Impact of Customer Management System in Improving Customer Retention: Optimization of Negative Customer Feedback

Authors: Alireza Faed, David Forbes

Abstract:

Complaints today have the ability to retain customer loyalty using state of the art systems and strategies in customer relationship management to analyze and respond to a plethora of customer perception. The Majority of companies are not aware of the beneficiary utilization of customer complaints for the sake of quality improvements. Also, some companies have problems determining how resolution of complaints can be profitable. In this study, we will define the problems and ascertain the importance of customer management system on the companies. Furthermore, we will determine the impact of such a system on efficiency, confidence, profitability and customer complaints. Eventually, we will develop methods and address the issues. In this paper, we used an open-ended questionnaire and distributed that to 30 randomly chosen respondents which were the passengers in an airport. We also define three hypotheses for our study and we will validate each of them. Then using frequency, Chi- Square and quality control method we optimized the size of customers- negative feedback and improved the process of customer retention.

Keywords: Complaint, Complaint management system, Customer relationship management, Retention.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1077839

References:

[1] B. Stauss and A. Schoeler, "Complaint management profitability: what do complaint managers know?," Managing Service Quality, vol. 14, pp. 147-156, 2004.
[2] S. Spencer-Matthews and M. Lawley, "Improving customer service: issues in customer contact management," European Journal of Marketing, vol. 40, pp. 218-232, 2006.
[3] Y. Bolumole, et al., "The customer service management process," International Journal of Logistics Management, vol. 14, pp. 15-32, 2003.
[4] C. Fornell and B. Wernerfelt, "A model for customer complaint management," Marketing Science, vol. 7, pp. 287-298, 1988.
[5] B. Stauss, et al., Complaint management: the heart of CRM: Thompson/South-Western, Mason, Ohio, 2004.
[6] K. De Ruyter and A. Brack, "European legal developments in product safety and liability: the role of customer complaint management as a defensive marketing tool," International journal of research in marketing, vol. 10, pp. 153-164, 1993.
[7] Y. Namkung, et al., "Customer complaints in restaurants: Do they differ by service stages and loyalty levels?," International Journal of Hospitality Management, vol. In Press, Corrected Proof.
[8] V. Bosch and F. Enriquez, "TQM and QFD: exploiting a customer complaint management system," International Journal of Quality and Reliability Management, vol. 22, pp. 30-37, 2005.
[9] J. Wirtz, "Complaint Management: The Heart of CRM," Managing Service Quality, vol. 16, p. 310, 2006.
[10] P. Hidalgo, et al., "Customer retention and price matching: The AFPs case," Journal of Business Research, vol. 61, pp. 691-696, 2008.
[11] J. Schulze, et al., "7 Knowledge Enabled Customer Relationship Management," Business networking: shaping collaboration between enterprises, p. 135, 2001.
[12] R. Bose, "Customer relationship management: key components for IT success," Industrial Management and Data System, vol. 102, pp. 89-97, 2002.
[13] J. Ahn, et al., "On the design concepts for CRM system," Industrial Management and Data System, pp. 324-331, 2003.
[14] T. Hong and E. Kim, "The Selection of CRM System in Financial Institutes Using the Analytic Hierarchy Process," 2007, pp. 296-302.
[15] R. Chalmeta, "Methodology for customer relationship management," Journal of System and Software, vol. 79, pp. 1015-1024, 2006.
[16] H. H. Chang and S. W. Chen, "The impact of customer interface quality, satisfaction and switching costs on e-loyalty: Internet experience as a moderator," Computers in Human Behavior, vol. 24, pp. 2927-2944, 2008.