An Empirical Study on the Role of Customer Relationship Management in Customer Retention during Economic Uncertainty

Abstract

This study focuses on how Customer Relationship Management (CRM) can contribute to a company's maintaining the retention of customers during times of economic stress. The study will be descriptive and analytical research and the primary data used in the study will be from 200 customers who will be interviewed with a structured questionnaire. The use of customer service, communication, personalization, trust and reliability and loyalty programmes is explored in relation to CRM. The evaluation of the relationship between CRM and customer retention is conducted by descriptive statistics, correlation and regression analysis. The results revealed a strong positive association of CRM with customer retention with trust and reliability and customer service as important predictors. In conclusion, the study confirms that good CRM can positively influence customer loyalty, decrease switching intentions and contribute to customer relationships development during uncertain economic situation.