The Impact of CRM on Customer Loyalty, Retention and Firm Profitability: Modelling with Structural Equations in the Case of the Pharmaceutical Industry

Abstract:

As market competition becomes more intense, a CRM system seems to be, through an integrated approach, one of the main methods to attract additional customers and improve both customer and retention. Companies that effectively implement CRM will likely improve customer loyalty and long-term profitability.

This study calls for structural equations. It explores the impact of CRM on customer satisfaction, loyalty and retention. It examines also the firm efficiency and profitability as a consequence of CRM implementation. Data for the study were collected from 195 pharmaceutical companies in Tunisia.