The Influence of Internet-Based Customer Relationship Management on Customer Loyalty

Abstract

This research investigates the relationship between the marketing efforts of electronic customer relationship management (e-CRM) and loyalty in Hong Kong's banking industry. A quantitative approach was employed, and 119 valid questionnaires were collected from 150 respondents. All the respondents are account holders of HSBC (the Hong Kong and Shanghai Banking Corporation Limited), the largest bank in Hong Kong. Reliability testing and multiple regression analysis were used to determine the relationships between various independent and dependent variables. The results suggest that all four e-CRM marketing tactics (direct mail, interpersonal communication, preferential treatment, and tangible rewards) play important roles in building customer relationships. There were also significant relationships between the e-CRM marketing tactics and customer relationship quality. The study also found that the latter has a positive impact on customer loyalty. The research results indicate that thorough implementation of e-CRM marketing efforts will heighten customer loyalty towards HSBC.

Exploring the e-CRM – e-customer- e-loyalty nexus: a Kenyan commercial bank case study

“…Since the aforementioned positive benefits emanating from e-CRM practices are associated with customer satisfaction, it is important to create more value for customers through nurturing interpersonal relations that lead to repeat purchases that benefit both the business and consumer. The aforementioned is supported by Lam, Cheung and Lau (2013) and Bilgihan and Bujisic (2014) who argued that a positive relationship between a customer and the organisation will create customer loyalty. Faithful customers tend to conduct repeat purchases, regardless of the prices and they also likely to refer others; hence it is economically cheaper to maintain (Lam et al, 2013).…”

“…The aforementioned is supported by Lam, Cheung and Lau (2013) and Bilgihan and Bujisic (2014) who argued that a positive relationship between a customer and the organisation will create customer loyalty. Faithful customers tend to conduct repeat purchases, regardless of the prices and they also likely to refer others; hence it is economically cheaper to maintain (Lam et al, 2013). The aforementioned researchers established that the quality of customer relationship impacts positively on customer loyalty, and they further claim that systematic implementation of e-CRM will deepen customer loyalty towards a company (Lam et al, 2013).…”

“…Faithful customers tend to conduct repeat purchases, regardless of the prices and they also likely to refer others; hence it is economically cheaper to maintain (Lam et al, 2013). The aforementioned researchers established that the quality of customer relationship impacts positively on customer loyalty, and they further claim that systematic implementation of e-CRM will deepen customer loyalty towards a company (Lam et al, 2013). Safa and von Solms, (2016) opines that loyal customers are vital to the survival and success of many service industries, especially in the financial sectors, hospitality and airline.…”

“…Internet penetration globally has increased e-CRM's popularity as a communication tool and relationship-platform. Diverse forms of e-CRM tactics are being devised, and banks are using technology to facilitate this process and to exploit the opportunities (Lam et al, 2013). This has enabled banks to increase their service offerings to 24/7 without interruption.…”

The relationship between e-CRM and customer loyalty: a Kenyan Commercial Bank case study

“…The advent of new technologies has led to a shift from CRM to e-CRM, and with increasing global penetration of the internet, e-CRM has become a more popular communication tool and relationship-building platform (Lam et al, 2013). Organizations, therefore, are keen to deploy different types of e-CRM strategies to attract, maintain, and enhance customer relationships, which contribute to loyalty and the organization's success (Chess Media Group and Lieberman, 2010; Yun and Good, 2007).…”