Measuring CRM Effectiveness in Indian Stock Broking Services

Measuring CRM Effectiveness in Indian Stock Broking Services

Shiv Ratan Agrawal (Department of Management Studies, Sri Sri University, Cuttack, India) and Divya Mittal (Department of Management Studies, Sri Sri University, Cuttack, India)
Copyright: © 2019 |Pages: 21
DOI: 10.4018/JGIM.2019010108

Abstract

The article tried to develop a multi-item scale for analyzing CRM effectiveness (CRME) from the customer perspective in the Indian stock broking context. The results revealed that customer satisfaction could be improved through to build customer trust and customer involvement substantially by focusing on the CRM system which further influences customer retention and ultimately, customer loyalty within stockbroking services. The findings of the article will help stockbrokers and their managers for a tactical decision making of CRM system implementation and practices for customer perspective. Despite the huge investment in CRM systems by the stockbrokers, critics have remained unconvinced about the effectiveness of CRM for meeting desired business outcomes. The reason being that broking firms often perceive CRM systems as a specific technology solution rather than integrating customer needs with the firm's strategy, people and business process which generates a parallel need to develop a scale to measures CRM effectiveness in Indian stock broking services from the customer perspective.
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2. Theoretical Background Of The Study

2.1. Concept of Customer Relationship Management

Customer relationship management (CRM) refers to a set of relational practices that firms adopt to enhance customer relationships (Padmavathy et al., 2012). CRM is viewed as a systematic process to manage the customer relationship initiation, maintenance, and termination across all customer contact points (Kevork and Vrechopoulos, 2009). In addition, it is viewed as the strategic use of information, processes, technology, and people to manage the customer’s relationship with a firm (Lin et al., 2010). Some firms view CRM primarily as an investment in technology and software, whereas others treat CRM more expansively and are aggressive in developing productive relationships with customers (Smith and Chang, 2010). Moreover, the implementation of customer-related strategies is a critical factor in successful CRM programs. The previous studies showed that there is a great relationship between the technology perspective of CRM and customer-related strategies (Hillebrand et al., 2011).

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