Final Project Report Telenor

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CUSTOMER RELATIONSHIP MANAGEMENT AND ITS CONSEQUENCES ON THE ORGANIZATIONS PERFORMANCE AND PROFITABILITY

CHAPTER: 1

1. INTRODUCTION

1.1 Organizational Concept


The Expansion of higher level of organizations and industries focusing on different market levels
increasing day by day in Pakistan. Although Pakistan have limited resources to utilize maximum
level of new technological advancements. But beside this Organization are enlarging as small
medium and large companies forming. These formation increase the competitiveness and
remarkable focus on customers for whom they are forming. Before we begin we will discuss here
the Organizational concept in Pakistan.

1.2 Definition
Social unit of people that is structured and managed to meet a need or to pursue collective goals.
All organizations have a management structure that determines relationships between the
different activities and the members, and subdivides and assigns roles, responsibilities,
and authority to carry out different tasks. Organizations are open systems they affect and are
affected by their environment.

1.3 Organization Meaning


The best way to derive the meaning of the term "business organization" is to focus on each word
separately. Organization is a broader term, as it includes businesses and other groups of people not
organized for commercial purposes. Clubs and sports teams are examples of non-business
organizations. Organizations have a specific structure and hierarchy. People and systems create a
culture within the organization and guide its operation. Different organizations have different
policies, work flows and objectives.

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1.4 Business Meaning


All businesses have commercial objectives. For-profit businesses sell products or services to
generate revenue and earnings. Success depends on the ability to gain more in revenue.

1.5 System View


Definitions of organizations typically emphasize the systematic approach used to achieve goals.
Businesses typically begin with a hierarchy that establishes structure and order in communication
and workflow. Business leaders work to establish a business mission, vision, values, objectives
and strategies. These establish the direction for the organizational system. People, processes and
policies are used to fulfill the mission and strategies. The effectiveness of a business organization
often relates to the ability of leaders to get all departments and employees to work together toward
company objectives.

2. Introduction (Customer Relationship Management)


In the past the organizations just want to make profits and profits only. There was no ideas to
expand business or to retain your old customers they were just profit oriented But now these days
it was feel to make some different for customers because companies are running on the heads of
their customers. A new idea was introduce and companies change their strategies and become
customer oriented. They focus on customer needs and want. They feel what the customer actually
Expect from us. So world changes toward customization and every company wants to satisfy their
customer by providing value to customers and advocate your customer. This is for to make long
term relations with customers to retain them and get more benefits from them. This is all about
customer relationship management CRM model to apply and by these variables company can
maximize their profitability and company or firm’s value. Now customer relationship management
is used worldwide. Many authors has written about it and many researchers make researches on
CRM. Thornton (2005) says if your customer is satisfied then it will be quality management.
(2003) Ahn et al says company performance is depend on that how they can managing the
customer’s relations. (2006) Palmatier says customer relations are more important to achieve
firm’s goals. These all studies and other studies says us about the importance of customer
relationship management CRM.
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In this study on which the research is based the dependent variable is the Firm’s Performance and
independent variables under the umbrella of CRM are as follows:
 Customer satisfaction
 After sale service
 Customer advocacy
 Turnover
These factors are strongly related to influence Firm’s Performance and profitability.

2.1 CRM Definition


The process of developing a cooperative and collaborative relationship between the buyer and
seller is called customer relationship management. It is defined by Couldwell (1998) as, “a
combination of business processes and technology that seeks to understand a company’s customers
from the perspective of who they are, what they do and what they’re like.”

Sin et al. (2005) has a similar definition to Parvatiyar and Sheth (2001) about CRM. They defined
CRM as “a comprehensive strategy and process that enables an organization to identify, acquire,
return and nurture profitable customers by building and maintaining long-term relations.

Customer: The customer is the only source of the company’s present profit and future growth.
However, a good customer, who provides more profit with less resource, is always
scarce because customers are knowledgeable and the competition for them is fierce. Sometimes i
t isdifficult to distinguish who the real customer is because the buying decision is frequently a
collaborative activity among participants of the decision making process. (Wyner
1999).Information technologies can provide the abilities to distinguish and manage customers;
CRM is more of a marketing approach that is based on customer information.

Relationship: The relationship between a company and its customers involves a continuous bi-
directional communication and interaction. The relationship can be short-term or long-term,
continuous or discrete, and repeating or one-time. Relationship can be attitudinal or behavioral.
Even though customers have a positive attitude toward the company and its products, their buying
behavior is highly situational. For example, the buying pattern of airline tickets depends on
whether the person buys it for family vacation or corporate business trip. CRM involves managing

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relationships that exist among customers and business owners, so that it will
be profitable and mutually beneficial to both parties. Customer lifetime value (CLV) is a tool for
measuring such a relationship.

Management: Customer Relationship Management (CRM) is not an activity only within a


marketing department. Rather, it involves continuous corporate change in culture, attitude and
processes. The customer’s detail that is obtained is being transformed into corporate knowledge
that leads to activities that take advantage of the details and of market opportunities. CRM requires
a comprehensive change in the organization and its people. (Ngai, 2005)

2.2 Concept of CRM

CRM is a business strategy directed to understand, anticipate and respond to the needs of an
enterprise's current and potential customers in order to grow the relationship value.(Swift, 2000)
defined CRM as a method of understanding the customer behavior through intense communication
with him/her to improve the performance which is represented in attracting the customer, keeping
him/her and increasing his/her loyalty and profitability. Parvatiyar &Sheth, 2002) mentioned that
CRM is a comprehensive strategy that includes the process of acquiring certain customers, keeping
them and cooperating with them to create a distinguished value for both the company and the
customer.

2.3 Types of CRM


There are the five functional types of CRM.

 Analytical CRM
 Collaborative CRM
 Operational CRM
 Geographic CRM
 Sales Intelligence CRM

2.3.1 Analytical CRM


Analytical CRM is designed to analyse deeply the customer’s information and data and unwrap or
disclose the essential convention and intension of behaviour of customers on which capitalization
can be done by the organization.

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2.3.2 Collaborative CRM


Collaborative CRM deals with synchronization and integration of customer interaction and
channels of communications like phone, email, fax, web etc. with the intent of referencing the
customers a consistent and systematic way.

2.3.3 Operational CRM


Operational CRM is mainly focused on automation, improvement and enhancement of business
processes which are based on customer-facing or customer supporting.

2.3.4 Geographical CRM

Geographic CRM (GCRM) combines geographic information system and traditional CRM.
Geographic data can be analysed to provide a snapshot of potential customers in a region or to plan
routes for customer visits.

2.3.5 Sales Intelligence CRM


Top-performing sales organizations are meeting the challenges of identifying the most likely
buyers of their products and services through the deployment of sales intelligence solutions that
introduce a wide variety of data streams to their front-line staff. By empowering their sellers with
better information about their prospect companies, markets and individuals, these firms are able to
maximize their chances of hitting quota, and at the same time create efficiencies within the sales
operations environment.
2.4 Purpose of CRM
The focus of CRM is on creating value for the customer and the company over the longer term.
When customers value the customer service that they receive from suppliers, they are less likely
to look the alternative suppliers for their needs. CRM enables organisations to gain ‘competitive
advantage’ over competitors that supply similar products or services.

2.5 Importance of CRM


Today’s businesses compete with multi-product offerings created and delivered by networks,
alliances and partnerships of many kinds. Both retaining customers and building relationships with
other value-adding allies is critical to corporate performance. The adoption of CRM. is being

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fuelled by a recognition that long-term relationships with customers are one of the most important
assets of an organization.

2.6 BENEFITS OF CRM


With the help of CRM, organizations can reduce costs, because the right things are being done (i.e.
effective and efficient operation). Organizations can increased customer satisfaction and build
strong relations with them, because they are getting exactly what they want (i.e. meeting and
exceeding expectations).Organizations can also gain maximum Growth in numbers of customers
and use Maximisation of opportunities (e.g. increased services, referrals, etc.) with the help of
CRM. Organizations can easily increase access to a source of market and competitor information
and highlighting poor operational processes and gain maximum Long term profitability and
sustainability.

7 Why did CRM DEVELOP?


The 1980’s onwards saw rapid shifts in business that changed customer power, purchasing
behaviour and Supply exceeded demands for most products. Moreover, Sellers had little pricing
power. The only protection available to suppliers of goods and services was in their relationships
with customers.

2.8 WHAT DOES CRM INVOLVE?


Organisations must become customer focused and must be prepared to adapt market research to
assess customer needs and satisfaction and delivers them in an efficient and effective way.

2.9 Implementation of CRM


When introducing or developing CRM, a strategic review of the organisation’s current position
should be undertaken and organisations need to address four issues: 1. what our core business is
and how will it evolve in the future? 2. What form of CRM is appropriate for our business now
and in the future? 3. What infrastructure do we have and what do we need to support the future
organisation needs? 4. What vendors and partners do we need to choose?

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2.10 Process model to Implement CRM

2.11 INFORMATION TECHNOLOGY AND CRM


Technology plays a pivotal role in CRM. Technological approaches involving the use of databases,
data mining and one-to-one marketing can assist organisations to increase customer value and their
own profitability. This type of technology can be used to keep a record of customer’s names and
contact details in addition to their history of buying products or using services. This information
can be used to target customers in a personalised way and offer them services to meet their specific
needs. This personalised communication provides value for the customer and increases customer’s
loyalty to the provider.

2.12 EXAMPLES
2.12.1 Loyalty cards

The primary role of a retailer loyalty card is to gather data about customers. This in turn leads to
customer comprehension and cost insights (e.g. customer retention rates at different spending
levels, response rates to offers, new customer conversion rates, and where money is being wasted
on circulars), followed by appropriate marketing action and follow-up analysis.

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2.12.2 CRM software Front office solutions


Many Telecommunication organizations use CRM software to store all of their customer's details.
When a customer calls, the system can be used to retrieve and store information relevant to the
customer. By serving the customer quickly and efficiently, and also keeping all information on a
customer in one place, a company aims to make cost savings, and also encourage new customers.

2.12.3 FACE-TO-FACE CRM


CRM can also be carried out in face-to-face interactions without the use of technology. Staff
members often remember the names and favourite services/products of regular customers and use
this information to create a personalised service for them. However, face-to-face CRM could prove
less useful when organisations have a large number of customers as it would be more difficult to
remember details about each of them.

3. Telenor Pakistan

3.1 Company Profile


Telenor Pakistan is 100% owned by the Telenor Group, an international provider of high quality
voice, data, content and communication services in 13 markets across Europe and Asia. Telenor
Group is among the largest mobile operators in the world with 180 million mobile subscriptions
and a workforce of approximately 33,000. Telenor Pakistan has reported a subscriber base of over
36 million, making it Pakistan's second largest mobile operator. The company acquired the GSM
license in 2004 and began commercial operations on March 15, 2005. So far, it has invested over
USD 2.3 billion in the local economy and has created 2,400 direct and 25,000 plus indirect jobs.

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It also has a network of over 200,000 retailers, franchises and sales & service centers, thus
providing means of livelihood to thousands of Pakistanis. Over Rs.147 billion in various forms of
direct and indirect taxes have been contributed to the national exchequer by Telenor Pakistan since
the beginning of its operations in 2005. Telenor Pakistan's corporate headquarters are in Islamabad,
with regional offices in Karachi, Lahore, Faisalabad, Multan, Hyderabad and Peshawar.

3.2 Mobile Financial Services


Telenor Pakistan acquired 51% of Tameer Microfinance Bank in November 2008 and in 2009,
launched Pakistan’s first and to date the largest Mobile Financial Services brand 'Easy paisa'. In
February 2014, Easy paisa won two GSMA awards at the Mobile World Congress in Barcelona
Spain. It was honored the ‘Best Mobile Money Service in the World’ and ‘Best Mobile Money
Service for Women in Emerging Markets.'

3.3 Internet Services


Telenor Pakistan took part in the spectrum auction held on April 23, 2014 and acquired the license
to launch 3G services in Pakistan for USD 147.5 million. With the ambition of bringing ‘Internet
for All’, the company started aggressive rollout of 3G services across urban and rural areas of
Pakistan. Today, Telenor Pakistan is the fastest growing 3G network in Pakistan and expanded the
3G coverage area to 45 cities by the end of October 2014. Telenor Pakistan currently serves over
1.3 million 3G customers across Pakistan. Telenor Pakistan provides also wide EDGE connectivity
across the country. It has one of the largest data networks (GPRS) in Pakistan providing Internet
services to customers.

3.3 Corporate Responsibility


In addition to our focus on extending the benefits of mobile communications, Telenor Pakistan
contributes to society through selected social investments that are focused on long-term
partnerships that can contribute to lasting change. Focus areas for Telenor Pakistan are; Disability,
Education, Health, Emergency Response and Employee Volunteerism.

Currently, Telenor Pakistan is partnering with Plan international to rehabilitate 44 partially


damaged, flood affected, government middle schools across Pakistan to benefit more than 10,000
students. PKR 145 million have already been allocated to improve the infrastructure of school

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buildings, provide water sanitation & hygiene (WASH) facilities, construct IT labs, install solar
electrification and in house maintenance of the facilities. The school improvement plan also
includes teacher/student training on use of ICT for education and improved conceptual clarity
through Telenor m-learning service as well as e-education content. “Khuddar Pakistan” is Telenor
Pakistan's flag ship corporate responsibility program which aims to create dignified opportunities
for persons with disabilities. The purpose is to become the most disabled-friendly organization in
Pakistan in terms of employment, service, and community support.

3.4 Vision
3.4.1 Empower societies
We provide the power of digital communication, enabling everyone to improve their lives, build
societies and secure a better future for all.

3.5 Mission
3.5.1 We’re here to help our customers
We exist to help our customers get the full benefit of being connected. Our success is measured
by how passionately they promote us.

3.6 Products
Telenor provide two types of products which are prepaid packages and postpaid packages. Prepaid
packages include Dejuice and TalkShawk. While postpaid packages are Persona individual and
Persona karobar.

3.7 Services
The Telenor Group provides a wide range of innovative services that are available throughout the
world. Here is a selection of these services.

3.7.1 Mobile Sports

And he scores!!! You just got a text message alerting you about a sportive highlight. Luckily you
don’t have to wait until you get home to watch that winning moment – you can watch it directly
on your mobile.

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3.7.2 Mobile Music

Right now there are 1 million songs ready to download to your mobile. You can share these digital
rights management-free songs with your friends and family or transfer them to your mobile phone,
mp3 player and PC. Share that funky music!

3.7.3 Mobile TV

Keep your favorite TV shows available in your pocket and watch them anytime, anywhere. You
can easily access live TV channels on the move so you don’t have to miss out on any of the action.
Keep yourself updated on news, sports, entertainment and more, directly on your own mobile
phone.

3.7.4 Mobile Communities

Get out and about, and stay connected and in touch with your friends. With Telenor you can access
communities such as Windows Live MSN and Facebook on your mobile and keep your friends
close anytime, anywhere.

3.8 Research-products in near future

Working with academic and industrial partners worldwide, Telenor is constantly developing,
testing and demonstrating new mobile services and technology solutions. The Telenor Research &
Innovation unit is an innovation hub for the Telenor Group. With three locations in Norway and a
satellite in Kuala Lumpur, Malaysia, Telenor R&I employ 236 people from 23 countries.

3.9 Culture in Telenor

Telenor has an Adaptability Culture, with flexibility being the need of the organization and strategic
focus being external. The organization has a clear vision, with the goal of increasing growth,
profitability, and market share. The employees are paid for performance. The individual employees
are made responsible for contributing in gaining the organization's goal, and in return they are rewarded
with incentives thus keeping the employees motivated. The organization has Award Functions, as a
part of the organization's culture. Primarily the culture comes from the top management. CEO of
Telenor Pakistan is humble and cooperative. The employees get the message that if the top

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management is so accommodating then the employees should behave similarly. What is important
to the CEO becomes important for employees to identify completely with the organization. There
are four foreigners in the top management but this does not create communication barriers. They
are extra humble to others while individuals of a local origin are extra sensitive to them so no one
feels alienated. The values of humbleness and free interaction in putting forth ideas lead to a
harmonious culture and efficient communication. The management is easily accessible to discuss
various issues. It is difficult to distinguish between them as the culture is so homogeneous that it
keeps everyone at par with others.

3.10 Organizational Structure

The structure of Telenor is functional as there are seven departments. A Senior Executive Vice
President or Executive Vice President heads every department. Each executive in charge is responsible
for all the services that are related to him. Every department is headed by a separate manager, which
controls overall operations of that department. For maximum efficiency, the overall structure of
organization is functional as all human knowledge, skills and abilities with respect to specific
activities are consolidated in a single department.

3.11 Hierarchical Levels


There are seven hierarchical levels as the size of the organization approaches 2500 to 3000
employees. Roles and responsibilities are clearly defined at the time of joining the organization.
Employees are selected against defined criteria. Roles can be added later but employees have a
fair idea about their job responsibilities from the beginning.

CEO

Vice Presidents

Managers

Assistant Managers

Executives

Officers

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3.12 Technology

Telecommunication industry is influenced heavily by the technology introduced and being used in the
market by the company and its competitors. So far Telenor is dealing well with this factor and it is far
ahead as compared to its competitors. Mobile TV is one example and Edge service in another one.
GPRS and WAP is faster as compared to other networks. So, Telenor is having no problems related to
technologies.

3.13 Competitive Advantage


In order to gain a competitive advantage one has to align competences and strategies. Highly
motivated employees and flexible culture enables them to achieve an edge over competitors.

3.14 Major Competitor

As at 30 June 2008, Telenor Pakistan had a market share of approximately 20%. In addition to
Telenor Pakistan, there are five other mobile operators in Pakistan: Mobilink, Ufone, Warid, Zong
(formerly Paktel) and Instaphone. According to data provided by the Pakistan Telecommunication
Authority (PTA), as at 30 June 2008 Mobilink was the largest cellular mobile operator in Pakistan
with a market share of approximately 37%, Ufone had a market share of approximately 20%,
Warid had a market share of approximately 17%, Zong had a market share of approximately 4%,
and Instaphone had a market share of approximately 0.4%.

Parameters Mobilink Telenor


Product Life Cycle Maturity Growth
Market share % 37% 20%

Coverage 900 cities 1100 cities


Product Portfolio Jazz Octane, Mobilink TalkShawk, Telenor
Indigo, Ladies First. Azadi, Djuice

Customer Base 17.2 million 3.6 million

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3.15 Market Share of Telenor

3.16 Customer Relationship Management Strategies

3.16.1. Retention Strategy


Customer retention is the key to success and objective of any organization. Quality has shown
strong relationship with the customer retention with the services. Other factors like customer
services (care), customer attraction and interaction and customer loyalty has also shown
relationship with the over.

3.16.2 Welcome strategy


Telenor often send messages when you avail few types of services. For instance: Buying sms,
Internet packages etc. To show a good reaction to your customers. For instance: When you have
minimum balance, send messages by Telenor about your balance. Recognition and appreciation of
the customers helps maintain and reinforce relationships with them. Design or produce something
to meet someone’s individual requirement. For instance: Web self-service which is related to your
personal profile and Djuice friend finder messenger.

3.16.3 Access strategy


Online negotiation with the customers & identify needs and problems. For instance: Websites
Best customers have special number or another channel to gain quick access to the organization.
For instance: Postpaid

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3.16.4 Reward Strategy


Something given in return for or got from work done, good behavior etc. For instance: Free
minutes on maximum calls.

3.16.5 Win Back Strategy


If any customer has stopped using your product then giving them an extra offer including the
product to attract him to come back refers to customer win back. Telenor has launched a push to
target the consumers who have been inactive in the last 3 months or so. Give offers to the customers
like Telenor posted an unconditional Rs.30 worth of balance for those who did not use Telenor
connection for

3.17 CENTRALIZATION AND DECENTRALIZATION

Apart from strategy, all other functions are de-centralized. People at Telenor Pakistan are
motivated to take their responsibilities especially in cross functional projects. Managers in each
department oversee that the employees take up their roles and duties and their performance is
monitored accordingly. If an employee is losing focus from his core job by taking added
responsibilities, he/she is instructed to re-adjust his/her priorities.

3.18 Objective of the Study


The objective of this study relating to customer relationship management (CRM) is to identify the
benefits for any organization. Because this study will provides confidence to organizations to focus
on customer relationship management (CRM), to gain long term benefits by creating long term
and valuable relations with customers. The objective of my study include the following points.
1. To determine the impact of customer advocacy on the organizations performance in the context
of telecom sector of Pakistan.

2. To determine the impact of customer satisfaction on the organizations performance in the


context of telecom sector of Pakistan.

3. To determine the impact of after sale services on the organizations performance in the context
of telecom sector of Pakistan.

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4. To determine the impact of turnover on the organizations performance in the context of telecom
sector of Pakistan.

5. To determine the impact of customer relationship management on the organizations


performance in the context of telecom sector of Pakistan.

3.19 Scope of Study


I check the impact of independent variables on dependent variable and I want to check the impact
of this particular study. I will check how the independent variables Customer satisfaction, after
sale service, Customer advocacy and Turnover are relating to firm’s performance. And how this
study is important for the telecom sector of Pakistan.

3.20 Significance of the study


The CRM (customer relationship management) is an integrated effort to strengthen the network of
relationship for the mutual benefit of both the parties. The biggest management challenge in the
new millennium of liberalization and globalization for a business is to maintain good relationship
with the king (customer). The present study finds out the different factors affecting organizations
performance in the telecom sector of Pakistan. The study also determine the impact of customer
relationship management on organizations performance in the context of telecom sector of
Pakistan.
The current study contributes to the existing knowledge on customer’s relationship management
by maintaining different factors. It means it contributes to the body of knowledge on the
relationship among customer advocacy, customer satisfaction, after sale services, turnover and
organization performance. Since most of the research on this topic was done in the context of
developed countries so this research is an attempt to find such linkage in the developing countries
context like Pakistan. The present study provides help to the managers of the telecom sector to
maintain the factors which involve in maintaining the relationships through satisfying them. It’s
important not to neglect the customers you’ve already won. Your turnover rate will tell you how
bad the problem is. This study wills significant influence on organization performance towards
telecom sector of Pakistan. As compared to trust or habit factors, reputation is the strongest
influence. The results also indicated that customer advocacy, customer satisfaction, after sale

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services, turnover and customer relationship management are significantly related to organizations
performance.
The findings have provided an insight to the telecom providers on the areas to be focused on in
managing the relationship with customers. Lastly, the current study is significant in a way that it
provides the theoretical understanding of the association among customer advocacy, customer
satisfaction, after sale services, turnover and organizations performance in the context of Pakistan
which is a developing country.

3.21 Main research question


What is the impact of CRM on customers and on organizations performance and profitability?

3.22 Hypothesis Development


H1: There is a positive relationship between CRM and firm’s performance.
H2: There is a positive relationship between customer satisfaction and firm’s performance.

H3: There is a positive relationship between after sale service and firm’s performance.

H4: There is a positive relationship between customer advocacy and firm’s Performance.

H5: There is a positive relationship between turnover and firm’s performance.

Rajshekha and Charles L. Martin (2006) Journal of Services Marketing 20/1 12–2013.

Christopher and Simon Journal of Product & Brand Management 15/2 (2006) 121–129.

Josu Takala and Kongkiti Phusavat Industrial Management & Data Systems Vol. 106 No.

Alireza Jalali and Mastura Jaafar World Journal of Entrepreneurship, Management and
SustainableDevelopment Vol. 10 No. 1, 2014

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CHAPTER 2

4. LITERATURE FREVIEW

4.1 LITRATURE REVIEW

The aim of this chapter is to describe the consulted work, research or resources which invoke you
to understand and investigate the research problem. This chapter will cover the definitions of
customer relationship management and profitability consequences associated with different
independent variables such as customer advocacy, after sale services, customer satisfaction and
turnover. All associated key theories and research opinions of different schools of thought will be
identified and argued by variety of authors and interpretations. Customer advocacy, customer
satisfaction, after sale services and turnover are the major factors that have a great impact on the
organizations performance and on profit margin. Different organizations have been applying
different techniques to maintain these factors every day in order to get maximum positive results.
Customer relationship management is one of the most important tool that provide the organizations
lot of opportunities to gain maximum profits and to develop the performance of the organizations
by using it in a meaningful way and purposes. Maintaining and managing the relationships with
existing and potential customers gives organizations the chance to increase the profit margin and
performance and gain the competitive edge. In this day, organizations all around the globe put lots
of efforts to make a strong, sound, effective relationships with customers by using different tools
and policies to strengthen its businesses and protect the organization and reap the customer loyalty
and long run profitability and unique advantage.
Chen and Karen Popovich (2003) shows that Customer relationship management (CRM) is a
combination of people, processes and technology that seeks to understand a company’s customers.
It is an integrated approach to managing relationships by focusing on customer and relationship
development. Companies that successfully implement CRM will reap the rewards in customer
loyalty and long run profitability. Managing a successful CRM implementation requires an
integrated and balanced approach to technology, process, and people. Ryals and Knox (2001)
suggest that the philosophy bases of CRM are a relationship orientation, customer retention and

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superior customer value created through process management. Scott, also in 2001, defined CRM
as “a set of business processes and overall policies designed to capture, retrain and provide service
to customers.” Parvatiyar and Sheth (2001) defined CRM as a “comprehensive strategy and
process of acquiring, retaining and partnering with selective customers to create superior value for
the company and the customers. Raj Shekar and Charles (2006) examine that the world is known
become global village. If you apply customer relationship management (CRM) model then you
can satisfied your customer and retain them world widely. Because these are key terms by which
company can increase profitability. Especially you can loyal your customer and retain him for a
long period of time. Christopher and Simons (2006) focus on customer advocacy. They says that
customer advocacy is so important to create long term relationships with customers. When you
deals with your customer then show him that you are talking on behalf of him not of the company.
This will become loyal your customer and feels value for itself. Buts and Goodstein (1996) they
find if a company do not give value to customers then they will move to another company, only
full bounded customers will came back to you, but in this age alternate of everything is here. Urban
(2004) find customer advocacy strategies can gain the trust of the organization and make relations
to give advantage both to customer and organization. Kumar (2003) says CRM strategies are more
effective in banking and insurance and also for small businesses where customers are deal
individually because customer relationship management CRM also focus on individual’s needs
and want to full fill them and get loyalty. Every person is unique and customization is now accepted
world widely. Now this is important to focus on customers individually. Sink and Tuttle (1989)
gives views on quality management. According to them every organization is working for earning
profits, so you focus on customer and no doubt you must apply CRM model. CRM helps the
organizations to increase the number customers and also the profitability of the firm. Companies
can get benefits for a long time of period. Sinha (2011) said organizations can get more benefits
and profits if they create strong relationships with their customers and suppliers and this possible
only when if company apply CRM model. By this way organization can make long term relations
with customers. Automatically profits of the company will also high. Homeyr and Rice (2000)
said that customer satisfaction is a strong trust on the company. No one can say if customer is
satisfied and he moves to another company. If he is satisfied it means he accept the price, quality,
services and other factors of the company. Liu and Yang (2009) make a study to find how the

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interaction of customer is important for any organization. They says if company wants to make
interaction with their customers for a long period of time then they must apply CRM model. By
focusing on customers, the confidence of customer will boom and he will feels the value, so he
become loyal. Tukel and Ashutosh (2013) examine that consumer life time value should be the
main focus by the organizations by applying customer relationship management (CRM) by this
one you will enjoy life time benefits by increase in profitability from customers. Now how it is
possible, if they apply CRM and focus on their customers. It shows the total satisfaction of
customer and this will also effect on firm’s performance. Don O’sullivan and john (2010) find that
firm’s earnings and value of firm are high, if customer of that firm is satisfied. Customer
satisfaction is a key to make your customer loyal and then get benefits from them. That particular
customer will make your free advertisement and will also increase your number of customers. So
positive and significant relationship is exist between these two. Taegoo Kim and Joahne Jung
(2011) make a research on restaurant in which management of the restaurant gives opportunities
to customers to participate with them and also built long term relations with them. This one make
a positive impact on restaurant performance and customer became loyal. It was all about customer
relationship management CRM by focusing on customer and customer also gives value to them.
Henery Evanschitzky and Arun (2011) says in their study that firm performance is engaged with
their customer satisfaction and customer satisfaction is engaged with role of sales employee. If the
employee implement CRM in a better way than customer will automatically satisfied and firm
performance will also good. From each other by building long term relationships. Ivana Adamson
Donna and et al (2003), conduct a research on Hong Kong small banking sector and they find
clients want to be satisfied and organizations satisfied them for by building relations and give more
value to their customers. Wei-Ming Ou, Chia-Mei Shih and et al (2011), find that, this is not
important for selling more and more goods or services and they are going well. For customer
loyalty it is necessary to provide after sale services to customer. If customer face any problem then
it is important to provide total solution to him. Thus he will be loyal. John Story and Jeff Hess
(2010) work on customer behavior. They find that it change with the passage of time it also change
the needs and wants of the customer. Relationship with customer is only one key now to understand
the needs of the customer and find, what the customer actually want. Rene Trasorras and Russell
Abratt (2009) customer relations are based on services provided to him or her. Customer

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relationship management CRM enforce an organization to provide value to customer and that value
will make the services good so relations will strong more. In 2008 Andre’s kuuisik and Urmas
tried to find the factors to check out why the customer leave the organizations and move to another.
The factors were same as other studies like customer satisfaction, customer advocacy, after sale
services. These were not exist so customer move to other company for these factors. Robert Gee
And Mike (2008) make a study and they says, it is so important for any organization to manage
the profitable customer to keep them with the company for long time of period. These long term
relations will be considered as asset because of influence on profitability of the company. (2004)
Yonggui and Hing examine that company can achieve their goals if it focus on their target
customers. Company satisfying customer’s needs so customers are satisfied with them. This so
important to get target of sales and profits with customer satisfaction. According to Erika Egonsson
et al, (2013) Due to growing complexities in businesses, the relationship between a company and
a customer never ends after the purchase services. Customers expecting bundle of values that come
with the product which will satisfy them. Thus, integrating services into the core offerings in
service industries has taken crucial importance. Especially, after-sales service is considered a tool
for enhancing a valuable advantage for the customer as well as it is a business opportunity for the
company. After-sales services have proven to be of importance, and a strategic after-sales
framework is necessary. Although the organizations do not state formal goals for providing after-
sales service to its customers, they are aware of its importance and aim for satisfying customer
demands. All organizations are convinced that if after-sales services are not handled properly, they
face the risk of losing the customer. According to Ogunnaike Olaleke et al, (2006) Customer
relationship management suffers when it is poorly understood, improperly applied, and incorrectly
measured and managed. The study shows that the capabilities and strategic emphasis we build a
more managerially relevant theory of CRM performance that shows success. Jeremy Galbreath
and Tom Rogers (1999) define Organizations motivate the customers get the loyalty. Company
focus on customer to satisfy needs and wants and built long term relations with them. CRM
improve the performance of the company maximize the profits of the company as well. According
to Atul Parvatiyar & Jagdish N. Sheth (2002) in this paper, the authors explore Building
relationships with customers is a fundamental business of every enterprise, and it requires a
strategy and process to make it successful and make the organizations profit oriented. Mabert and

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et al (1992) examine that relationship between profitability and customer capital can never be
forget. This will also give the advantage to company on their competitors. Your customer will
satisfy and not move to your competitors. Muhammad and Rashid (2012) conduct a study on CRM
and said this can provide extra benefits to the organizations if the implement customer relationship
management CRM. This model will increase the profitability and performance of the organization.
This model influence to focus and to manage profitable customers. Narver and Slater (1990)
conduct their study and say there is a positive relation between business performance and customer
capital. Organization will produce and customer will pay for them to use and satisfy their need and
want. Customer relationship management (CRM) can make this relationship more strong by
providing value to customer and customer will never move here and there to other firms. According
to David Midgley et al, (2009) shows that customer relationship management and firm’s
performance have positive relationship with each other. It shown that when we use CRM approach,
it emphasize customer intimacy, cost reduction. According to Benjamin Appiah February, (2010)
as the world economy becomes globalized, competition has intensified and the differences in
products have faded. Today, the strategic importance of CRM has become an essential capability
to enable firms respond efficiently to customer needs in a highly competitive and volatile market
in any industry. Consequently, businesses have become fixated on customer relationship
management (CRM) as it has become a central orienting point in business environment with
organizations increasingly focusing on managing customer relationships as a strategic capability
to achieve market leadership and profits. According to Martin Riemann et al (2010) as managers
and academics increasingly raise issues about the real value of CRM, the authors question its direct
and unconditional performance effect. The study analyzes data from in-depth field interviews and
a large-scale, cross-industry survey, and results reveal that CRM does not affect firm performance
directly. Rather, the CRM-performance link is fully mediated by differentiation and cost
leadership. In addition, CRM’s impact on differentiation is greater when industry commoditization
is high. According to Dr. T.Velnampy & S.Sivesan (2012) in the present era, customer relationship
management plays a vital role. The major goals of customer relationship management can be
expressed simply as understanding and treating customers better for increased loyalty and profit.
Main findings of the study are examining the relationship between customer relationship

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management and customer satisfaction and they have a positive impact on each other and on profit
margins of the organizations.
Karaskostas et al, believes that business institutions are facing strong competition not only from
existing players but also new other entrants from other sectors and indicated that CRM holds the
promise to achieve corporate objectives in a highly competitive arena. A successful CRM therefore
requires a combination of managerial commitment, cultural change and a combination of resource
and technology, after sale services, customer advocacy, customer satisfaction and turnover to
achieve the needed results. CRM only becomes a failure when it is conceptualized as technological
tool and software solution only. Organizations must understand the concept as not only a set of
technological attributes but a combination of other factors in order to produce maximum positive
results. Carmen camarero (2007) suggests that, company’s make strategies according to
relationship oriented not profit oriented. In case of profit you may sale to customer for one time
and he move to another company for next one. But in other case relations will built with customer
and company enjoy consumer life time benefits by these strong relations. Yurong Xu, David and
et al (2002), work on customer relationship management CRM and says in war of market capturing
CRM can provide total solution and can play main role to make strategies while customers
capturing and retaining them to get benefits for a long period of time. Wikstran says (1996), if you
focus on your customer then you will get the opportunity to go close to your customer and make
segments of them to target them and get their satisfaction to gain long term benefits from them.
Organizations do this work to make loyal the customer with the organization. Berry (1995), find
that customer relationship management CRM is a good and useful model for both the company as
well as customer. Both can enjoy the long term benefits.

Andres Kuusik and Urmas Varblane Baltic Journal of Management Vol. 4 No. 1, 2009 pp.
66,79.

Robert Gee, Graham Coates and Mike Nicholson Marketing Intelligence & Planning Vol. 26
No. 4, 2008 pp. 359-374

Carmen Camarero The International Journal of Bank Marketing Vol. 25 No. 6, 2007 pp. 406-
426

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Chapter 3

MODEL OF THE STUDY.

 Quality With product


 Value of product relative to
Price
 Emotional Consistency
 Customer-journey consistency
 Communicative consistency
 Continuity with Product
 Choice of Customer
 Control of Product Flow
 Technical
Support/Help desk
 Feedback Service
 Automated Service
 Supporting
Automation
 Reliable Relation after
sale Customer
 Warranty/guarantee satisfaction
Maintenance +ve

After sale
service’s +ve

Organizations -ve Shutdown of


Customer +ve Performance Organization
(+ve)
advocacy

 Social Networking
+ve
 Trust
 Loyalty Judgment & Turnover
 Knowledge
 Straight Forward and
Honest
 Interpersonal
Management
 Time Management Higher Conversation Rates
 Project Management
Longer Relationships
Suggestion Selling
Referrals

These variables have positive relation with Organizations Performance.

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4.2 Customer Advocacy

Customer advocacy is a specialized form of customer service in which companies focus on what
is best for the customer. It is a change in a company's culture that is supported by customer-focused
customer service and marketing techniques. A customer advocacy policy encompasses all aspects
of customer contact, including products, services, sales and complaints. However, there are times
when, if a customer is happy with you, they will pay more for the service as per talent fee.

4.2.1 Customer Advocates.


Customer advocates are facilitators between customers and the company. They are trained in
cross-functional roles and empowered to provide customers with assistance in all areas of the
business.

4.2.2 Types of Customer Advocates


A. Active Advocates
B. Passive advocates
C. Conditional advocates

4.2.3 Active Advocates

This is the group marketers conjure up most often when they discuss advocacy. They are constantly
verbal and always recommending the next best thing. They are passionate and loud, just the way
we want them! They will respond to inquiries about your brand not just to the person who asked,
but to as public a group as they can get. Brands will lavish attention on them and they’ll share that
praise, which will earn them even more attention.

4.2.4 Passive Advocates

This group might love your brand. They will respond to inquiries on social media from trusted
circles, and they will patiently wait for updates and improvements. They trust the brand, they
recommend the brand, but they are often ignored by the brand. They aren’t “loud” enough to be
seen as advocates, and yet they are more likely recommending the brand simply because they love
it. They aren’t necessarily interested in perks, but they wouldn’t mind receiving them.

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4.2.5 Conditional Advocates

This group likes your brand by default. They are often experts in their fields and those who others
turn to for recommendations. They might recommend the brand but they do so conditionally. If a
competitor came along and offered more or better, this advocate would be quick to jump ship and
sing their praises. They often tell people about their love/hate (or sometimes just hate) relationship,
and why they “put up” with the brand.

4.3 After sale service


Services and Benefits provided after a customer has paid for and received a product or service. So
when a customer purchase certain product or service every company offer some sort of benefits
and guidelines to make their product more customer oriented this is known as after sales service.

4.4 Customer satisfaction


Customer satisfaction is defined as the number of customers, percentage of total customers, whose
reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction
goals. It is a measure of how products and services supplied by a company meet or surpass
customer expectation.

4.5 Turnover.
The annual sales volume net of all discounts and sales taxes. Turnover shows the value of net
earned amount’s after deducting all taxes and expenses, expenses could be marketing and
administrative.

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CHAPTER No. 4

5. DATA COLLECTION & METHODOLOGY

5.1 Introduction
This chapter examines the self-reporting questionnaire used to collect field data. It encompasses
three parts; the first part deals with the construction of the questionnaire while the second part
describes the preparation of the population and sampling design for this study. Finally, the third
part relates to the statistical techniques applied to achieve the objectives of current research,
utilizing the soft-ware packages named the ‘Statistical Packages for Social Sciences’ (SPSS).

5.2 The questionnaire construction process


The personally-administered questionnaire survey is one of the commonly used data collection
techniques. Brayman and Bell suggested this type of questionnaire survey is much more productive
than postal or e-mail surveys because the respondents feel more comfortable in responding and
any doubts or concerns about the survey questionnaire can easily be clarified due to the personal
interaction. Sekaran and Bougie added that the personally-administered questionnaire establishes
rapport and motivates the respondents as it is inexpensive (when respondents are sitting in a group).
It also ensures both the anonymity of the respondents and response rates.

5.3 Introduction of the overall questionnaire


It is necessary to develop a robust selection criterion to decide on the inclusion of an item in a
questionnaire. The first criterion is that the questions in the questionnaire should constantly
measure the same concept and it should have an acceptable inter questions consistency. Criterion
suggests that the questions included in a specific questionnaire should correlate with each other,
while the fourth criterion ensures that the questions for the questionnaires depend on a strong
theoretical and conceptual foundation. Finally, the fifth criterion is that there will be at least three
questions in a questionnaire. Regarding the overall composition of the questionnaire, it comprises
4 dimensions containing 20 questions comprising and explaining the each of the variables. The
first dimension contains 3 questions to measure the after sales services. Dimension two contains 4

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questions which measures the customer satisfaction. Dimension three contain 4 questions which
measures the importance of customer advocacy for with CRM perspective, the last dimension
contain four measures the importance of turnover for organizations performance and profitability.
For scoring purposes, a five point Likert scale was adopted; where point ‘1’ represents strongly
disagree and point ‘5’ indicates strongly agree. In Likert scale, the responses are easily quantifiable
and allow the respondents to respond in a degree of agreement. It also accommodates the
respondents to go with the option of neutral and a single number represents the response of the
participants. Moreover, it is a quick, efficient and inexpensive method of collecting the field data.

5.4 Research Paradigm


The first paradigm is Positivism which is a quantitative research approach in which assumptions
are made on existing theory to verify that theory. In positivism the numeric data is collected
through questionnaire survey. The collected data was then analyzed by using SPSS. Second
paradigm is Interpretivism which is a qualitative research approach in which assumptions are made
by the researchers which will then generalize through the opinions of the people. In Interpretivism
data is collected by asking close ended questions from the respondents. The collected data is in the
form of words and images. So in Interpretivism a theory is generated. Pragmatism is a research
approach in which the mixture of both positivism and Interpretivism are used. The present study
uses the positivism research approach. The reason for selecting the positivism research approach
is that the present study is based on the previous researches and this study verifies the theory of
previous researches i.e. factors affecting turnover and organization performance. Another reason
is that present study used the survey questionnaire technique to collect the data and SPSS to
analyze the data.

5.5 Dependent & Independent variable


In order to find data on impact of factors affecting organizations performance and profitability in
Punjab Pakistan the data is collected on the variables which are aftersales services, customer
satisfaction, customer advocacy and turnover. Aftersales services, customer satisfaction, customer
advocacy and turnover are independent variables whereas dependent variables is organization
performance and profitability. Questionnaire survey technique is used in this study to collect the
data on variables of the study. The main reason of selecting the survey questionnaire technique

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that data can be collected easily through five Likert scale questions and this technique is very
useful and widely used in social sciences. A survey describes a population by providing “a
quantitative or numeric description of some portion of the population the sample, through the data
collection procedure of asking questions of people. This facilitates a researcher to simplify the
findings from a sample of responses to a population.” In addition, questionnaire survey data can
provide useful statistics to the researcher, which can be used to describe how things are and why
the phenomena occur.

5.6 Pilot Study


A pilot study is one of the techniques applied to test a questionnaire. To enhance the argument,
Converse & Presser suggested that it is better to carry out the pilot study before moving to final
data collection. In this way, critical feedback may be received from colleagues, experts and
especially the chosen respondents. After the literature review and discussion with colleagues, an
adapted questionnaire was primarily designed. At the second stage it was modified under the
opinions of both supervisors to improve the sentence structure, wording and order of the overall
questionnaire. Finally, a pilot study was conducted with sample respondents to further refine the
questionnaire. The respondents of the pilot testing were not considered in the final sample so that
the authentication of the simple random sampling design would not be affected. The final sample
was based upon a simple random sampling design of the total studied population. The pilot study
was conducted at the university and in the organization where researcher is working on an
accountant post.

The Customer Relationship Management Process: Its Measurement and Impact on Performance”.
Journal of Marketing Research, 293-305.Richard, V.A et al. (2009).
Measuring Organizational Performance: Towards Methodological Best Practice. Journal of
Management Romano, Nicholas C. (2003).
Electronic Commerce Customer Relationship Management: A research agenda, Information
technology and management, 4(2-3), pp 233-258.Schneider, H. and Bower, U (1995).

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5.7 Population and Sample


5.7.1 Population
The data was collected from the different population groups of the selected organization. The
population of the study is based upon the people which are from the different age groups.

Category Frequency Percentage

18-23 11 27.5

24-34 19 47.5

35-onward 10 25.0

Total 40 100.00

5.7.2 Sample size


The data of the study is collected by using self-administered questionnaires from the 40 Staff
members of the selected organization which was Telenor Pakistan.

Male/Female
Frequency Percent Valid Percent Cumulative Percent
male 26 65.0 65.0 65.0
Valid Female 14 35.0 35.0 100.0
Total 40 100.0 100.0

5.8 Sampling Technique

5.8.1 After sales services


The variable after sale services was measured by asking 3 questions from participants by using 5
point Likert scale ranging from 1 for strongly disagree to 5 for strongly agree.

5.8.2 Customer advocacy


The variable customer advocacy was measured by asking 4 questions from participants by using
5 point Likert scale ranging from 1 for strongly disagree to 5 for strongly agree.

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5.8.3 Customer Satisfaction


The variable customer satisfaction was measured by asking 4 questions from participants by using
5 point Likert scale ranging from 1 for strongly disagree to 5 for strongly agree.

5.8.4 Turnover
The variable turnover was measured by asking 4 questions from participants by using 5 point
Likert scale ranging from 1 for strongly disagree to 5 for strongly agree.

5.8.5 Organizations performance and Profitability


The variable organizations performance and profitability was measured by asking 5 questions from
participants by using 5 point Likert scale ranging from 1 for strongly disagree to 5 for strongly
agree.

5.9 Methodology

The data of the study was analyzed by using SPSS 20.0 (64bit) software. In this research, we used
descriptive and Quantitative analysis of the data. The inferential statistics is defined as; inferential
statistics are for generalizing your findings to a broader population group. Descriptive statistics
comprises the kind of analysis we use when we want to describe the population we are studying,
and when we have a population that is small enough to permit our including every case.

5.10 Procedure of Data Collection

The data collection procedure is one of the most important requirements of research methodology.
Firstly, written approval to visit the selected organization taken with the reference to University of
South Asia Gujranwala campus. Then a Telephonic meeting time has been taken from the selected
organization, this helps the respondents and researcher to meet at time and arrange their time for
researcher. This study was conducted from April to august 2015 and the respondents were also
assured that all the acquired information would be treated as confidential, and retained purely for
the purposes of the study. Furthermore, it was confirmed to the respondents that anonymity would
be assured and maintained. They were also re-assured that there was no need for personal

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identification (names, telephone numbers or e-mail addresses). Approximately 11 staff member


wished to complete the questionnaire separately and returned them when they have time.

CHAPTER 5

6. DATA ANALYSIS AND FINDINGS

Table: Demographic summary of survey participants

6.1 Based on Genders


Male/Female
Frequency Percent Valid Percent Cumulative Percent

male 26 65.0 65.0 65.0


Valid Female 14 35.0 35.0 100.0
Total 40 100.0 100.0

The survey has been conducted on the 40 random samples of selected populations in which
describe the respondents on the basis of their gender. The frequency of male respondents are 26
whereas the frequency of female respondents are 14. The valid percentage of male respondents out
of 40 is 65%, whereas the valid percentage of female respondents out of 40 is 35%.

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Figure 1.

The above mentioned bar-chart shows the percentage of male and female respondents who take
part in the research study questionnaire. The percentage of male respondents according to bar chart
is 65% and the percentage of female respondents is 35%.

6.2 Based on Age


Category Frequency Percentage
18-23 11 27.5
24-34 19 47.5
35-onward 10 25.0
Total 40 100.00

This table showing the male and female respondents on the basis of their age group. Survey has
been conducted very carefully in order to get response from all level of age groups. The number
of respondents between the age group of 18-23 is 11 and the valid percentage of this age group is
27.5%. The number of respondents between the age group of 24-34 is 19 and the valid percentage
of this age group is 47.5%. While the rest of category between the age group of 35-onward is 10
and the valid percentage of this age group is 25.0%.

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Independent Variable1. Customer Satisfaction


1- Do your prefer customer satisfaction?
Frequency Percent Valid Percent Cumulative Percent
Neutral 1 2.5 2.5 2.5
Agree 20 50.0 50.0 52.5
Valid Strongly Agree 19 47.5 47.5 100.0
Total 40 100.0 100.0

On the 1st study question, the response of 40 respondents recorded. The 20 respondents are agree
that they prefer customer satisfaction and valid %age of this response is 50. The 19 respondents
are those who are strongly agree with the question that they also prefer customer Satisfaction for
their business and thus this responses have 47.5%. On the basis of above responses, I can say that
customer satisfaction is necessary for organization.

Figure: 2
Customer satisfaction considered to be very important when we talk about the Organizations
performance and profitability. This question of study also explaining the importance of customer
satisfaction. The above diagram also explains that the persons who are positively strongly agree
are 47.5%. They prefer customer satisfaction for organization performance and profitability. 50%
are those respondents who are also positively agree to prefer customer satisfaction. Only the 2.5%
respondent says they are undecided to this decision.

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2- Do you know your customer preferences


Frequency Percent Valid Percent Cumulative Percent
Agree 19 47.5 47.5 47.5
Strongly Agree 21 52.5 52.5 100.0
Valid
Total 40 100.0 100.0

On the 2nd study question, the response of 40 respondents recorded. The 19 respondents are agree
that they know their customer preferences and valid %age of this response is 47.5%. The 21
respondents are those who are strongly agree with the question that they know their customer
preferences for their business success and thus this responses have 52.5%. On the basis of above
results I can say that organization study their customer preferences for their business performance
and profitability.

Figure:3 3
Customer preference considered to be very useful when we talk about the Organizations
performance and profitability. This question of study tells about the necessity to know our
customer preferences also explaining the importance of customer preference in organization. The
above diagram also explains that the persons who are positively strongly agree are 52.5%. They
prefer customer preference in order to manage the relationship with customers and for their
organization performance and profitability. 47.5% are those respondents who are also positively
agree to prefer customer preference.

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3- CRM help to build customer satisfaction


Frequency Percent Valid Percent Cumulative Percent

Agree 12 30.0 30.0 30.0


Strongly Agree 28 70.0 70.0 100.0
Valid
Total 40 100.0 100.0

On the 3rd study question, the response of 40 respondents recorded. The 12 respondents are agree
that customer relationship management is very helpful in order to build the customer satisfaction
level and valid percentage of this response is 30%. The 28 respondents are those who are strongly
agree with the question and thus this responses have 70%. On the basis of above results I can say
that CRM play an important role in building the customer satisfaction and thus this have a positive
impact on their business performance and profitability.

Figure: 4
Customer relationship management considered to be very helpful for building customers
satisfaction when we talk about the Organizations performance and profitability. This question of
study tells about the importance of customer relationship management relating to customer
satisfaction in organization. The above diagram also explains that the persons who are positively
strongly agree are 70%. 30% are those respondents who are also positively agree that CRM help
to build the customer satisfaction level.

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4. Does Telenor Pakistan consider CRM helped to build a strong customer relation and
enhances performance
Frequency Percent Valid Percent Cumulative Percent
Agree 7 17.5 17.5 17.5
Strongly Agree 33 82.5 82.5 100.0
Valid
Total 40 100.0 100.0

On the 4th study question, the response of 40 respondents were recorded. The 7 respondents are
agree that customer relationship management is very helpful in order to build the customer relation
and enhances the performance of the organization and valid percentage of this response is 17.5%.
The 33 respondents are those who are strongly agree with the question and thus this responses
have 82.5%.

Figure: 5

The above diagram explains that the persons who are positively strongly agree are 82.5% and
consider the CRM helped to build the customer relation and enhances the performance of the
organization. 17.5% are those respondents who are also agree with this scenario.

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Independent Variable 2. After sale services

1- Do you consider necessary after sale services


Frequency Percent Valid Percent Cumulative Percent

Agree 9 22.5 22.5 22.5

Valid Strongly Agree 31 77.5 77.5 100.0

Total 40 100.0 100.0

On the 4th study question, the response of 40 respondents was recorded. The 9 respondents are
agreed upon that in today’s world, after sale services are very astonishing to gain competitive
advantage and these are attributed with customer relationship management and valid percentage
of this response is 22.5%. The 31 respondents are those who are strongly agree with the question
and thus this responses have 77.5%.

Figure: 6

The above diagram explains that the persons who are strongly agree are 82.5% and consider the
CRM helped to build the customer relation and enhances the performance of the organization.
17.5% are those respondents who are also agree with this scenario.

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2. Does Telenor Pakistan have strong focus on after sale service


Frequency Percent Valid Percent Cumulative Percent
Agree 8 20.0 20.0 20.0
Valid Strongly Agree 32 80.0 80.0 100.0
Total 40 100.0 100.0

On the 5th study question, the response of 40 respondents was recorded. The 8 respondents are
agreed upon that in today’s world, after sale services are very astonishing to gain competitive
advantage and these are attributed with customer relationship management. That’s why, Telenor
Pakistan have strong focus on their after sale services thus the valid percentage of this response is
20%. The 32 respondents are those who are strongly agree with the question and thus this responses
have 80%. On the above results, I can concluded that Telenor put strong efforts on their after sale
services in order to increase their performance and profitability margin.

Figure: 7

The above diagram explains that the persons who are strongly agree with this scenario are 80%
and consider the Telenor Pakistan have strong focus on their after sale services in order the increase
the performance of the organization. 20% are those respondents who are also agree with this
scenario.

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2- Does you believe after sale services are unique for organization
Performance and profitability.

Frequency Percent Valid Percent Cumulative Percent

Agree 6 15.0 15.0 15.0

Valid Strongly Agree 34 85.0 85.0 100.0

Total 40 100.0 100.0

On the 6th study question, the response of 40 respondents was recorded. The 6 respondents are
agreed upon that after sale services are very unique for organization performance and profitability
and these are attributed with customer relationship management and the valid percentage of this
response is 15%. The 34 respondents are those who are strongly agree with the question and thus
this responses have 85%. On the above results, I can concluded that after sale services are very
unique for the performance betterment and for increasing the profitability margin in organization.

Figure: 8

The above diagram explains that the persons who are strongly agree with this scenario are 85%
and consider that after sale services are unique in order the increase the performance and
profitability of the organization. 15% are those respondents who are also agree with this scenario.

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1. Customer Satisfaction/Focus

1- Many business don’t consider customer focus necessary for success?


Do you consider it right
Frequency Percent Valid Percent Cumulative Percent
Strongly Disagree 20 50.0 50.0 50.0
Disagree 16 40.0 40.0 90.0
Agree 1 2.5 2.5 92.5
Valid
Strongly Agree 3 7.5 7.5 100.0
Total 40 100.0 100.0

The above result of the given table shows that, those business who don’t consider customers focus
necessary is they doing right or not. The respondents discourage to those businesses who don’t
focus on customers desires. The respondents who are disagree and strongly disagree are 16 and 20
in the row. Strongly agree and agree respondents are only 3 and 1 respectively which recorded
their response in favor of encouragement of these businesses, which are so less to neglect this
statement.

Figure: 9

The above mentioned diagram Showing that the persons who are strongly disagree and disagree
with the condition are 50% and 45% respectively they believe that customer focus business is
necessary and discourage those business who don’t focus on customers. The respondent who
recorded their response in the favor of business are 2.55% agree and 7.5% strongly agree

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2- Customer focus business gain rapid success as compare to non-customer focus business
Frequency Percent Valid Percent Cumulative Percent
Agree 7 17.5 17.5 17.5

Valid Strongly Agree 33 82.5 82.5 100.0

Total 40 100.0 100.0

From the above mentioned question and table researcher want to see that either customer focus
business are gain more turnover and stabilize their performance or not. The results were very
encouraging for the researcher as the respondents who are agree and strongly are 7% and 33%.and
believe customer focus business are more profitable and performance oriented there is no one
single respondent who disagree with this statement. Hence the valid percentage for agree
respondents with researcher thoughts are 17.5% and strongly agree respondents are 82.5%.

Figure: 10

From the above mentioned question bar chat data it is clear that business are gain more turnover
and stabilize their performance if they focus on customers and prefer customer preferences. The
results were very encouraging for the researcher as the respondents who are agree and strongly are
82.5% and 17.5% .and believe customer focus business are more profitable and performance
oriented there. These results were very helpful for researcher as they meet with researcher positive
thought customer focus is necessary for business.

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2. Telenor Pakistan believe in customer focuses, and treat customers as boss


Frequency Percent Valid Percent Cumulative Percent
Neutral 6 15.0 15.0 15.0
Agree 18 45.0 45.0 60.0
Valid
Strongly Agree 16 40.0 40.0 100.0
Total 40 100.0 100.0

This table illustrate and clear the view of the selected organization for the researcher that how
organization consider necessary customers and how they want to treat customers. The result is
very positive from researcher’s point of view, that respondents says they treat customers as boss
and agreed and strongly frequency is 18 and 16 out of 40. Neutral response for this question is 6.
The valid percentages are 15, 45, and 40 for neutral, agree, and strongly agree respectively.

Figure: 11

The bar chat also explaining the percentage of the positive responses that either selected
organization treat customers as boss or not. The response was in the favor of customers. As 40%
of the respondent strongly agree and 45% respondent are agree that they consider customer as
boss. Whereas only 15% respondents are undecided about this scenario. The bar chat also reveal
the important of customers for the organization. They follow the CRM rule to treat customers as
boss and always research for their changing preferences.

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3- Telenor Pakistan believe customers are customers not boss and don’t follow customer
preferences
Frequency Percent Valid Percent Cumulative Percent
Strongly Disagree 19 47.5 47.5 47.5
Disagree 15 37.5 37.5 85.0
Neutral 1 2.5 2.5 87.5
Valid
Agree 3 7.5 7.5 95.0
Strongly Agree 2 5.0 5.0 100.0
Total 40 100.0 100.0

In this table researcher want to demonstrate the respondent’s behavior with a negative questions
either they respond in the discouragement of the question asked. The number of respondents who
are disagree and strongly disagree were 15 and 19 respectively who consider wrong that
Organization don’t consider customer as boss. Only 1 respondent was neutral and agree
respondents were 3 and strongly agree were 2. But higher response rate was in the favor of selected
organization which nullify the statement that organization don’t consider customer as boss.

Figure: 12

This bar chat explain us that the selected organization consider customers as boss. This can be
straightly describe from the bar chart percentages that 47.5% and 37.5% responses are in the favor
of organization considered as strongly disagree and disagree. The neutral respondents are 2.5. The
respondents who are against the organization with the above question are just 7.5% agree and 5%
strongly agree. The responses calculated for this question also help researcher to understand the
CRM structure and policies of organization established for customers.

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5. Do you believe success of Telenor Pakistan is due to customer focus business


Frequency Percent Valid Percent Cumulative Percent
Agree 17 42.5 42.5 42.5
Valid Strongly Agree 23 57.5 57.5 100.0
Total 40 100.0 100.0

From the above mentioned question and table the results were very encouraging for the researcher
as the respondents who are agree and strongly agree are 17 and 23, and believe the success of
Telenor Pakistan is due to customer focus business are more profitable and performance oriented.
There is no one single respondent who disagree with this statement. Hence the valid percentage
for agree respondents with researcher thoughts are 42.5% and strongly agree respondents are
57.5%.

Figure: 13

From the above mentioned bar chart it is clear that business are gain more turnover and stabilize
their performance if they focus on customers. The results were very encouraging for the researcher
as the respondents who are agree and strongly are 57.5% and 42.5% and believe customer focus
business are more profitable and performance oriented there. These results were very helpful for
researcher as the success of Telenor Pakistan is just because of show attention to Customer focus
business.

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3- Independent Variable: Customer Advocacy


1- Customer advocates are mainly important for any business, so Telenor Pakistan manage their
customers through them.

Frequency Percent Valid Percent Cumulative Percent


Neutral 5 12.5 12.5 12.5
Agree 24 60.0 60.0 72.5
Valid
Strongly Agree 11 27.5 27.5 100.0
Total 40 100.0 100.0

The above table showing the importance of the customer advocates for the selected organization
which is used to describe the overall population. The response has been recorded for the customer’s
advocates as they are important for the organization. The results was very positive and in favor of
customers advocates as 27.5% respondents are strongly agree and agree respondents are 60%
which response shows that customers advocates are important for organizations performance and
profitability. Only 12.5% respondents are those who have neutral opinion in this scenario.

Figure: 14

The above diagram shows that the higher percentage of respondents are agree which is 60% and
strongly agree respondents are 27.5% which supports that customers advocates are important for
any business. This evidence is enough to supports the hypothesis that customers advocates are
persons who directly and indirectly playing role for business organization success. And
intermediaries between organization and customers.

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2- For customer focus business customer advocates are necessary


Frequency Percent Valid Percent Cumulative Percent
Agree 12 30.0 30.0 30.0
Strongly Agree 28 70.0 70.0 100.0
Valid
Total 40 100.0 100.0

This tables response is recorded with a view to gain the thoughts of respondents that did they
analyze that customer’s advocates are influential to run a customer oriented business. For this
Agree respondents are 12 and strongly agree respondents are 28 which believe that customer’s
advocates are really influential to run customer focus business.

Figure: 15

The aim of this bar chart is to show the strongly agree and agree respondents in a way which is
easy to understand for the reader. The strongly agree respondents are 70% and agree respondents
are 30% which demonstrate then prime role of customers advocates to establish a customer
concentrated business.

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3- Does customer advocacy makes Telenor Pakistan customer loyal

Frequency Percent Valid Percent Cumulative Percent

Agree 17 42.5 42.5 42.5


Strongly
Valid 23 57.5 57.5 100.0
Agree

Total 40 100.0 100.0

The question asked by researcher with a view to gain responses that selected organization feel that
customers are becoming loyal due to customer’s advocates or not. The results of the given table
in which strongly agree respondents are 23 and agree respondents are 17 which is a solid evidence
that respondents feel customers are becoming more loyal due to the field advocates.

Figure: 16

The figure shows that the percentage of strongly agree respondents are 57.5% and agree
respondents are 42.5%. The aim of the above bar chart is to explain the percentage of respondents
in way to show that how many respondents agree feel that customer’s advocates are necessary to
make customer loyal.

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4. Telenor Pakistan consider customer advocates playing a successful role for


organizations performance

Frequency Percent Valid Percent Cumulative Percent


Neutral 3 7.5 7.5 7.5
agree 14 35.0 35.0 42.5
Valid
Strongly Agree 23 57.5 57.5 100.0
Total 40 100.0 100.0

The table Responses showing the importance of the customer advocates for the selected
organization which is used to describe the overall population. The response has been recorded for
the customers advocates as did they play a successful role for the organization. The results was
very positive and in favor of customers advocates as 23 respondents are strongly agree and agree
respondents are 14 which response shows that customers advocates are playing a successful role
for organizations performance and profitability hence supports CRM Structure of Businesses.

Figure: 17
The above diagram shows that the higher percentage of respondents are strongly agree which is
57.5% and agree respondents are 35%, which supports that customers advocates are important for
organizations. This evidence is enough to supports the hypothesis that customers advocates are
persons who directly and indirectly playing role for business organization success. And
intermediaries between organization and customers.

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Independent Variable : 4 Turnover

1- CRM structure of Telenor Pakistan considerably strong but not enough to satisfy customers

and produce profits to put in org performance

Frequency Percent Valid Percent Cumulative Percent

Strongly Disagree 21 52.5 52.5 52.5

Disagree 13 32.5 32.5 85.0

Valid Neutral 4 10.0 10.0 95.0

Agree 2 5.0 5.0 100.0

Total 40 100.0 100.0

This was a reverse question asked by the researcher in order to gain more clear sights of the
respondents either they are truly satisfied about the CRM structure of the selected organization or
not because it was necessary due to a random sample have impact on all population sample. The
results were clears that CRM structure is strong. In this response that CRM structure of selected
organization is weak the strongly disagree respondents were 21 where are disagree respondents
were 13. Which are about the 85% of the whole respondents and enough to nullify the researcher
revers question. The researcher has concluded that CRM structure of the selected organization is
strong and playing its role effectively.

Figure: 19

The above chart is displaying the percentage of the respondents for the question asked. The
strongly disagree respondents percentage is 52.5 whereas the percentage of disagree respondents
with the researchers question were 32.5%. The number of respondents who were undecided were

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10%. And agree respondents as we can see form bar chart were only 5%. This put a good sight to
researcher that CRM structure of selected organization is well and good and acting perfectly
according to organizations desire.

2- A Well-Managed CRM structure Contribute in More Profits of Business.

Frequency Percent Valid Percent Cumulative Percent

Agree 13 32.5 32.5 32.5

Strongly
Valid 27 67.5 67.5 100.0
Agree

Total 40 100.0 100.0

On the above mentioned data the 13 respondents are agreed upon that a well-managed CRM
structure increase the profits of the business and the valid percentage of this response is 32.5%.
The 27 respondents are those who are strongly agree with the question and thus this responses
have 67.5%. On the above results, I can concluded that the selected organization have a strong
CRM structure which contribute in increasing the profitability margin of the organization.

Figure: 20
The above mentioned diagram explains that the persons who are strongly agree with this scenario
are 67.5% and consider that a well-managed CRM structure have a positive impact in order the
increase the performance and profitability of the organization. 32.5% are those respondents who
are less agree with this scenario but overall results are positive.

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4-Telenor Pakistan mainly focus on CRM to gain more profits/turnover

Frequency Percent Valid Percent Cumulative Percent

Neutral 1 2.5 2.5 2.5

Agree 14 35.0 35.0 37.5


Valid
Strongly Agree 25 62.5 62.5 100.0

Total 40 100.0 100.0

The main Purpose of this Question is to gain the responses if the selected organization did they
believe and focus on CRM structures to gain more profits. The answers, agree 14 and strongly
agree 25 was very helpful for researcher because they were encouraging the CRM as a performance
optimizer and trust that CRM structures must be followed for more Turnover. The researcher also
conclude that CRM implementation play vital role for all type of organization to gain more success
and turnovers and they gain more opportunities to expand business.

Figure: 21

The Bar chart diagram also explain the responses in way that strongly agree respondents
percentage is 62.5% and agree respondents percentage is 35%, in a nut shell these responses are

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in the favor of utilizing the CRM capabilities to enhance the profit margins for performance
optimizations.

CHAPTER 6

7. CONCLUSION RECOMMENDATIONS LIMITATIONS &


FUTURE DIRECTIONS
7.1 Conclusion

This study has sought to evidence the factors contributing to Organizations performance and
profitability in higher level and mid-level organizations. Telenor Pakistan contribute a lot in the
researcher findings to prove the hypothesis results. These factors also contribute a lot in
understanding the customer relationship management (CRM).

This Chapter reviews the key findings of the study; it reports the conclusion with the reference of
the consequences of organizations performance and profitability among the organizations of the
Pakistan. The customer relationship management offer a strong helpful role when we talk about
Organizations performance and profitability. In today’s modern era, business industries are
growing rapidly and a competitive environment is created, so there is a need to find that that how
organizations and small business get them successful. The researcher thought is to find the answer
of this question. For this purpose hypothesis were created in order to find the relationship between
CRM and Organizations performance. Researcher included many hypothesis which can directly
or indirectly effect the organizations performance: or by which a business can boost his
performance. These hypothesis play a significant role to find the answer which is quite simple but
need tactics to follow.

It is discovered with the help of previous Studies that customer focus business gets more success
and Profits. So, the aim of the study lies between four Angles which are pivot for this study. The
pivot of this studiers are Customer advocacy, after sale Services, customer satisfaction, Turnover.
Respectively, first three of them are concerned with CRM whereas the fourth one is concerned

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with the effect of the other three. This shows how effectively they perform the role for business
turnover when organizations follow them in the field of CRM.

Up to now, relatively few studies have looks at this in relation to Pakistan, small and large studies
lack of theoretical relationship of CRM with the above explained variables. Many researcher
neglects this and looks CRM with a different perspective but, in researcher point of view CRM
has a broader perspective and deals in all levels of business whether they are large or small. The
researcher has address the few but most important relations with the existing research. Previous
studies don’t emerge these relations in Performance perspective with a reference to Pakistan.
Research Study gathers data from a well-known reputable organization with 40 number of
respondents. The Primary aim of the study is to describe the relationship consequences and
advantages which can be received from the described variables with a perspective of CRM.

This projects is made up of seven (6) chapters. Chapter 1. Provide the Introduction about CRM
and the introduction about selected organization, the study objective and brief introduction why it
is necessary to study CRM. Chapter 2. Explains the brief overview of the study with the reference
of literature review. Chapter 3. Explains the hypothetical diagram which is based on the particular
study. Chapter 4. Consist of methods of data collection tools and techniques. Chapter 5 is based
on data analysis and the results of collected data. Chapter 6. Consist of the main findings,
conclusion, limitations, recommendations and future research directions of the study.

7.2 Main Findings of the Study

a) The aims of the current study are based on the research hypothesis established after
reviewing the literature which is rare in this context: Specifically these were
b) To ascertain the importance of after sales services provided by organizations.
c) To correlate the relationship of customer advocacy with organizations performance.
d) To determine the importance of customer satisfaction with a view to customer oriented
business, (Does these businesses have more growth with it or not).
e) To determine the effect of three variable customers advocacy, after sales services, customer
satisfaction on fourth variable “Turnover”.
f) To ascertain the effect on turnover on organization’s profits with respective factors.

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g) To ascertain the relationship whether these all variables helpful for entrepreneurial to boost
their business performance and profits.
h) These variables possible to enhance organization performance with CRM perspective.

First, these findings revealed that the results and reliability of the overall questionnaire is above
the acceptable range of the results of the researcher supported by the existing literature.

Second, the four main variables customer advocacy, after sales services, customer’s satisfaction
and turnover correlate with organization performance and profitability.

Third, these finding also reveals that these variables strongly effect organizations performance and
profitability and without the implication of these variables the organization only suffer with loss
as a result the organization may shutdown.

Fourth, after sale services are the main pivot of any business, especially those who are engaged
in sale and purchase of goods. Sometimes may be a buyer is seller of goods so after sales services
provide the facility to deal with the problems that customers face after purchasing the product. The
results finding indicates that’s the business who offer after sales services have increased
performance and profitability, because according to results customers feels more secure and
tension free and trust the organization while purchasing goods. There is noticeable change between
the organizations who is after sale services and who don’t use after sales services. The results
findings also indicates a significance profits and competitive difference arising due to after sales
services. In a nutshell, we can conclude that a business can attain competitive edge and gain more
rapid performance by using after sales services. The after sale services from the origin of
hypothesis is proven that it’s have a strong effects on organizations performance and profitability.

Fifth, Customer satisfaction originates a hypothesis with a correlation with organizations


performance and profitability, does this effects? The results of the findings indicates that those
business who focus on customers preference’s and have believe on modern market that “satisfy
the customers”. Are more profit oriented and vast expansion opportunities other than those
business which neglect customer’s preferences. This factor also strongly effects the business
performance so hypothesis created proven as result findings shows that customer oriented business

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are more secure and competitive in emerging market era and have the opportunity to dominate the
market by focusing customers presence’s.

Sixth, Customer advocacy dealing with customers and knowing about them. For this purpose,
organizations hire customer advocates which are of three types, active advocates, passive
advocates and conditional advocates. From the above findings, it is declared that customer
advocates have strong positive effects on customers and organizations performance and
profitability. Customer advocates are necessary and correlate with the turnover of the business. If
a business fail to manage customer advocates and didn’t collects data of customer’s preferences
then organization may suffer with loss. So, in a conclusion we can say that customer advocates are
main pillars to manage CRM and Organizations Performance.

Finally turnover, this correlate with the above three mentioned variables. The researcher want to
see that either turnover is affected by these variable and how these variable effect it, now we have
a conclusion that turnover have its own significance and it is necessary to manage all factors to
attain the desired turnover, basically turnover means profit, that how much organization earning it
without those factors and with those factors. From the above finding it is also declares that
companies prefer to use the three hypothesis variable in order to get higher ratio of turnover. So,
all of the created hypothesis have proven and suggested that, to control and manage a CRM
structure customers advocates. After sales services, customer satisfaction and turnover.

This study provides a number of important findings which together contribution to Knowledge on
organizations performance and profitability. These can be considered in terms of Theory,
Application and helpful for every business.

7.3 Contribution to Knowledge

7.3.1 Theory
Many business can use the findings and results of this research as a theory of principle in order to
find the loop hole in their business and can implement these methodological work to gain more
insight.

7.3.2 Application
This study contributes specifically with regard to the understanding of consequences

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7.4 Limitations of the study


Although the current study signifies an organized endeavor to address the research questions,
certain limitations affected it. The Likert scale was applied in this study and provided five options
to the respondents. However, the space between each option may not be equidistant and the use of
a linear scale may therefore not exactly measure the true attitude of the respondents. There are
also issues specifically related to the context of undertaking research in Pakistan generally and the
Punjab specifically. The studied sample was geographically scattered and limited, not expanded
in the whole level as this requires significant financial resources. Most importantly, however,
Pakistan as a developing country where academicians are less familiar with the practice of primary
research. Although research ethics were followed in the data collection process, it is possible that
respondents’ bias may be evident, due to a fear of leakage of anonymity. Although this study has
a few limitations, like other studies, the findings of the current study are robust. The following
section describes the future directions of the study

7.5 Future directions of the study

While admitting the limitations of current study, this research project provides one of the most
widespread studies ever undertaken to understand the center Structure of CRM and consequence
of organizations performance and profitability in Pakistan today. Moreover, it is one of the first
studies which is undertaken to describe the CRM with theoretical methods. Therefore, this study
acts as a stepping stone for future directions in this field. A few suggestions are presented for
further research into CRM and organizations performance and profitability. As discussed CRM
have different perspectives and endless cores, deals with the production, turnover and organization
performance and profitability. Therefore, a further study could be undertaken to review other
consequences of organizations performance and profitability such as, Customer advocates
absenteeism, turnover and CRM Staff. Finally the next researchers could continue this research
and widespread their studies according to their financial resources for helping the new
entrepreneurial to guide them how to make services better and maintain the strong relationship
with customers for a new business for better performance and profit purposes.

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