The effect of customer relationship management on organisation sustainability

Abstract

In recent years, Customer Relationship Management has been attracting heightened attention throughout the world. Customer’s expectations of the business have increasingly ranged from maximum quality to strong levels of Customer Relationship Management with the organization sustainability. Previous research into effects of customer relationship management on organization sustainability has yielded mixed results. Research on Customer Relationship Management in the Ugandan context has however been minimal. Business managers in Ugandan Corporations have actively embraced Customer Relationship Management in recent years, but there are still questions on how Customer Relationship Management affects the performance of the employees of an organization. This research study sought to answer the question and provide information on the effect of Customer Relationship Management on organization sustainability with a focus on Uganda firms a case study of UGAFODE Microfinance Limited (MDI). A survey questionnaire was used to collect primary data on factors that influence CRM methods by UGAFODE Microfinance Limited (MDI) in their methods of ensuring good customer relationship management. Pearson’s correlations indicated that there is a strong positive relationship between; customer loyalty and organization sustainability, customer satisfaction and organization sustainability and customer service and organization sustainability is weak. The effect of employee competence relative to the impact of organization policies on organization sustainability and customer loyalty is strongly correlated. Results of the study indicated that customer relationship management is myriad factor that affects the loyalty of customers to a business and there are many other factors such as customer satisfaction, customer service and others that business managers need to take into consideration regarding organization sustainability.