The impact of Customer Relationship Management (CRM) on a beer manufacturing company’s sales performance
DOI:
https://doi.org/10.26661/2522-1566/2023-2/24-04Keywords:
Customer Relationship Management, sales, manufacturingAbstract
The shift away from an economy focused on transactions and towards one based on relationships has taken place worldwide, and this movement can be observed quite plainly in South Africa's business environment. Individualized customer care is becoming an increasingly important factor for customers who now have higher expectations than before. Therefore, this study analysed the impact of customer relationship management (CRM) on a beer manufacturing company’s sales performance. A quantitative, cross-sectional descriptive research design was adopted to collect data from a stratified random sample of 172 liquor outlet owners within the Durban region. The respondents can be categorised as retailers, distributors, On-Con and Off-Con. The findings show that customers were generally satisfied with the trading environment, order placing, delivery and information sharing. The use of data analytics and technology in general should be put at the forefront of any effective customer relationship management (CRM) solution for the firm. This might be a very helpful tool for organization in its attempts to mould its business environment to better suit the expectations of its customers and clients. This study has contributed to the literature on customer relationship management in the manufacturing sector, with specific reference to South Africa.
JEL Classification: M31, M11, L66.
References
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Agrawal, S., De Smet, A., Lacroix, S. and Reich, A., (2020). To emerge stronger from the COVID-19 crisis, companies should start reskilling their workforces now. McKinsey Insights (Issue May).
Alnawas, I. and Hemsley-Brown, J., (2019). Market orientation and hotel performance: investigating the role of high-order marketing capabilities. International Journal of Contemporary Hospitality Management.
Alzoubi, H., Alshurideh, M., Kurdi, B., Akour, I. and Aziz, R., (2022). Does BLE technology contribute towards improving marketing strategies, customers’ satisfaction and loyalty? The role of open innovation. International Journal of Data and Network Science, 6(2), pp.449-460.
Amnur, H., (2017). Customer relationship management and machine learning technology for identifying the customer. JOIV: International Journal on Informatics Visualization, 1(1), pp.12-15.
Anshari, M., Almunawar, M.N., Lim, S.A. and Al-Mudimigh, A., (2019). Customer relationship management and big data enabled: Personalization & customization of services. Applied Computing and Informatics, 15(2), pp.94-101.
Avasilcăi, S., (2020). How Do SMEs Manage to Gain New Markets? Principles to Enhance the Innovation Management System: The Case of a Romanian Manufacturer. In Innovation in Sustainable Management and Entrepreneurship: 2019 International Symposium in Management (SIM2019) (pp. 555-566). Springer International Publishing.
Ayyagari, M.R., (2021). A framework for analytical CRM assessments challenges and recommendations. International Journal of Information, Business and Management, 13(2), pp.108-121.
Bresciani, S., Ferraris, A., Romano, M. and Santoro, G., (2021). Shifting Paradigms in Modern Marketing1. In Digital Transformation Management for Agile Organizations: A Compass to Sail the Digital World (pp. 71-96). Emerald Publishing Limited.
Casalo, L. C. F. D. M. G., (2011). The generation of trust in the online services and product distribution: The case of Spanish E-commerce. Journal of Electronic Commerce Research, 2(8), pp. 199-213.
Edwards, J., (2010). Get it together with collaborative CRM. INSIDECRM. [Online] Available at: http://www.insidecrm.com/features/collaborative-crm-112907/ [Accessed 22 June 2022].
Ernst, H., Hoyer, W.D., Kraft, M. and Krieger, K. (2011). Customer relationship management and company performance – the mediating role of new product. Journal of the Academy of Marketing Science, 39(2): 290-306.
Hedley, A., (2021). Client journey mapping as a source of sustainable competitive advantage. The Client Experience, p.35.
Hride, F.T., Ferdousi, F. and Jasimuddin, S.M., (2022). Linking perceived price fairness, customer satisfaction, trust, and loyalty: A structural equation modeling of Facebook based e‐commerce in Bangladesh. Global Business and Organizational Excellence, 41(3), pp.41-54.
Hsu, C. L., (2010). Effect of commitment and trust towards micro-blogs on customer behavioral intention: A relationship marketing perspective.. Journal of Electronic Business Management, 6(14), pp. 292-303.
Jayam, R. and Radha, J., (2013). Factors associated with success and failures in CRM. International Journal, 1(6), pp.163-168.
Li, R.C. and Tee, M.L., (2021). Developing an Implementation Framework for Automated Customer Support Service in Collaborative Customer Relationship Management Systems. In 2021 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. 1092-1096). IEEE.
Lubis, A., Dalimunthe, R., Absah, Y. and Fawzeea, B.K., (2020). The influence of customer relationship management (CRM) indicators on customer loyalty of sharia based banking system. J. Mgt. Mkt. Review 5(1) 84 – 92, Doi.org/10.35609/jmmr.2020.5.1(8)
Lynn, M. &. S. M. C., (2011). Is the customer always right? The potential for racial bias in customer evaluations of employee performance. [Online] Available at: http://scholarship.sha.cornell.edu/articles/106 [Accessed 22 May 2018].
McCarthy, J., Rowley, J., Jane Ashworth, C. and Pioch, E., (2014). Managing brand presence through social media: the case of UK football clubs. Internet research, 24(2), pp.181-204.
Mechinda, P., (2011). The impact of service climate and service provider personality on employees' customer-oriented. International Journal of Business Science, 02(13), pp. 22-26.
Miake, A.H.D.S., Carvalho, R.B.D., Pinto, M.D.R. and Graeml, A.R., (2018). Customer knowledge management (CKM): Model proposal and evaluation in a large Brazilian higher education private group. BBR. Brazilian Business Review, 15, pp.135-151.
Minta, Y. (2018). Link between satisfaction and customer loyalty in the insurance industry : Moderating effect of trust and commitment. Journal of Marketing Management, 6(2), 25–33. https://doi.org/10.15640/jmm.v6n2a3
Nitu, C.V., Tileaga, C. and Ionescu, A., (2014). Evolution of CRM in SCRM. Economics, Management and Financial Markets, 9(1), p.303.
Nguyen, B., (2011). The dark side of CRM. The Marketing Review , 11(2), pp. 137-149.
Nguyeni, B. N. L. W. S., (2014). The Customer Relationship Management Paradox: Five Steps to Create a Fairer Organisation. Social Business an interdisciplinary journal, 4(16) pp. 207 – 230.
Nguyen, B., Jaber, F. and Simkin, L. (2022). A systematic review of the dark side of CRM: the need for a new research agenda. Journal of strategic marketing, 30(1), pp.93-111.
Nieuwoudt, T. (2020). Route-to-market in emerging markets: Framework and key steps. Available online: https://thesupplychainlab.blog/2020/11/03/route-to-market-in emerging-markets-framework-and-key-steps/ (Accessed 20 March, 2023).
Paliouras, K. and Siakas, K.V., (2017). Social customer relationship management. International Journal of Entrepreneurial Knowledge, 5(1).
Pinto, P., Hawaldar, I.T. and Pinto, S., (2021). Antecedents of behavioral intention to use online food delivery services: An empirical investigation.
Resom, S., (2020). The Impact of Customer Relationship Management on Customer Loyalty in The Case of Dashen Bank SC (Doctoral dissertation, ST. MARY’S UNIVERSITY).
Saravanan, D. and Kaur, P., (2022). Customer Relationship Management in Banking in the UK Industry: Case of Lloyds Bank. ECS Transactions, 107(1), p.14325
Sekaran, U. and Bougie, R. (2013) Research Methods for Business: A Skill-Building Approach. 6th Edition, Wiley, New York.
Slack, N., Singh, G. and Sharma, S., (2020). Impact of perceived value on the satisfaction of supermarket customers: developing country perspective. International Journal of Retail & Distribution Management, 48(11), pp.1235-1254.
Sohail, M., (2012). The antecedents of relationship marketing and customer loyalty: A conceptual framework to determine outcomes. International Journal of Business Science, 6(18), pp. 22-28.
SOVTECH. (2022). The Importance Of CRM In South African Businesses. Available online: https://www.sovtech.co.za/blog/crm-in-sa [Accessed 08 March, 2023].
Tien, N.H., Diem, P.T., Van On, P., Anh, V.T., Van Dat, N., Hung, N.T. and Tam, B.Q., (2021). The formation and development of CRM system at Thien Hoa electronics supermarket in Vietnam. International Journal of Research and Growth Evaluation, 2(4), pp.752-760.
Varadarajan, R., (2020). Customer information resources advantage, marketing strategy and business performance: A market resources based view. Industrial Marketing Management, 89, pp.89-97.
Viljoen, M. B. J. A. B. A. D., (2005). The Use of Technology in Customer Relationship Management. International Journal of Business Science, 05(23), pp. 259 – 265.
Wailgum, T. (2017). What is a CRM system? Your guide to customer relationship management.. [Online] Available at: https://www.cio.com/article/2439505/customer relationshipmanagement/customer-relationship-management-crm-definition-and solutions.html [Accessed 10 May 2022].
Wieneke, F. (2021). Beer Industry in South Africa – Overview. Available online: https://enterafrica.com/blogs/news/beer-industry-in-south-africa-overview [Accessed 08 March,2023].
Yulianto, A., (2022). Analysis Of Marketing Strategies In Increasing Consumer Buying Interest In An Islamic Economic Perspective On Avian Brands Paint Products During The Covid 19 Pandemic. American Journal of Economic and Management Business (AJEMB), 1(1), pp.1-15.
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Published
2023-06-19
Issue
Section
Marketing
How to Cite
Cele, Z.E., Msosa, S.K. and Ntshangase, B.A. (2023) “The impact of Customer Relationship Management (CRM) on a beer manufacturing company’s sales performance”, Management and Entrepreneurship: Trends of Development, 2(24), pp. 37–49. doi:10.26661/2522-1566/2023-2/24-04.
