
growth.10
RESEARCH DESIGN
Research Aims and Objectives
● To understand the meaning of CRM.
● To analyze the effects of CRM on consumer satisfaction.
● To analyze various ways and techniques for developing successful CRM to satisfy the
customers.
Research Questions
● What is the meaning of CRM?
● What are the effects of CRM on consumer satisfaction?
9 Wesley Chai, Tim Ehrens and Karolina Kiwak, “CRM (Customer Relationship Management)” September, 2020.
10 Marshall Hargrave, “What is a CRM? Customer Relationship Management Defined” September 2022
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● What are the various ways and techniques for developing successful CRM to satisfy the
customers?
Research Methodology
The present study is based on qualitative data. The research methodology adopted is descriptive.The
data has been collected from the official records, government websites, articles and research papers
according to the needs of the study. This study will be gathering secondary sources from books,
journals, government gazettes, appropriate websites, and other sources in addition to using the
descriptive research approach.
11 Scott Clark, “4 WAYS A CRM CAN IMPROVE THE CUSTOMER EXPERIENCE” October 30,
2020
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component of customer satisfaction. The difficulty is in realizing that every customer has
different wants. Each customer will have a viewpoint on your goods and services. As a result,
you must comprehend the consumer personalities and then provide for their needs. CRM aids
in improved customer comprehension by recording all identity and behavioral data. Then, you
may use this information to enhance your service and merchandise.
2. Communication between channels: You can enhance the customer's effective
communication with the aid of a CRM platform. Many individuals continue to enjoy
interacting on the phone, even though Individual tech-savvy consumers will reach the site via
email or chat. Nevertheless, going to the shop or workplace is no longer an option because of
the ongoing pandemic. Individuals may therefore look for video calls. Younger customers
might like contacting firms via social media for questions and help. Customers occasionally
change the channel in the middle of a discussion. They can start off by sending an email and
continue through a call or instant message. HubSpot reports that 33% of customers find it
irritating to be asked to restate their reason for contacting customer service. Hence, having
cross-channel communication and a communication framework are essential. It demonstrates
the value of CRM in tying together many communication paths for a fluid experience.
3. Personalization: No consumer enjoys seeing advertisements for goods and services they do
not need. Brands must therefore concentrate on focused marketing. Using a tailored strategy
allows brands to increase conversion rates by 8%. This involves giving clients relevant
discounts and only sending them pertinent newsletters and emails. Using a CRM for
comprehending and segmenting consumer records depending on their choices is the best way
to personalize communication.
4. Consumer service: On the basis of their post-purchase experience, customers frequently
make additional purchases. Suppose you purchase a bike. You get in touch with the shop a
few months later to exchange a dull cassette, only to discover that they are out of inventory.
Customers are more inclined to buy products from firms who offer them thorough after-sales
assistance. The brand or the retailer should preferably maintain a relationship with the
customer. They ought to inquire about any issues the client may be encountering.
5. Management Over Purchasing: Consider a customer who has been saving up for a purchase
only to discover that your business or the company no longer carries it. This not only irritates
them, but it also makes me think poorly of the brands. Brands must improve their ability to
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anticipate client requirements. They could, for example, look into current market
developments, social media posts, and investigate demands in the market.
6. Solving Issues and Preventing New Issues: Customer happiness stems from both addressing
their current difficulties as well as avoiding them from occurring in the future. Even when the
support staff may not address the problem right away, customers want a quick response from
them. Customers also anticipate that companies will use feedback from help calls to prevent a
recurrence of the issue.
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4. One Stop storage of data: Your CRM system's centralized database houses all the data you
possess regarding a customer or prospect, including data on orders, services, agreements, and much
more. Consumers may reach your business by phone, email, or social media, but a CRM will make
that information available to all of your staff. The positive customer experience is made better by any
service representative's rapid access to this data.
5. Improving Knowledge of customers: Your CRM system will keep track of the products that
customers have bought, looked at on your website, or enquired about on social media. You can use
this data to comprehend your clients' needs and potential interests in complementary items. You can
provide an effective product portfolio to them or email them about just a solution that fits their needs.
Providing individualized care can boost customer satisfaction.
Managing inquiries on social media platforms
Social media is currently used by over 65% of customers for customer care, making it a crucial
source of information for your business. From all of your social media profiles, your CRM system
may gather customer inquiries or remarks and transfer them to a single database. By doing so, you
can ensure that no question or problem goes unanswered and that everyone who tweets or posts gets
the consideration they deserve. Customers will continue to have a positive interaction with you if you
monitor social media posts linked to your brand and respond accordingly.
satisfaction and brand loyalty.
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base, many businesses place more emphasis on acquiring new customers. The retention of current
consumers has, however, surpassed the attraction of fresh ones in importance as a result of the
intense competition among businesses. In recent years, firms have learned that a major success
component is not a single transaction, but the building of a long-term connection by the methods of
CRM.12
12 Kocoglu, D., and Kirmaci, S., “Customer Relationship Management and Customer Loyalty; A Survey in the Sector of
Banking”, International Journal of Business and Social Science, 3 (3): 282-291. (2012)
13 Ampoful, A. “The Effect of Customer Relationship Management (CRM) on the Profitability of Financial Institutions-
A Case Study of Barclays Bank Limited” Takoradi Branches (Doctoral dissertation). Institute of Distance Learning,
KNUST (2012).
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STEPS TO DEVELOP CRM STRATEGY
1. Set Up your goal: Improving relationships with your customers is the fundamental objective
of any kind of customer relationship management plan. But you need to be more detailed than
that when putting your plan together. How does that procedure actually go? How will you
know when you've achieved success?
Before writing down your actual plan and improvements, your first step is to determine your
target. You may want to, for instance:
❖ Boost your rate of customer retention.
❖ Boost customer upgrade rates
❖ Increase customer satisfaction scores
One can create a CRM target using the SMART goal framework to ensure that everyone on your
team is on the same page on your goals and what success ultimately entails.
2. Identifying the customers: You must first fully comprehend your customers if you hope to
build better and more advantageous ties with them. No, this does not imply that you must
memorize everyone's location or name. Instead, you must comprehend the broad categories
into which your usual customers fit. What are they aiming for? their difficulties? How does
your business assist? Building customer profiles or marketing character traits of your target
consumer based on actual facts and experience—is effective for many businesses. You may,
for instance, create personas for clients who are ardent outdoor enthusiasts and for parents
who wish to take their children camping.
The key here is to really get to know your usual clients and what drives them. This aids in
focusing your marketing and CRM techniques on those particular audiences rather than
general and non-targeted audiences.
3. Identifying areas for improvement: It may occur to you that you lack a method for
proactively identifying new website visitors so that you may make them an offer. Or perhaps
you'll see that customers drop off fast after joining up because they don't get the onboarding
assistance they expected.
Reviewing prior client feedback might be wise as you examine your customer interactions
and experiences through this crucial (but essential) perspective. Whether customers complain
about a slow response time or a lack of personalisation in interactions, such difficult-to-hear
observations will aid you in further refining your CRM methods.
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4. Bring out the changes: You are aware of what has to be fixed; how will you go about putting
it into action? The main goal of this step is to decide which adjustments you'll make to your
customer relationship management.
This is the time to strategize with your team about all the ways you could better engage with
your customers throughout their journeys, whether it's establishing up an automated
"welcome" e - mail workflow for prospective consumers, setting up a knowledge and
understanding for self-service data, generating a timeframe for customer community
engagement, or begin an exclusive society where your consumers can communicate with one
another.
5. Determine how you performed: It takes time and effort to continually improve your
customer relationship management; you can't just figure it out once and wait for the
enchantment to happen. Regular opportunities to assess your progress must be part of any
CRM strategy. Check your progress against the CRM objectives you defined in the first phase
by going back to them. This provides you with the capacity to proactively make any
additional alterations or advancements that are required. You want to be flexible and nimble,
just as with any other kind of approach.
CONCLUSION
This study indicates a positive association between both variables and a considerable impact of
customer relationship management on customer satisfaction. The more robust and dependable the
company's CRM, the more delighted and loyal its customers will be. A higher degree of customer
satisfaction will encourage repeat business from customers who will utilize the company's products,
which will boost sales and raise organizational profit. There will be more devoted customers overall.
RECOMMENDATION
The study of the findongs shows that CRM has an impact on improving customer satisfaction levels
and profit growth by cutting the cost of customer acquisition. It also helps businesses grow their
customer bases, which will improve revenues and help them gain an edge over their competitors.
CRM responds by sending the appropriate message to the appropriate customer at the appropriate
time via the appropriate channel.
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CRM is crucial for the business since it generates more revenue from all retail channels than half of
the other approaches and tactics combined. CRM also increases marketing performance.
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