Customer Relationship Management and Customer Loyalty: A Theoretical Perspective

Abstract

Organisations must differentiate their offerings in today's technology-driven, highly competitive business environment to gain a competitive advantage. Apart from differentiating their offerings through innovation or operational excellence, organisations recognise that a loyal customer base is also the source of competitive advantage. Thus, effectively managing customer relationships by understanding, serving, and delighting them have never been more imperative. As a result, managing customer relationships has risen to the top of the priority list for long-term business success. Recognising the significance of managing customer relationships has prompted businesses to seek practical tools to serve customers in a highly competitive environment. Organisations are leveraging technology to provide highly interactive and highly personalised customer experiences. There is a need to refine the fields of Customer Relationship Management and Customer Loyalty, despite the widespread interest in them among academics and industry professionals. The lack of a common definition and clear conceptual boundaries between customer relationship management and customer loyalty is a major room for development. This study helps fill in some of the gaps in our knowledge of customer loyalty and relationship management. This was accomplished by integrating concepts from numerous bodies of literature. By (1) aiding researchers in clarifying the conceptual boundaries of customer relationship management and Customer Loyalty and (2) providing a theoretical framework that could aid researchers in framing their research efforts in the area, this paper should help future research in the field of customer relationship management. Additionally, it aids managers in addressing some of the challenges they confront in regards to the connection between CRM and client loyalty.