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Investigating the Impact of Customer Relationship Management on Enhancing Customer Loyalty in Small Businesses
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Morteza Dalvand *   |
| M.Sc. in Business Management (Marketing), Islamic Azad University, Qeshm Branch, Qeshm, Iran |
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Abstract: (6 Views) |
| In today's competitive business environment, Customer Relationship Management (CRM) has emerged as a vital tool for attracting and retaining customers, particularly in small businesses. Developing long-term relationships with customers and enhancing their loyalty enables organizations to secure a sustainable competitive advantage in volatile markets. This research aimed to investigate the impact of Customer Relationship Management on increasing customer loyalty in small businesses and to analyze the role of key CRM components—such as service personalization, customer data analytics, and complaint management—in this process. This study is applied in terms of purpose and descriptive-analytical in terms of methodology. Data were collected by distributing 200 questionnaires among customers of small businesses in [City Name], yielding 180 valid responses for final analysis. Data analysis was conducted using Structural Equation Modeling (SEM) alongside SPSS and SmartPLS software. The results demonstrated that effective CRM has a positive and statistically significant impact on customer loyalty. Among the components, service personalization exhibited the greatest influence, while customer data analytics played a significant mediating role. Furthermore, customer demographic characteristics, such as age and purchasing history, significantly affected their perceptions of CRM quality and overall loyalty levels. To foster customer loyalty, small businesses should focus on developing intelligent CRM systems, enhancing employee communication skills, and delivering personalized customer experiences. Implementing integrated CRM strategies can pave the way for sustainable growth and consolidate the competitive standing of these businesses. |
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| Keywords: Customer Relationship Management (CRM), Customer Loyalty, Small Businesses, Service Personalization, Customer Data Analytics |
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Full-Text [PDF 1105 kb]
(4 Downloads)
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Type of Study: Research |
Subject:
General
Received: 2025/04/9 | Accepted: 2025/05/20 | Published: 2025/06/20
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