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The Impact of CRM Strategy on Customer Loyalty in SMEs

Lena Saleh and Laura El Saheli

International Business Research, 2018, vol. 11, issue 11, 37-45

Abstract: The beauty service industry is one of the most flourishing industries in contemporary Beirut, the capital of Lebanon, as versatile demands from men and women have catered to this uplifting growth. A national scandal, however, lead to the suspension of several beauty centers, and conveyed a challenge for competitive small-medium enterprises (SME) to sustain relationships with customers over the long-run. The aim of this study was to understand the impact of customer relationship management (CRM) strategy on customer loyalty using the case of beauty centers in Beirut, Lebanon. The study employed a quantitative approach where data was collected by means of a questionnaire, from a sample of 103 customers. Four variables, as components of CRM, were measured in this study. Results of the statistical analysis verified that customer experience, employee behaviour, and value proposition have a positive impact on customer loyalty. This research provides recommendations for strategically improving relationship-oriented practices in Lebanese SMEs, particularly in the beauty sector.

Keywords: Small-Medium Enterprise (SME); Customer Relationship Management (CRM); customer loyalty; beauty center (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:ibn:ibrjnl:v:11:y:2018:i:11:p:37-45