The Effective Customer Relationship Management of Business to Business in Improving Customer Satisfaction and Customer Retention

Budi Prakoso (), Ratih Hurriyati and Heny Hendrayati
Additional contact information
Budi Prakoso: Universitas Pendidikan Indonesia
Ratih Hurriyati: Universitas Pendidikan Indonesia
Heny Hendrayati: Universitas Pendidikan Indonesia

A chapter in Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023), 2024, pp 638-644 from Springer

Abstract: Abstract The attainment of revenue targets holds paramount importance for companies, as it not only ensures their survival but also facilitates sustainable growth. A pivotal factor influencing the realization of these revenue objectives is customer retention, which exhibits a strong correlation with customer satisfaction. In turn, customer satisfaction is markedly influenced by implementing effective Customer Relationship Management (CRM) strategies. The primary objective of this research endeavor is to investigate the intricate interplay between CRM variables, Customer Satisfaction (CS), and Customer Retention (CR). The empirical analysis draws upon responses from a sample of 107 customers who have engaged in cooperative agreements with the company under study. These participants were surveyed through a meticulously designed questionnaire. The research hypothesis was tested employing the Partial Least Square (PLS) procedure, a robust statistical tool for assessing the relationships within complex models. The findings of this study reveal several significant insights. Firstly, the CRM variable exerts a positive influence on the CS variable, underscoring the pivotal role of effective customer relationship management in fostering customer satisfaction. Furthermore, both the CRM and CS variables exhibit positive effects on CR, implying that satisfied customers are more likely to continue their patronage. Intriguingly, the study uncovers a direct negative impact of the CRM variable on CR, suggesting that while CRM enhances satisfaction, an overemphasis on CRM may inadvertently discourage customer retention. In light of these results, practical recommendations emerge. Companies are advised to prioritize the maintenance and enhancement of the quality of their customer relationship management initiatives. A keen focus on CRM will bolster customer satisfaction and contribute positively to customer retention. Additionally, organizations should attentively consider feedback garnered through their customer relationship systems as a valuable resource for improving service quality and refining customer relations strategies. These proactive measures will undoubtedly contribute to the overarching goal of achieving revenue targets and fostering sustainable growth in a competitive business landscape.

Keywords: Customer Retention; Customer Satisfaction; Customer Relationship Management (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-443-3_83

Ordering information: This item can be ordered from
http://www.springer.com/9789464634433

DOI: 10.2991/978-94-6463-443-3_83

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().