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ArticlePeer ReviewedOpen AccessPlagiarism Passed
Paper ID:IJSREM66209

THE IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER RETENTION AND BUSINESS PERFORMANCE

Stream/Area:

-

Subject:

-

Paper ID:

IJSREM66209

Volume:

10 |

7 |

Jul 2026

Pages:

1-11

Publication Frequency:

Monthly (12 issues per year)

DOI
Digital Object Identifier
10.55041/IJSREM66209

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Authors

NM

Nikhil M

Department of Management Studies

Visvesvaraya Technological University – Belagavi, Center for Post Graduate Studies-Bangalore

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Mentors

DKKR

Dr. Karthik K R

Assistant Professor & Research Supervisor, Department of Management Studies,

Visvesvaraya Technological University-Belagavi, Centre for Post-Graduation Studies, Muddenahalli, Chikkaballapur, India

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Abstract

Customer Relationship Management (CRM) has become an essential business strategy for developing strong and lasting relationships with customers in today's competitive marketplace. This study examines the role of CRM practices in improving customer retention by enhancing customer satisfaction, trust, loyalty, and overall service quality. The primary objective of the study is to understand how effective customer relationship management influences customers' decisions to continue purchasing from the same organization. The research is based on both primary and secondary data. Primary data were collected through a structured questionnaire administered to customers, while secondary data were gathered from books, research journals, company reports, and credible online sources. The collected data were analysed using descriptive statistical techniques to identify the relationship between CRM practices and customer retention. The findings indicate that organizations implementing efficient CRM strategies, such as personalized communication, prompt complaint resolution, customer feedback systems, and loyalty programs, experience higher levels of customer satisfaction and long-term customer retention. The study further reveals that retaining existing customers is more cost-effective than acquiring new ones and contributes significantly to organizational growth, profitability, and competitive advantage. Strong customer relationships also encourage repeat purchases, positive word-of-mouth recommendations, and increased customer lifetime value. The study concludes that organizations should continuously improve their CRM initiatives by understanding changing customer needs, adopting technology-driven solutions, and delivering consistent service quality. These efforts can help businesses build sustainable customer relationships and achieve long-term success in an increasingly customer-focused business environment.

KEYWORDS

Customer Relationship Management (CRM) Customer Retention Customer Satisfaction Customer Loyalty Service Quality Customer Engagement.

Cite This Article

Nikhil M, Dr. Karthik K R, "THE IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER RETENTION AND BUSINESS PERFORMANCE," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 7, pp. 1-11, Jul 2026. https://doi.org/10.55041/IJSREM66209

Full Article/Conclusion

This study examined the relationship between Customer Relationship Management (CRM) and customer retention. Based on the analysis of responses from 100 customers, the findings indicate that effective CRM practices positively influence customer satisfaction, customer loyalty, and long-term customer retention. Customers who experience personalized communication, quality service, timely complaint resolution, and regular engagement are more likely to continue their relationship with an organization. The study confirms that CRM is not merely a technological tool but a strategic business approach that strengthens customer relationships and enhances organizational performance. Businesses that consistently focus on understanding customer needs and delivering superior service can achieve higher customer retention, increased profitability, and a sustainable competitive advantage.

References

Akbar, I., Iriani, S. S., & Sanaji. (2025). Customer relationship management in enhancing customer loyalty: A systematic literature review. Journal of Business and Management Studies, 13(2), 45–58. Buttle, F., & Maklan, S. (2022). Customer relationship management: Concepts and technologies (4th ed.). Routledge. Das, S., Mohapatra, R., Pandey, A., & Nayak, P. (2025). Customer relationship management and firm performance: A meta-analysis. Indian Journal of Marketing, 55(2), 21–36. Kotler, P., Keller, K. L., & Chernev, A. (2022). Marketing management (16th ed.). Pearson. Kumar, V., & Reinartz, W. (2018). Customer relationship management: Concept, strategy, and tools (3rd ed.). Springer. Lasola, A. O. (2025). Customer relationship management practices as determinants of business performance: A systematic literature review. International Journal of Multidisciplinary Applied Business and Education Research, 6(1), 112–126. Payne, A., & Frow, P. (2017). Strategic customer management: Integrating relationship marketing and CRM. Cambridge University Press. Rainy, M., & Goswami, A. (2025). Artificial intelligence-enabled customer relationship management and customer retention: A systematic literature review. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.5317471 Rust, R. T., Lemon, K. N., & Zeithaml, V. A. (2020). Driving customer equity: How customer lifetime value is reshaping corporate strategy. Free Press. Ziky, A., Bahida, A., Oulamine, H., Chakra, M., & Massiki, M. (2025). Online customer relationship management and customer engagement: A systematic review using the PRISMA approach. International Journal of Innovative Research and Scientific Studies, 8(1), 155–170.

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Publication Date

7/18/2026

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