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The Impact of CRM Strategy on Customer Loyalty in SMEs

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  • Lena Saleh
  • Laura El Saheli

Abstract

The beauty service industry is one of the most flourishing industries in contemporary Beirut, the capital of Lebanon, as versatile demands from men and women have catered to this uplifting growth. A national scandal, however, lead to the suspension of several beauty centers, and conveyed a challenge for competitive small-medium enterprises (SME) to sustain relationships with customers over the long-run. The aim of this study was to understand the impact of customer relationship management (CRM) strategy on customer loyalty using the case of beauty centers in Beirut, Lebanon. The study employed a quantitative approach where data was collected by means of a questionnaire, from a sample of 103 customers. Four variables, as components of CRM, were measured in this study. Results of the statistical analysis verified that customer experience, employee behaviour, and value proposition have a positive impact on customer loyalty. This research provides recommendations for strategically improving relationship-oriented practices in Lebanese SMEs, particularly in the beauty sector.

Suggested Citation

  • Lena Saleh & Laura El Saheli, 2018. "The Impact of CRM Strategy on Customer Loyalty in SMEs," International Business Research, Canadian Center of Science and Education, vol. 11(11), pages 37-45, November.
    • Handle: RePEc:ibn:ibrjnl:v:11:y:2018:i:11:p:37-45
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    References listed on IDEAS

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    1. Editors, 2014. "International Journal of Systems Science," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(12), pages 1-1, December.
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    Cited by:

    1. Selamat, Moch Akbar & Windasari, Nila Armelia, 2021. "Chatbot for SMEs: Integrating customer and business owner perspectives," Technology in Society, Elsevier, vol. 66(C).
    2. Rizwan Ullah Khan & Volodymyr Saienko & Hanna Tolchieva, 2021. "Dependence of the Company’s Reputation and the Quality of Customer Relations," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 159-176.
    3. Lenka Ližbetinová & Peter Štarchoň & Dagmar Weberová & Eva Nedeliaková & Martina Juříková, 2019. "The Approach of SMEs to Using the Customer Databases and CRM: Empirical Study in the Slovak Republic," Sustainability, MDPI, vol. 12(1), pages 1-21, December.

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    More about this item

    Keywords

    Small-Medium Enterprise (SME); Customer Relationship Management (CRM); customer loyalty; beauty center;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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