IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON FIRM PERFORMANCE: EMPIRICAL INVESTIGATION OF INSURANCE PROVIDERS IN PAKISTAN
Keywords:
SMEs, Innovation, Performance, CapabilitiesAbstract
The most significant challenge for any firm today in the era of competition is to create and sustain relationships with its customers to increase profit. By lowering costs and improving product quality, the company establishes and maintains relationships with customers. Hereafter, this study aims to evaluate the impact of customer relationships on the organization’s performance in insurance companies. The quantitative approach has been used for this study. The population selected for this study comprises team players of insurance companies of Pakistan and the sample size selected for this study was 300 respondents. The software used for the analysis was SPSS and CFA. It is concluded that customer relationship management has a positive impact on the organization's performance, with employee performance and customer handling mediating the relationship of CRM and organization performance.
References
A. F., & Uduma, I.A. (2014). Influence of Customer Appreciation Strategy adoption and customer evangelism, and service performance of Not-for-profit Institutions in Nigeria: A field case study. The Business & Management Review, 4(4), 50-64.
Abdul lateef, A. O., Mokhtar, S. S., & Yusoff, R. Z. (2010). Drivers of Efficient Service Delivery and Caller Satisfaction: A Model of CRM Customer Contact Centers in Malaysia: International Journal of Management Studies
Al-hawari, M.A. (2015). How the personality of retail bank customers interferes with the relationship between service quality and loyalty. International Journal of Bank Marketing, 33 (1), 41-57.
Ali, A. Alim, W. Ahmed, J. Nisar, S. (2021). Yoke of corporate governance and firm performance: A study of listed firms in Pakistan. Indian Journal of Commerce & Management Studies 13 (1), 8-17.
Ali, A. and Bibi, C. (2017). Determinants of Social Progress and its Scenarios under the role of Macroeconomic Instability: Empirics from Pakistan. Pakistan Economic and Social Review 55 (2), 505-540.
Alim, W. Ali, A., & Farid, M. (2021). The Impact of Islamic Portfolio on Risk and Return. Archives of Business Research, 9 (11), 108-122.
Alim, W. Ali, A., & Rauf, M. M. (2021). The Effect of Liquidity Risk Management on Financial Performance of Commercial Banks in Pakistan. Journal of Applied Economics and Business, 9 (4), 109-128.
Audi, M. Ali, A., & Roussel, R. (2021). The Advancement in Information and Communication Technologies (ICT) and Economic Development: A Panel Analysis. International Journal of Innovation, Creativity and Change 15 (4), 1013-1039.
Awasthi, P. and Sangle, P.S. (2012). Adoption of CRM technology in multichannel environment: a review (2006-2010). Business Process Management Journal, 18 (3), 445-471.
Barney, B.J., Delwyn, N. (2007). Resource-Based Theory: Creating and Sustaining Competitive Advantage. Oxford: Oxford University Press.
Bentum, R.V. and Stone, M. (2005). Customer relationship management and the impact of corporate culture – a European study. Journal of Database Marketing & Customer Strategy Management, 13(1), 28-54.
Bhat, S.A. and Darzi, M.A. (2013). Customer relationship management: a review of Indian banking sector. The Business Review, 17 (1-2), 58-67.
Bose (2002). Customer relationship management: key components for IT success. Industrial Management and Data Systems, 102 (2), 89-97.
Boulding W, Staelin R, Ehret M, Johnston WJ (2005). A customer relationship management roadmap: what is known, potential pitfalls, and where to go. Journal of Marketing 69: 155-166
Brun, I., Raja obelina, L. and Ricard, L.(2014). Online relationship quality: scale development and initial testing”, International Journal of Bank Marketing, 32 (1), 5-27.
Cai, S. (2009). The importance of customer focus for organizational performance: A study of Chinese Companies. International Journal of Quality & Reliability Management, 26(4), 369–379. doi:10.1108/02656710910950351
Cheng, L.Y., Ching-Chow, Y. and Hui-Ming, T. (2013). An integrated model for customer relationship management: an analysis and empirical study. Human Factors and Ergonomics in Manufacturing & Service Industries, 23 (5), 462-481.
Christopher, M., Payne, A., & Ballantyne, D. (1991). Relationship marketing: Bringing quality, customer service, and marketing together. Oxford: Butterworth Heinemann.
Clewes, D. (2003). A student-centered Conceptual Model of Service Quality in Higher Education. Quality in Higher Education, 9(1), 69-85.
Coltman, T. R. (2007). Can Superior CRM Capabilities Improve Performance in Banking? Journal of Financial Services Marketing, 2007, 12(2), 102 – 114.
Cravens, D. W. (1995). Introduction to the special issue. Journal of the Academy of Marketing Science, 23(1), 235.
Crosby, L. A., Evans, K.R., & Cowles, D. (1990). Relationship quality in services selling: An interpersonal influence perspective. Journal of Marketing, 54(3), 68–81.
Czepiel, J. (1990). Service encounters and service relationships: Implications for research. Journal of Business Research, 20(1), 13–21.
Doney, P.M. and Cannon, J.P. (1997). An examination of the nature of trust in buyer-seller relationships”, Journal of Marketing, 61 (2), 35-51.
Doyle, P. (1995). Marketing in the new millennium. European journal of Marketing.
Dr. H. C. Sainy and Richa Darshan, (2012). Customer Experience Management through Store Attributes: A Mirror Image of CRM”, Presented at National Conference organized at Laxmi Narain College of Technology, Indore and Published in “Prabandhan & Taqniki” Vol.6, (ISSN No 09748563).
Du Plessis, P.J., Jooste, C.J. and Strydom, J.W. (2005). Applied Strategic Marketing. Sandton: Heinemann Publishers
Elkordy, M. (2014). The impact of CRM capability dimensions on organizational performance”, European Journal of Business and Social Sciences, 2 (10), 128-146.
Feinberg, R., & Kadam , R . (2002). E –CRM Wed service attributes as determinants of customer satisfaction with retail wed sites International Journal of Service Industry Management , 13(5) , 432-451
Filip, A. (2013). Complaint management: a customer satisfaction learning process”, Procedia-Social and Behavioral Sciences, 93 (4), 271-275.
Fuchs, C. and Schreier, M. (2011). Customer empowerment in new product development”, Journal of Product Innovation Management, 28 (1), 17-32.
Galitsky, B. and Rosa, J.L. de la (2011). Concept-based learning of human behavior for customer relationship management”, Information Sciences, 181 (10), 2016-2035.
Ganesan, S. (1994). Determinants of long-term orientation in buyer-seller relationships. Journal of Marketing, 58(2), 1–19.
Hallowell, R. (1996). The relationships of customer satisfaction, customer loyalty and profitability: An empirical study. International Journal of Service Industry Management, 7(4), 27–42.
Heinonen, K. (2014). Multiple perspectives on customer relationships”, International Journal of Bank Marketing, 32 (6), 450-456.
Izquierdo C. C, Cilla’n, J. G., and Gutie’rrez, S. S. (2005). The impact of customer relationship marketing on the firm performance: a Spanish case. Journal of services marketing . 19(4), 234-244.
Jan, M.T. and Abdullah, K. (2014). The impact of technology CSFs on customer satisfaction and the role of trust”, International Journal of Bank Marketing, 32 (5), pp. 429-447.
Jarvinen, R.A. (2014). Consumer trust in banking relationships in Europe”, International Journal of Bank Marketing, 2 (6), 551-566.
Kilton, R. (2003). Empowerment: it’s about what you do, not what you say”, RWK Enterprises Inc., Lyons, CO, available at: www.rwkenterprises.com/empowerment.htm (accessed May 15, 2014).
Kim, M., Park, J.E., Dubinsky, A.J., & Chaiy, S. (2012). Frequency of CRM implementation activities: A customer centric view. Journal of Services Marketing, 26(2), 83–93. doi:10.1108/08876041211215248
Lavender, M. (2004). Maximizing customer relationships and minimizing business risk”, International Journal of Bank Marketing, 22 (4), 291-296.
Leverin, A. and Liljander, V. (2006). Does relationship marketing improve customer relationship satisfaction and loyalty?” International Journal of Bank Marketing, 24 (4), 232-251.
Macintosh, A. (1998). Position paper on knowledge asset management. Retrieved December 19, 2013, from www.aiai.edu.ac.uk/,alm/kam.html
Meso, P., & Smith, R (2000). A Resource Based View of Organizational Knowledge Management Systems; Journal of Knowledge Management, 4(3), 224 – 231.
Montaglione, C. J. (1999). The physician-patient relationship: the cornerstone of patient trust, satisfaction, and loyalty. Managed Care Quarterly, 7 (3), pp. 5-21.
Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38.
Mylonakis, J. (2009). Customer relationship management functions: A survey of Greek bank customer satisfaction perceptions. The Icfai University Journal of Bank Management, VIII(2), 7-31.
Ngai, E.W.T. (2005). Customer relationship management research (1992-2002)”, Marketing Intelligence and Planning, Vol. 23 No. 6, pp. 582-605.
Nguyen,T.U.H.,Sherif, J.S.and Newby, M. (2007). strategies for successful CRM implementation”, Information Management & Computer Security, 15 (2), 102-115.
Padmavathy, C., Balaji, M. S. and Sivakumar, V. J. (2012). Measuring effectiveness of customer relationship management in Indian retail banks”, International Journal of Bank Marketing, 30 (4), 246-266.
Payne, A.F.T. and Frow, P.E. (2005), “A strategic framework for CRM”, Journal of Marketing, 69 (4), 167-176.
Ramesh, K. (2013). Role of customer relationship management in the Indian banking system. International Journal of Applied Services Marketing Perspectives, 2(4), 645-650.
Reichheld, F.F. (2006). The Ultimate Question for Unlocking the Door to Good Profits and True Growth, Harvard Business School Publishing Corporation Boston, MA.
Reinartz, W., Krafft, M. and Hoyer, W.D. (2004). The customer relationship management process: its measurement and impact on performance. Journal of Marketing Research,41(3), 293-305.
Richa Darshan, (2011). Customer Relationship Management: A Marketing Mantra during Recession”, Published in “Prabandhan & Taqniki” 5, (ISSN No 0974-8563).
Rigby, D.K., Reichheld, F. and Davidson,C.(2003). Winning customer loyalty is a key to winning CRM strategy”, Ivey Business Journal, 67 (6), 1-5.
Roussel, Y., Ali, A., & Audi, M. (2021). Measuring the Money Demand in Pakistan: A Time Series Analysis. Bulletin of Business and Economics (BBE), 10(1), 27-41.
Ryals, L. and Knox, S. (2001). Cross-functional issues in the implementation of relationship marketing through customer relationship management. European Management Journal, 19 (5), 534-542.
Ryals, L. J., & Knox, S. (2005). Measuring risk-adjusted customer lifetime value and its impact on relationship marketing strategies and shareholder value. European Journal of Marketing, 39(5/6), 456–472.
Sayani, H. (2015). Customer satisfaction and loyalty in the United Arab Emirates banking industry. International Journal of Bank Marketing, 33 (3), 351-375.
Sheth, J. N., & Sisodia, R. S. (2002). Marketing productivity: Issues and analysis. Journal of Business Research, 55(5), 349–362.
Siddiqi, K.O. (2011). Interrelations between service quality attributes, customer satisfaction and customer loyalty in the retail banking sector in Bangladesh”, International Journal of Business and Management, 6 (3), 12-36.
Sigala, M. (2005). Integrating customer relationship management in hotel operations: Managerial and operational implications. International Journal of Hospitality Management, 24(3), 391-413.
Sin,L.Y.M., Tse, A.C.B. and Yim,F.H.K. (2005). CRM: conceptualization and scale development. European Journal of Marketing, Vol. 39 (11/12), 1264-1290.
Srinivasan, R., & Moorman, C. (2005). Strategic firm commitments and rewards for customer relationship management in online retailing. Journal of Marketing, 69(3), 193–200.
Summers Lynn (2004). Do Competencies Matter? Retrieved April 22, 2007. from http://www.workinfo.com/Free/Downloads/191.html
Thakur, R. (2014). What keeps mobile banking customers loyal? International Journal of Bank Marketing, 32 (7), pp. 628-646.
Verdugo, C.M., Oviedo-Garcia, A.M., Roldan, L.J. (2009). The employee-customer relationship quality: Antecedents and consequences in the hotel industry. International Journal of Contemporary Hospitality Management, 21(3), 251-274.
Verhoef, P.C. (2003). Understanding the effect of customer relationship management efforts on customer retention and customer share development, Journal of Marketing, 67 (4), 30-45.
Wang, Y. and Feng, H. (2012). Customer relationship management capabilities: measurement, antecedents and consequences”, Management Decision, 50 (1), 115-129.
Wang, Y., and Lo, H. P. (2004). An integrated framework for customer value and customer-relationship management performance: a customer-based., a perspective from china. Managing service quality. 14(2/3), 169182.
Wilson, H., Daniel, E. and McDonald, M. (2002). Factors for success in customer relationship management (CRM) systems, Journal of Marketing Management, 18 (1), 193-219.
Wright, L.T. (2006). Consumer empowerment special issue. European Journal of Marketing, 40 (9/10),. 925-935.
Yim, F.H.-K., Anderson, R.E. and Swaminathan, S. (2004). Customer relationship management: its dimensions and effect on customer outcomes, Journal of Personal Selling and Sales Management, 24 (4), 263-278.
Yueh, C. L., Lee, Y., Barnes, F., B, (2010). The effects of leadership styles on knowledge-based customer relationship management implementation: International journal of management and marketing research, 3(1), pp 1-19
Zablah, A.R., Bellenger, D.N. and Johnston, W.J. (2004). Customer relationship management implementation gaps”, Journal of Personal Selling & Sales Management, 24 (4), 279-295.
Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing Management, 60(2), 31–46. doi:10.2307/1251929
Zineldin, M.(2006). The royalty of loyalty: CRM, quality and retention. Journal of consumer marketing, 23(7), 430-437.
