Impact Of Client Relationship Management Of Online Business Organizations On Customer Retention

Introduction

1.1 Background Of The Study

Customer Relationship Management (CRM) is a method of managing a company’s involvement with existing and future customers by establishing a trusting relationship. It focuses on data analysis and a review of the company’s past in order to improve customer interactions, with a particular focus on customer retention and, eventually, revenue growth. A key component of the CRM strategy is the CRM software, which collects data from multiple communication channels such as a client’s website, phone, e-mail, live chat, and resources, as well as social media. Businesses may better satisfy their demands and reach their target consumers thanks to CRM techniques and technologies. CRM solutions enable organizations to connect with huge groups of customers independently and at a cheap cost. Businesses may utilize this information to acquire individual client experience, which they can then use to build unique solutions and mutually beneficial partnerships. Such techniques improve the operational excellence of a company’s headquarters while also allowing for the development of customer relationships. The CRM strategy seeks to deliver better advantages to customers and strengthen customer relationships.

In reality, it enables the company to keep track of its interactions with potential consumers. Nonetheless, customer relationship management is not a top priority for many organizations. CRM is primarily concerned with organizations that are customer-centric and committed to developing long-term, mutually beneficial relationships. Some organizations want to customise the client’s experience. The customer is the most significant factor in the company’s success, and it is utilized to establish the company’s goals and business strategy. CRM is especially important in the service business, because pursuing an intimate approach is largely reliant on the individual client. To make this cooperation easier, CRM solutions are built on IT software.

In recent years, the importance of a long-term Customer Relationship Management (CRM) system has grown. Within organizational ideologies, the idea that long-term connections are more lucrative than short-term transactional interactions has evolved and stabilized. Customer relationship management, according to Knox et al. (2007), is an enterprise-wide practice of treating various customers differently in order to enhance value for both the customer and the business. CRM has been defined by Ryals and Knox (2007) as finding, satisfying, keeping, and maximizing the most valuable customers. They’ve incorporated the company’s methods, strategies, and technology for managing and reflecting on customer data as part of the CRM process. Modern organizations have begun to see CRM as a consequence of their business strategy, allowing for seamless integration of all company functions that interact with customers (Boulding et al., 2005). Furthermore, Dyche (2002) defines CRM as a corporate infrastructure that provides suitable ways to attract, maintain, and grow the value of loyal consumers. Customer value, according to Wang et. al., (2004), is a strategic weapon for gaining and maintaining competitive advantage through successful customer relationship management.

1.2 Statement Of The Problem

In today’s competitive environment, customer retention is becoming a more significant management tool. Customer retention refers to maintaining long-term, mutually beneficial customer connections. It is the heart and soul of relationship marketing, and it is critical to most businesses, since the cost of gaining new consumers is far higher than the cost of maintaining existing ones. Satisfaction leads to loyalty, which aids in the company’s ability to sustain long-term connections. It’s not just about providing the consumer with what they want; it’s about exceeding their expectations and making them happy. The goal of customer retention is to maintain the relationship that has been created between the company and the client. According to Pareto’s Rule, or the 80-20 rule, the company’s earnings and sales come from 20% of its consumers. As a result, it is critical for the firm to please its most profitable clients and to concentrate on keeping them. As a result, it may be regarded as the fundamental aim of businesses who use CRM methods and solutions.

1.3 Objective Of The Study

The study’s goal is to evaluate DataPlus Interactive Limited’s customer relationship management strategies and how they influence customer retention. The following are the primary goals:

To investigate DataPlus Interactive Limited customer relationship management methods.

To look into the challenges that DataPlus Interactive Limited faces in client relationship management.

To determine the impact of customer relationship management (CRM) on DataPlus Interactive Limited’s client retention.

1.4 Research Questions

What are DataPlus Interactive Limited’s customer relationship management methods?

What are the challenges that DataPlus Interactive Limited faces in terms of client relationship management?

What is the impact of customer relationship management (CRM) on DataPlus Interactive Limited’s client retention?

1.5 Significance Of The Study

This study explores the link between customer relationship management and customer retention by mediating consumer satisfaction with data plus interactivity, providing in-depth knowledge, insight, and guidance. The findings of this study will aid in raising awareness of customer relationship management techniques among privately held online businesses. It will also raise awareness about CRM deployment and pave the path for future academics to improve their studies and research.

1.6 Scope Of The Study

Customer Relationship Management (CRM) and how it influences customer retention at the Data Plus firm was the subject of this study. The study’s participants will be Data Plus customers, and it will be completed in three months.

1.7 Limitation Of Study

Despite the study’s important contribution to current research, it has a number of drawbacks. Due to a lack of financial resources and time constraints, the research is restricted to data plus interactive Abuja, Nigeria.

1.8 Definition Of Terms

Client Relationship Management:

Customer relationship management (CRM) is a technology for managing all your company’s relationships and interactions with customers and potential customers.

Online business:

Online business or e-business is any kind of business or commercial transaction that includes sharing information across the internet.

Organizations:

An organized group of people with a particular purpose, such as a business or government department.

Customer Retention:

Customer retention refers to the ability of a company or product to retain its customers over some specified period. High customer retention means customers of the product or business tend to return to, continue to buy or in some other way not defect to another product or business, or to non-use entirely.