Importance of CEM in CRM-CL framework

Abstract

Purpose – The purpose of this paper is to propose a model to understand the role of customer relationship management efforts in building, sustaining and enhancing customer loyalty (CL). Design/methodology/approach – This paper reviews extant literature in customer relationship management (CRM), customer experience management (CEM) and CL, with a particular emphasis on exploring the relationships between these proposed domains. Findings – The CRM efforts, customer acquisition, retention and experience, are suggested to have positive influence on attitudinal and behavioural loyalty. A model for testing the associations of customer relationship efforts to various forms of CL, including the satisfaction, trust and commitment as mediators in CRM-CL link are proposed. Research limitations/implications – This paper represents a first attempt to build and propose a conceptual framework of CRM–CL. This is an indicative research than a conclusive one. Therefore, research implications are to perform the empirical testing of model in different business environments. Practical implications – This application of proposed model in a business environment will be helpful for the marketing practitioners to well understand the customers’ changing expectations as well as to prioritize the marketing functions. The emphasis and right calculation about the acquisition, retention and experience decisions would be helpful to marketers to know the expected profitability of customers. Originality/value – This is the first paper to provide a comprehensive integrated model of CRM and CL to understand the effects of CRM efforts on various forms of CL.

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