The Effective Customer Relationship Management of Business to Business in Improving Customer Satisfaction and Customer Retention

DOI

10.2991/978-94-6463-443-3_83How to use a DOI?

Keywords

Customer Retention; Customer Satisfaction; Customer Relationship Management

Abstract

The attainment of revenue targets holds paramount importance for companies, as it not only ensures their survival but also facilitates sustainable growth. A pivotal factor influencing the realization of these revenue objectives is customer retention, which exhibits a strong correlation with customer satisfaction. In turn, customer satisfaction is markedly influenced by implementing effective Customer Relationship Management (CRM) strategies. The primary objective of this research endeavor is to investigate the intricate interplay between CRM variables, Customer Satisfaction (CS), and Customer Retention (CR). The empirical analysis draws upon responses from a sample of 107 customers who have engaged in cooperative agreements with the company under study. These participants were surveyed through a meticulously designed questionnaire. The research hypothesis was tested employing the Partial Least Square (PLS) procedure, a robust statistical tool for assessing the relationships within complex models. The findings of this study reveal several significant insights. Firstly, the CRM variable exerts a positive influence on the CS variable, underscoring the pivotal role of effective customer relationship management in fostering customer satisfaction. Furthermore, both the CRM and CS variables exhibit positive effects on CR, implying that satisfied customers are more likely to continue their patronage. Intriguingly, the study uncovers a direct negative impact of the CRM variable on CR, suggesting that while CRM enhances satisfaction, an overemphasis on CRM may inadvertently discourage customer retention. In light of these results, practical recommendations emerge. Companies are advised to prioritize the maintenance and enhancement of the quality of their customer relationship management initiatives. A keen focus on CRM will bolster customer satisfaction and contribute positively to customer retention. Additionally, organizations should attentively consider feedback garnered through their customer relationship systems as a valuable resource for improving service quality and refining customer relations strategies. These proactive measures will undoubtedly contribute to the overarching goal of achieving revenue targets and fostering sustainable growth in a competitive business landscape.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Budi Prakoso
AU  - Ratih Hurriyati
AU  - Heny Hendrayati
PY  - 2024
DA  - 2024/06/26
TI  - The Effective Customer Relationship Management of Business to Business in Improving Customer Satisfaction and Customer Retention
BT  - Proceedings of the 8th Global Conference on Business, Management, and Entrepreneurship (GCBME 2023)
PB  - Atlantis Press
SP  - 638
EP  - 644
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-443-3_83
DO  - 10.2991/978-94-6463-443-3_83
ID  - Prakoso2024
ER  -