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Top1. Introduction
In response to rapid changes in information technology (IT) and an increasingly competitive business environment, a large number of companies have implemented information system applications such as customer relationship management (CRM) over the past 10 years (Chen et al., 2020; Chiguvi & Mahambo, 2020; Cruz-Jesus et al., 2019). CRM is a strategy and technique for handling customer interactions through IT usage to automate business processes (Anshari et al., 2019). It enables companies to collect, save, access, communicate, and analyze huge amounts of data about their customers (Suoniemi et al., 2021). Its implementation has been driven by the fact that numerous firms, particularly those working for service industries, wish to increase their knowledge of customer loyalty, retention, and satisfaction in order to remain competitive (Barsy, 2017; Santouridis & Veraki, 2017). In line with Rahimi and Kozak (2017), Cruz-Jesus et al. (2019) asserted that the implementation of CRM strategies is a major marketing development, designed principally to generate and manage enduring customer relationships. This is expected to enable businesses to better understand their customers and retain them by providing an enhanced experience. Additionally, it attracts new customers, improves profitability, and reduces customer management expenses (Cherapanukorn, 2019; Shaon & Rahman, 2015; Tawinunt et al., 2015). CRM therefore serves to enhance the company’s connections with its customers to increase its market share and does so by assimilating people, processes, and technology to improve organizational performance (Cruz-Jesus et al., 2019; Sota et al., 2020; Rahimi, 2017). Enhancing the association with customers will increase customer loyalty, retention, and satisfaction (Anshari et al., 2019; Chen et al., 2020; Ngai, 2005). Although many CRM projects fail (Jaber & Simkin, 2017; Nguyen et al., 2007), it can help managers understand the core value of customers for their organization or industry, along with their needs, wants, and views in order to improve planning and implementation (King & Burgess, 2008; Salloum & Ajaka, 2013).
Numerous organizations overspend when courting new customers and underspend when striving to retain existing customers (Kotler, 2003; Padma & Wagenseil, 2018). For instance, at least 80 percent of marketing budgets is spent on attracting new customers, while the remainder is spent on retaining customers (Momanyi, 2010; Muketha et al., 2016). Thus, customer retention is a factor to which numerous firms attach little or no importance and are therefore unable to appreciate the advantages and value that customer retention provides. Research has indicated that not all retained customers are satisfied and, in some cases, only remain with the provider because there are no alternatives. Furthermore, it is evident that not every retained customer is satisfied – which reinforces the argument that it is only a lack of alternatives that persuades customers to stay with their current provider (Eriksson & Vaghult, 2000; Parawansa, 2018).
There has been increasing interest in the field of customer management (Bhat et al., 2018). Hence, customers and customer relationships are becoming the central focus of organizations, many of which will find it considerably difficult to survive without a loyal customer base (KHOA, 2020). Consequently, numerous studies from a marketing perspective have demonstrated the benefits of customer retention within organizations (Ahmad & Buttle, 2001; KHOA, 2020). Therefore, CRM is regarded as an orientation in which the customer is the crucial element that controls the system (Appiah-Kubi, 2010; Lemon & Verhoef, 2016).