Role of Digital Technology in Customer Relationship Management to Enhance Customer Retention

Assessing the Role of Digital Technology in Customer Relationship Management to Enhance Customer Retention
Name
Institution
Course
Professor
Date
Table of Contents Introduction. 1 Background. 1 Justification. 2 Research Gap. 2 Research Aim.. 2 Research Questions and Objectives. 2 Benefits. 3 Outline. 3 Literature Review.. 4 Introduction. 4 The Concept of Customer Relationship Management (CRM) 4 Digital Technologies in CRM... 5 a.     Social media. 6 b.     E-commerce. 6 Customer Retention in Business. 7 a.     Service Quality. 7 b.     Satisfaction. 8 Summary and Conclusion. 8 Methodology. 9 Introduction. 9 Research Design. 9 Setting. 10 Participants. 10 Materials. 10 Data Collection/ Procedure. 11 Data Analysis. 11 Limitations. 12 Potential Significance. 12 Anticipated Challenges. 12 References. 13 Assessing the Role of Digital Technology in Customer Relationship Management to Enhance Customer Retention Introduction Background Customer Relationship Management (CRM) has become an essential aspect of business due to the increasing competition in different industries. CRM is defined as a set of strategies, processes and software that can be implemented together to enhance the relationship between the business and its clients (Prakash, 2020). In terms of software, CRM complements existing information by enabling the analysis of big data obtained from years of customer interactions to provide actionable points. Furthermore, using software also improves workflows and efficiency by better understanding customer needs and thus adapting to them. On the other hand, business processes in CRM are enhanced through the appropriate structuring of relationships and communication. Processes are essential because they set a precedent for how customers expect to be treated and served when visiting the business (Buttle & Maklan, 2019). More so, return clients are considered an important part of the business since strengthening such relationships improves brand loyalty. However, companies invest more in attracting new clients as opposed to nurturing existing ones hence affecting longstanding relationships. Consequently, in a business environment, CRM is essential since it enhances customer retention, boosts cost-efficiency in marketing, and reduces competitive pressure on the firm. By understanding how customer relationships affect the business environment, companies can align their priorities since this can ultimately affect profitability (Santouridis & Veraki, 2017). Therefore, customer retention plays a significant role in determining a business's overall performance since returning customers are considered important in pushing the brand. Justification             Customer Relationship Management is a strategic aspect of any business that consistently deals with clients daily, either virtually or physically. As a result, understanding its influence on the business environment provides a pathway for creating value not only for the customer but also for the business. This will ultimately lead to increased financial performa...