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Analysis of Relationship between Digital Marketing and Customer Relationship

Management

Article in International Journal of Advanced Science and Technology · April 2020

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 International Journal of Advanced Science and Technology
Vol. 29, No. 8s, (2020), pp. 412-418

Analysis of Relationship between Digital Marketing and Customer

Relationship Management
1
Nidhi Tandon, 2 Simran Kaur, 3 Mr. Rajesh Verma
1, 2
Assistant Professor, Department of Commerce, Manav Rachna International Institute of Research and
Studies, Faridabad
3
Assistant Professor, Amity School of Insurance and Banking Actuarial Science, Amity University, Noida

Abstract
In the developed countries America and some other European countries CRM is stated as an approach to
learn and impact the behavior of customers by composing meaningful communication to obtain more
customers and retain the existing customers. As a matter of fact CRM ensures the loyalty of the customer
and profitability of the organization. Any of the company is recognized by the respective brand and a brand
is successful if customers are following it in real sense. This present study is based on the analysis of this
relationship between CRM maintenance and brand following by the selected respondents. This study is
based on primary data and 200 people from different groups of society are chosen for the same. SPSS Ver.
22.0 is used to analyze the data. The research suggested that there is a positive relationship between CRM
and digital marketing.

Keywords: Digital Marketing, CRM practices, Feedback

Introduction

CRM (Customer Relationship Management) Expanded

Customer: ‘Customer is God’ as the saying goes, stands true in the present time as well. For each and every
organization customer is the only source of revenue and expected growth in near future.

Relationship: It is very important for a company to maintain relation with the concern customers; this long-
term relation is very beneficial for any given organization. Rather the customers also want to maintain
relationship with the company for different reasons.

Management: Here the term management is related to the corporate structure of the organization i.e. any
changes brought about in the organization’s marketing and sales structure can be evenly resulted in far
reaching profits.

If it is quoted openly, then CRM is a tool to find and avail every business opportunity that can be converted
into sales and finally in profit. Till the last years of 20th century, filling up the feedback form and providing
after sale service were the only basis of customer relationship management then after the advent of
information technology in the early years of 21st century the overall scenario of CRM has changes forever.
At present it is a tool to enable the organization to find and identify every new customer and finally
converting it into sales. As a matter of fact most of the marketing strategies of the organization are customer
focused and a relevant system of CRM can solve the purpose. So it can be said that there are three pillars
of successful CRM system i.e. customer, information technology and business processing.

Across the globe, different organizations have defined CRM according their culture and values. Like in the
developed countries America and some other European countries CRM is stated as an approach to learn
and impact the behavior of customers by composing meaningful communication to obtain more customers
and retain the existing customers. In India also with 450 million internet users, 1.18 billion mobile phone
users and occurence of Digital India, the future of Digital Marketing is heading towards $1 Trillion digital
opportunities as per study conducted by digitalvidya. As a matter of fact CRM ensures the loyalty of the
customer and profitability of the organization. It is true that all the organizations, across the globe, are not

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 International Journal of Advanced Science and Technology
Vol. 29, No. 8s, (2020), pp. 412-418

maintaining CRM in it true sense but the organizations who the maintain a good CRM system are in the
practice of keeping customers in the center and all the respective marketing and sales strategies revolve
around them.

This is a well-known fact that services oriented companies are more eager to maintain a realistic system of
CRM as compared to companies offering physical or consumer goods. This is because of the reason that
the basic orientation of the service industry is based on the fact that a satisfied customer can refer a number
of customer and a dissatisfied can ruin the business and in case of consumer goods every customer is a
different and step by step they build up their customer base. The main objective of CRM is to increase the
satisfaction of the customer, earn the loyalty of customers, increase the actual customer base and by the
way of doing all this finally increases the profitability of the organization.

All the companies either service oriented or offering consumer goods use to receive feedback from the
customer in a positive and negative manner, some companies use to record them for further use even some
of the companies come in close contact with the customer on different avenues of social and digital media.
In the present times digital media is one of the most prominent avenues for the customers as well as for the
organizations offering different products and services. Where the customer are having an opportunity to
state their true feedback and this feedback may become a basis for other customers either to buy or not to
buy a product or avail a service on the other hand the organizations can meet out the needs and wants of
the prospective customers and keep the track of issues raised by present customers.

In the present scenario the people can share their opinions, views, etc. on real time basis and even put their
feedback regarding the products and services they had availed in the recent past what was their experience
about the same. This scenario has evolved to an extent where every new customer buys a product or avail
a service based on these feedbacks. Though online communication is able to present a new target and
increase the level of competition and at present this is serving the said purpose. Thurau et al (2010). Digital
media is having a larger context as it seems, every other avenue of digital media i.e. the websites, social
media platforms and others are directly or indirectly related to the production, consumption and even
transformation of information about goods and services.

Digital Marketing

As we know that advertising has changed a lot in the last few years i.e. from billboards to screens of
smartphones and this transformation has took a long time. Digital marketing is one of the latest avenues to
market and advertise the new and existing goods and services and this is now being used as a medium to
reach the new customers and safeguard the interest of existing customers. Digital marketing includes the
platforms of mobile phones, social media, web advertising, SEO (Search Engine Optimization) and other
many related avenues. As of now the customers can access the product or services related information as
and when it is required and it is not dependent on literature released by the companies in their pamphlets
and even annual reports. As per the study conducted by statista in the year 2018, India consist of 483
million internet users, and this figure is expected to grow to 666.4 million internet users by the end of 2023.

By the adequate use of digital media customers can get the latest information, post their feedback, receive
updates on the other hand the companies can keep the track of the success of their products and services,
make required changes in their products and services based on the feedback of their customers. Apart from
keeping the track of feedback companies are using the platform of digital media for marketing their products
and services. In the present scenario digital marketing is assisting the companies to market their products
and services by the way of using digital marketing in a correct manner a long term relationship with the
customers can be maintained and this relation may result in extended profitability in near future.

The avenue of digital marketing is able to personalize a given brand in view of the customers and they feel
like more connected to the company and the respective brand. The benefits that a customer pertains from

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Vol. 29, No. 8s, (2020), pp. 412-418

digital marketing are related to the interests and needs of the customers. In this context it can be said that a
given customer can update his or her knowledge about the existing brands, compare the respective brands,
get the best available deals and many other related benefits. KVR (2015)

Different avenues of digital marketing

SEO (Search Engine Optimization):Search engine optimization is a technique where particular keywords
are optimized and as a result whenever a person types those keywords or part of the same a particular set
of links appear in the list. KVR (2015)

PPC (Pay per Click):it is a paid kind of search, where the respective set of people are being paid to click
on certain links, this PPC is dependent on the competitiveness of the respective brand and the keywords
that are clicked.

Social Media:this is one of the biggest platform related to digital media, some of the popular platforms are
Whatsapp, Facebook, Twitter, Linkedin, etc. and every six months a new platform is emerging in the
market.

Online Advertising:in this any particular product or service is being advertised on the related or unrelated
websites, for example a banner ad of shoe brand is floated on the website of educational institution and this
is one of the paid forms.

Literature Review

Greenberg (2009)the findings of the study stated that the platform of social media is one of the most used
platforms and even this is being used in different contexts, people can share their views and opinions freely
and the respective companies can access this information to make the necessary in their respective products
and services. Apart from this the medium of social media can be used to keep the track of reviews made by
the customer in one of the other manner.

Andzulis, et al (2015)the researcher stated that all the customers across the globe are concerned about the
benefits that they are supposed to receive from the use of a product or services and the digital media can
help a lot in this concern. Different avenues of digital media are able to provide all the requisite information
to the users of digital media in one or the other manner. In the present scenario this is the strongest
linkbetween the company and the customer.

Parihar (2014)stated that the use of digital media has changes the face of marketing forever and the
customers are not required to wait for the information released by the companies from time to time as they
can access the recent information on digital platforms. This has made the life of customers easy as they can
decide to buy a given product based on the reviews posted on respective websites. Even the companies are
able to maintain a new age CRM in the present scenario of cut throat competition.

Objectives
- To know about the changes in context of CRM as far as given brands are concerned in relation to
digital marketing.To evaluate the effect of maintaining the effective system of CRM and the impact
of the same changing mind set of customers.
Hypothesis
H0: There is a no significant relationship between the use of digital media and CRM development by the
companies.

H1: There is a significant relationship between the use of digital media and CRM development by the
companies.

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 International Journal of Advanced Science and Technology
Vol. 29, No. 8s, (2020), pp. 412-418

Research Methodology

Sources of Data
Both primary and secondary data were considered for the conduct of this study.

Secondary Data
Secondary data is used to get a more clear insight of the chosen topic, in this present study different research
papers from a number of national and international journals, IBEF report from 2015 to 2018 were
considered, and even some of the articles from various issues of economic times are also considered.

Primary Data
To collect the primary data a structured questionnaire is exercised with the respondents. Most of the
questions in the questionnaire are in the form of Likert Scale (where 1 means highly agreed and 5 means
highly disagreed).

Sampling Area
The area of sampling is includes the users of certain brands. The products that are used in this study are as
follows:

- Shoes
- Apparels
- Mobile phones
- Electronic goods

Sampling Technique
In this study the sampling was random in nature; this is because of the reason that the number of segments
in the society is targeted. Most of the respondents are from IT and ITES companies.

Sample Size
Sample size in the present study is 200 respondents; this sample size is the chosen on behalf of some of the
earlier (Indian and Foreign) studies, conducted at the different time frames. Mainly the sample involves
People from software development, sales and marketing professionals.

Data Presentation

Time spend on Internet Reasons to follow Brands

150 100 80
Respondents
Respondents

103 80 56
100 60 40
55 40 24
42 20
50
0
0
1 to 3 hr 4 to 6 hr more than 6
hr
time in hrs. Reasons

Interpretation

As given in the above chart, 103 out of 200 respondents use to spent 1 to 3 hours on internet and this is
maximum in this category. 55 respondents use to spent 4 to 6 hours and 42 respondents use to spent more
than 6 hours on internet. The reasons for surfing are different but the expected time can be categorized.

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Vol. 29, No. 8s, (2020), pp. 412-418

Here it is important to mention that in most of the cases, brand knowledge of the respondents was found
adequate.

As far as reasons to follow brands is concerned most of the respondents are eager to know about the new
products or the new models launched in the same brand category. Then at the second level 56 out of 200
respondents follow brands for the recent offers.

Comment on Digital Content Time taken by Brand to respond

80
68
70

No. of respondents
60
32% 50 44
40 32 30
30 26
68% yes
20
no 10
0
Instant 1 to 6 hr 12 hr 1 day More
than 1
day
Time

Interpretation

68% of the respondents stated that they use to regularly comment and post their reviews on the digital
content, this can be in the form of feedback, product reviews, operational efficiency and deficiency and
many other related components. Many of the respondents stated that they use to post their queries directly
on the website of respective brand. Then on the other hand 68 out of 200 respondents stated that the website
use to take 1 to 6 hrs to respond to their queries. In some of the cases websites use to take more than 1 day
to respond to the queries.

Hypothesis Testing

Summary of ANOVA Results H1

On the Basis of Age F Sign
Digital Media is suitable source of information .155 .926
Accessing Brands on digital media is easy .688 .559
Companies are eager to respond on queries .660 .577
Company responses are generally useful .365 .778
Company quotes my comments on digital media .889 .446
Query management team is supportive 4.408 3.005
Participating in contest on digital media is delighting 3.445 3.017
Company use to message the latest deals via digital media .316 .814
On the Basis of Education
Digital Media is suitable source of information 3.098 3.016
Accessing Brands on digital media is easy .534 .711
Companies are eager to respond on queries .983 .817

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Vol. 29, No. 8s, (2020), pp. 412-418

Company responses are generally useful 1.885 1.112

Company quotes my comments on digital media 1.117 1.348
Query management team is supportive 1.443 1.219
Participating in contest on digital media is delighting 3.445 .017
Company use to message the latest deals via digital media .316 .814
On the Basis of Income
Digital Media is suitable source of information 1.921 2.431
Accessing Brands on digital media is easy 2.371 2.310
Companies are eager to respond on queries 2.459 2.062
Company responses are generally useful .209 .890
Company quotes my comments on digital media .579 .629
Query management team is supportive .993 .396
Participating in contest on digital media is delighting .593 .620
Company use to message the latest deals via digital media .456 .503
On the Basis of Experience
Digital Media is suitable source of information 1.111 .344
Accessing Brands on digital media is easy 3.445 3.112
Companies are eager to respond on queries .316 .414
Company responses are generally useful 17.921 .000
Company quotes my comments on digital media 2.371 .070
Query management team is supportive 2.459 .062
Participating in contest on digital media is delighting .082 .970
Company use to message the latest deals via digital media .360 .782

Interpretation

The above stated hypothesis is tested on the basis of demographic characteristics of the respondents; age,
education, income and experience are considered for the same. From the above summary of ANOVA test
results it can be seen that on the basis of age in most of the cases the ‘Sign.’ Value is more than the ‘F’
value and this shows that on the basis of age there is minimum variation between the answers of the
respondents. Apparently there is a slight variation in case of query management and participation in
contests.

Then on the basis of age in most of the cases the ‘Sign.’ Value is less than the ‘F’ value and this shows that
as the age and income of a person increases high variation occurs in the pattern of internet surfing and
following of brands. Then if the income of a person increases he or she becomes more particular about the
choices and wants to sort out the brand related problems as early as possible.

Then on the basis of experience in most of the cases the ‘Sign.’ Value is more than the ‘F’ value and this
shows that as the experience of a person increases he or she becomes more particular about the choices and
even their knowledge about the brand increases.

Result

On the basis of above analysis and interpretation it can be stated that there is a strong relationship between
the usage of digital media and CRM maintained by the companies and in lieu of the same mull hypothesis
‘There is a significant relationship between the use of digital media and CRM development by the
companies’ stands true and the alternate hypothesis can be rejected.

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 International Journal of Advanced Science and Technology
Vol. 29, No. 8s, (2020), pp. 412-418

Conclusion

In the present scenario the people can share their opinions, views, etc. on real time basis and even put their
feedback regarding the products and service they had availed in the recent past what was their experience
about the same. This scenario has evolved to an extent where every new customer buys a product or avail
a service based on these feedbacks. Though online communication is able to present a new target and
increase the level of competition and at present this is serving the said purpose. In the present cut throat
competition companies are taking the help of all the available avenues and digital marketing is one of them,
this helps to increase the customer base and as well earn the loyalty of the customer.

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