ShodhPatra: International Journal of Science and Humanities

Customer Relationship Management (CRM) Practices and Their Impact on Customer Retention

Customer retention is a vital objective for firms seeking sustainable competitive advantage. Customer Relationship Management (CRM) — comprising strategy, processes, people, and enabling technologies — has been widely adopted to improve customer satisfaction, loyalty, and lifetime value. This paper reviews theoretical foundations and empirical evidence on CRM practices and their effects on customer retention. It synthesizes classic CRM frameworks (e.g., Payne & Frow’s CRM continuum), analytical tools (RFM, CLV), and empirical findings showing that relationship-oriented processes, customer data analytics, personalization, service quality, and trust-building positively influence retention. It also discusses mediators (customer satisfaction, trust) and moderators (industry type, firm size, technology maturity). The paper proposes a conceptual model linking CRM capabilities to retention via satisfaction and trust, outlines a rigorous mixed-methods research design for empirical testing, and draws managerial and policy implications. Limitations and future research directions, including the role of AI and privacy concerns, are presented. Key recommendations include integrating CRM strategy with analytics, measuring CLV, investing in front-line training, and designing retention-focused metrics. Keywords Customer Relationship Management; CRM; customer retention; customer lifetime value; RFM; customer satisfaction; trust; CRM technology; personalization.