Impact of Customer Relationship Management Dimensions on Customer Outcomes:Evidence from Pakistan

Abstract

The purpose of this study is to investigate the effect of dimensions of Customer Relationship Management (CRM) on performance parameters related to customer outcomes. It is an effort to identify requisite activities that will boost up the effectiveness of CRM implementation. To analyze and validate the proposed hypotheses, cross sectional research design was used and data was collected from 202 business executives from manufacturing and service firms, thorough self-administrative questionnaire which was measured on a seven-point Likert scale. The factors structure was examined through Confirmatory Factor Analysis and hypotheses were tested using Structural Equation Modeling. The study supported the impact of organizing around CRM and incorporating CRM based technology on customer satisfaction. Results also proved that focusing on key customers and managing knowledge help in retaining the customers. Furthermore, the hypothesis verified the importance of customer satisfaction towards customer retention and sales growth. After examining the mode of measurement, findings provide help to managers by considering the importance of CRM to upgrade the performance outcomes in an efficient and effective way. Present study also confirms that when companies focus on increasing the performance parameters, they have to build up long lasting CRM strategies in order to strengthen a meaningful relationship with the customers. The originality of the study is the focus of key dimensions of CRM to improve customer satisfaction, customer retention and sales growth in context of Pakistan by developing a valid model which helps in attaining successful performance outcomes for the firms.