What is the effect of customer relationship management on customer loyalty in the Belgian retail environment?

Abstract

This research shows how CRM serves as a successful strategy in the development of customer loyalty. For the scope of this research, the focus was put on the Belgian fashion retail environment. The framework by De Wulf et al. (2001) serves as the basis for this research by investigating the four traditional CRM tactics existing of direct mail, preferential treatment, interpersonal communication, and tangible rewards. However, the rise of innovative technologies cannot be ignored. Therefore the model is extended with social CRM tactics, including customer’s perceived interactivity, customer’s perceived personalization, and customer’s perceived innovativeness. These relationship tactics resulting in perceived relationship investment are aimed at establishing and maintaining long-term and qualitative relationships between the buyer and the seller—the effect of perceived relationship investment, resulting from CRM tactics, on the relationship quality. The overall quality of the relationship is operationalized through relationship satisfaction, trust, and commitment. Two moderating factors are researched in the process of enhancing relationship quality through perceived relationship investment, namely product category involvement and customer relationship proneness. Finally, the aim of this research is to find the effect of CRM on customer loyalty. The composite measurement approach of Dick and Basu (1994) is used by combining both attitudinal loyalty and behavioral loyalty to generate an all-encompassing view on loyalty.