International Journal of Science and Research (IJSR)

ISSN: 2319-7064
ResearchGate Impact Factor (2018): 0.28 | SJIF (2019): 7.583

Effect of Customer Relationship Management

(CRM) on Customer Satisfaction
Dheeraj Anchuri
Woxsen University, Hyderabad, India, 502345

Abstract: In a highly competitive market, companies need to maintain a positive relationship with their customer. A good CRM
(customer relationship management) program that helps the company in satisfying the customer, the research study would explore
different methods and techniques for establishing effective CRM to satisfy the customers. The purpose of the study was to check the
effectiveness of customer relationship management (CRM) in retaining and satisfying customers regarding Chai Point, India. This
study shows that customer relationship management has a significant effect on customer satisfaction and both variables have positive
relationships. The company makes its CRM as strong and reliable the customer will be more satisfied and retain with the company. The
study concluded that CRM is playing a major role in increasing the market share, it enhances productivity, superior employee’s morale
in the meanwhile it improves the in-depth customer knowledge and also higher customer satisfaction to improved customer loyalty
company will also have the clear information that what are their customers, what are their needs, and what will make them more
satisfied.

Keywords: CRM, Customer Satisfaction, IT Infrastructure

1. Main Text 1.2. CRM in India

Most of the start-up companies find themselves uncertain Indian companies focus a lot more on their customers' and
about the productivity of their Customer Relationship aspect try to focus more on their relationships with customers'. But
and see it as the main threat to their marketing budget. The now the trend is changing and they are using Pull Strategy
study has been undertaken and evaluates Customer instead of using Push Strategy by sending bulk products to
Relationship Management (CRM) using Chai Point as a retail outlets. But now they have obtained. A strategy of
reference company. customized is they make product according to the demand of
the customers' and one-to-one marketing is applied, and
CRM stands for Customer relationship management. It has a Indian company choose CRM.
strategy which is used to learn more about customers' needs
and wants. CRM defines the process of creation and Chai industry had become a vital economic role in the
maintains a relationship with the business customer. CRM is development of the economic condition of the nation. It is a
a hostile process of identifying, attracting, differentiating product and service-oriented business, to be successful in the
and retaining customers'. A good relationship with the competitive market. It creates more customer satisfaction
customers' is the essence of a successful business. while dealing with the company and they should be loyal to
the company. To check the satisfaction and loyalty state of
CRM integrates supply chain to create customers' value at customers' in chai industry.
every step, either through the best benefits or with great
discounts. This results in higher profits through increased 1.3. CRM in Chai Point
business from a firm customer base.
Chai Point was able to implement CRM in its organization in
CRM is the flawless coordination between sales, customers', 2017. Chai Point has also purchased CRM software to keep
services, marketing, field support and other customer the record if their customers'.
touching function
Chai Point computer programmer has made two different
1.1. Reasons for adopting CRM types of software; Shark, boxC.in.

It intensifies competition for customers; In the economic 1.3.1. Shark: It is only used for billing and tracking down
point of few many start-up firms from Digital marketing, and the customers' details all across the outlets, and it is
many other marketing sectors learned that it is less costly to seamlessly IOT-Enabled dispensers.
retain a customer than to find a new one. By Pareto’s
Principle, it is assumed that 20%of companies’ customers 1.3.2. boxC.in: It is only used for corporate customers. Chai
generate 80% of its profits. Point has made separate accounts for each customer to have
 Increasing 10% retaining existing customers translates depth knowledge in their data. This software also helps in
into 25% or more in profits. availability of Chai anywhere anytime.
 Business intelligence becomes high expensive to acquire.
They analysed individual customers' every six months. It
 It is 5 to 10 times more expensive to acquire new
gives then a clear picture of high-value customers. Chai
customers' than obtain repeat business from an existing
customer.
Volume 9 Issue 8, August 2020
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Paper ID: SR20731100904 DOI: 10.21275/SR20731100904 141
 International Journal of Science and Research (IJSR)
ISSN: 2319-7064
ResearchGate Impact Factor (2018): 0.28 | SJIF (2019): 7.583
Point also analysis individual customers' as well as analysis data need to be interpreted correctly within the context of
of aggregate sale. business this is sufficiently done when Human Analytics has
emerged in IT infrastructure, this also plays a crucial role for
1.4. Technology supporters CRM in Chai Point success in converting data to customers' knowledge.

Customer Relationship Management (CRM) Zoho, helps to For example, Managers must increasingly cope with the vast
focus on the customer for their greater satisfaction and amount of rapidly changing and often conflicting market
retention, Zoho is an integrated, Award-winning Customer information. While Human Analytics algorithms make the
Relationship Management solution. techniques. In a correct sense for the infrastructure.

1.5. Manage Customers' Relationship The human ability:

(1) Enables companies to manage the technical and business
Zoho is a complete tool for managing and for anticipating risks associated with their investment in CRM (Bhardwaj,
the existing customers' through support needs. It enables 2000), (2) this is based on accumulated experience that takes
Chai Point to deliver by phone, email, and the web. This time to develop, and (3) results from socially complex (Meta
world-class service can quickly separate Chai Point from the et al, 1995).
competition and ensure customer loyalty for years to come.
H2: More developed human analytics (HA) in converting
1.6. CRM services by Chai Point data to customer knowledge is positively associated with
CRM capability that is superior to competitions.
Chai Point assists their benchmarking through CRM using
cross channel servicing. Producing graphs and efforts against 2.1.3. Business Architecture
other Chai Producing organizations. A sophisticated CRM system and complex human skills and
experience will have little impact on the business unless
2. Methodology for Customer Satisfaction action is taken. (1) To improve performance the outputs of
CRM it should be deployed at scale across the business, (2)
This study was quantitative and describes the impact of organizational architecture of control systems and incentives
organizational commitment. policies (Barney and Machy, 2005).

2.1. Hypothesis Development In this context of CRM, other aspects of this architecture
could include training in systems and policies and control
2.1.1 IT Infrastructure systems that focus on the relationship with customers' rather
Advancements in hardware and software provide firms with a transactional view of the customer.
a wide range of solutions designed to support CRM.
 The key IT components are the front office applications H3: More developed customer-oriented Business
which help to analyze and integrate data (Green berg, Architecture (BA) is positively associated with a CRM
2001). capability that is superior to competitors.
 Empirical evidence for performance improvements are
embedded IT to support customers' service process (Ray 3. Equation
et al, 2005).
Customer Satisfaction = (CS)
Where IT infrastructure includes embedded hardware and H1= Hypothesis from 1st Methodology
software, we propose: (1) this infrastructure can support H2= Hypothesis from 2nd Methodology
human and organizational capabilities and (2) the impact of H3= Hypothesis from 3rd Methodology
this infrastructure on CRM capability is at least partially
mediated by organizational capability: this leads to the (𝐶𝑆) = 𝐻1 + 𝐻2 + 𝐻3 = (𝐻1𝑎 + 𝐻1𝑏 + 𝐻1𝑐) + 𝐻2 + 𝐻3
following three hypotheses.
4. Research Instrument
H1a: More developed IT infrastructure is positively
associated with more developed human analytics (HA) The research instruments used in this study is questionnaire
capabilities. are respondents of the research are the employs of the firm
that who deal directly with the customers. This is based on
H1b: More developed IT infrastructure is positively the customers' satisfaction.
associated with more developed customer-oriented Business
Architecture (BA). 5. Result
H1c: More developed IT infrastructure is positively The study has used the following equation to get the
associated with a CRM capability that is superior to estimates for “Customer Relationship Management” on
competitors. “Customer Satisfaction”.
2.1.2. Human Analytics
CRM it is unreasonable to expect that an IT capability alone
is sufficient to generate performance outcome. Customer
Volume 9 Issue 8, August 2020
www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Paper ID: SR20731100904 DOI: 10.21275/SR20731100904 142
 International Journal of Science and Research (IJSR)
ISSN: 2319-7064
ResearchGate Impact Factor (2018): 0.28 | SJIF (2019): 7.583
6. Conclusion [5] Ahmed, T. M. (2005). Internet and Customer
Relationship Management in SME’s. Jayachandran, S.,
The study shows that customers' relationship management Sharma, S., Kaufman, P., Raman,“The Role of Relational
has a significant effect on customer satisfaction. The Information Processes and Technology Use inCustomer
company makes its CRM as a strong and reliable to the Relationship Management”, Journal of Marketing, 69(4),
customer, will be more satisfied and retain with the 177-192.
company. [6] Westbrook, R.A. and Oliver, R.L. (1991), “The
dimensionality of consumption emotion patterns and
So, increasing in the competitiveness of the Chai Company customer satisfaction”, Journal of Consumer Research,
has a bright future for the Chai Point in India, it is expected Vol. 18, pp. 84-91.
that the management of any Company based on Chai Point
consider the results of this study and fulfil the customer Author Profile
expectation with CRM.
Dheeraj Anchuri pursuing Bachelors of Business
Administration in Digital Marketing and E-commerce
7. Recommendations from Woxsen University.

The analysis of the findings demonstrates that CRM plays a

role, in increasing the satisfaction level of the customers and
it also increases the profitability by reducing the cost of
approaching the customers, at the same time, increases their
size of customers and on the other hand increase profits and
it will also help in attaining the competitive advantage. CRM
react as, to reach the right customer with the right message at
the right time through the right channel.

If we calculate the percentage of the customers who are

satisfied from the delivery and quality of the products/
services then 70% customer are satisfied that’s why Chai
Point should make its CRM much effective that make and
identify best customers and treat them differently, is also
result in understanding the current value of the individual
customer and their potential.

Chai Point’s management believes that CRM is important

for their field which is more than a half of the other
techniques and strategies, and that earn the highest possible
return from all sales channels and CRM also helps in
improving marketing effectiveness, while making the
methodology hypothesis as the main criteria of the CRM
infrastructure.

References
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Malandrakis, Y. (2001), “Customer satisfaction
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[4] Swanson, E.B., and Ramiller, N.C. (1997) The
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Volume 9 Issue 8, August 2020

www.ijsr.net
Licensed Under Creative Commons Attribution CC BY
Paper ID: SR20731100904 DOI: 10.21275/SR20731100904 143