sajm






The Emerging Paradigm of CRM Practices in E-Commerce Companies: A Study in the Tiruchirappalli District of Tamil Nadu

M A Parveen Banu and A Nilofer

DOI: https://doi.org/10.62206/sajm.30.4.2023.102-122

PUBLISHED : 26 Feb 2024

Abstract

This study explores the effectiveness of Customer Relationship Management (CRM) practices in e-commerce companies in the Tiruchirappalli district. The research aims to understand how CRM strategies impact customer satisfaction and loyalty, focusing on four key elements: employee behavior, quality of services and products, relationship development, and interaction management. A null hypothesis was formulated, stating that CRM practices do not significantly affect customer relationships. The Structural Equation Model (SEM) was employed for hypothesis testing using SPSS Amos 20, and various fit indices were analyzed. Results show that 65% of customers rated the user-friendliness of online portals as the most impactful CRM practice. Customer feedback systems and retention efforts followed, affecting 50% and 40% of customers, respectively. The Friedman test indicated a Chi-square value of 28.9, while SEM showed a CFI of 0.95 and an RMSEA of 0.06, all confirming the significance of these practices in customer satisfaction. Moreover, all four elements—employee behavior, quality of services and products, relationship development, and interaction management— emerged as significant predictors with p-values less than 0.05. The study demonstrates that effective CRM practices are crucial for customer satisfaction in e-commerce settings. Specific recommendations for e-commerce companies include enhancing user-friendliness, implementing robust customer feedback systems, and developing customer retention programs.

Key Words

CRM practices, Customer satisfaction, Customer retention, E-Commerce companies, Customer feedback

Author Biography

Prasanth R Kumar
Research Advisor & Assistant Professor, PG & Research Department of Commerce, National College (Autonomous), Affiliated to Bharathidasan University, Tiruchirappalli, Tamil Nadu, India. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Silky Doda
Research Scholar in Commerce, PG & Research Department of Commerce, National College (Autonomous), Affiliated to Bharathidasan University, Tiruchirappalli, Tamil Nadu, India. E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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