Customer Relationship Management and the Performance of Selected Entrepreneurial Firms in Southwestern Nigeria

Abstract

Management of customers’ vis-a- vis their needs and expectations has been a major challenge to entrepreneurs as they strife to maximise profit and increase their market share. Customer relationship management (CRM) thus serves as an essential avenue and component needed for the growth and sustainability of small-scale businesses. This article provides a description of CRM as a means of achieving customers satisfaction and sustaining firms’ competitive position. A total of three hundred and eighteen (318) respondents participated in a survey of 45 registered medium scale entrepreneurial firms using purposive sampling across the states in south west Nigeria. Structural Equation Model was used to analyse the data. The findings revealed that information sharing with customers increases the trust and confidence customers have in firms. Long-term partnership between the companies and their customers through CRM demonstrates the level of trust, perseverance, and loyalty both enjoyed. Customer relationship management significantly influences the level of satisfaction derived by customers in companies’ product, services, and activities.

Keywords: Customer Relationship Management, Structural Equation Model, Customers, Information sharing, Long Term Partnership, Customer Satisfaction.

DOI: 10.7176/EJBM/13-3-04

Publication date: January 31^st 2021