International Journal of Economics and Management Research
Vol. 3 No. 2 (2024): August: International Journal of Economics and Management Research

Effect of Customer Relationship Management on Customer Satisfaction in SMEs Business




Article Info

Publish Date
30 Dec 2025

Abstract

This study examines the effectiveness of Customer Relationship Management (CRM) in a single F&B business that attracts a high number of first-time visitors yet struggles to convert them into repeat customers. The study aimed to analyze the relationship between CRM dimensions, customer satisfaction, and customer retention and identify the CRM dimension that shows the weakest performance. A quantitative approach was applied. Data from 100 respondents were collected through a structured Likert-scale survey measuring three CRM dimensions—Customer Knowledge Management (CKM), Customer Interaction Management (CIM), and IT-CRM—along with customer satisfaction and retention. The dataset was analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) to evaluate both direct and indirect effects within the proposed model. The results show that all CRM dimensions exert a significant positive influence on customer satisfaction, with CKM emerging as the strongest predictor, followed by CIM and IT-CRM. Customer satisfaction, in turn, positively affects retention intention, confirming the mediating role of satisfaction within the CRM–retention relationship. Among the CRM dimensions, IT-CRM received the lowest performance scores, indicating that digital enablement and CRM-related technology represent the weakest capability within the firm and require priority improvement. These findings emphasize the importance of strengthening CRM dimensions—particularly CKM and IT-CRM—to enhance customer satisfaction and reinforce retention intentions. The study contributes empirical evidence to CRM research within small F&B contexts by demonstrating how different CRM components influence satisfaction-driven loyalty outcomes and by highlighting the specific capability gaps that hinder the firm’s ability to retain customers effectively.

Copyrights © 2024






Journal Info

Abbrev

ijemr

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

International Journal of Economics and Management Research, an electronic international journal, provides a forum for publishing the original research articles, review articles from contributors, and the novel technology news related to management, accounting and economic. This journal encompasses ...