Customer retention through customer relationship management : the exploration of two-way communication and conflict handling

Organisations such as banks and short-term insurance organisations become more aware of the importance of customer relationship management (CRM) and its potential to help them acquire new customers, retain existing ones and maximise their lifetime value. A close relationship with customers will require a strong coordination between information technology (IT) and marketing departments to provide a long-term retention of selected customers. The primary objective of this study is to investigate the influence of selected independent variables, two-way communication and conflict handling on intentional customer loyalty via CRM as the intervening variable at a South African shortterm insurance organisation. Primary data were gathered using a questionnaire, with items referring to CRM, customer loyalty, two-way communication and conflict handling. The sample consisted of 254 customers in four major centres in South Africa. Data were factor-analysed. One independent variable, conflict handling exerted a statistically significant positive influence on the intervening variable (CRM), while two-way communication exerted a statistically significant negative influence on the intervening variable (CRM). The intervening variable (CRM) positively influenced the dependent variable (Customer Loyalty). If short-term insurance organisations communicate timeously and accurately, and are skilled in conflict handling, greater loyalty will be created among customers

Exploring the relationship between trust, commitment and customer loyalty through the intervening role of customer relationship management (CRM).

The purpose of the study is to investigate customer relationship management (CRM) and its influence on customer loyalty at selected short-term insurance providers in the Gauteng province of South Africa. The target population included all South Africans who currently have a policy with at least one of the selected short-term insurance providers in the study. The convenience sampling method was applied, and a sample of 500 respondents was selected. An interview administered questionnaire was used for the gathering of data. The study indicated that a significant negative relationship existed between commitment and CRM. It was evident that no significant relationship existed between trust and CRM. The study also revealed that a strong positive relationship existed between CRM and customer loyalty at the four selected short-term insurance providers in South Africa. Strategies were also provided for ways in which the four selected short-term insurance providers can maintain and improve their relationships with their customers in order to encourage loyalty, and therefore increase profitability

Measuring the attitude and intention to purchase different cohorts towards a fast food retailer

The elements of the extended marketing mix play a crucial role in assisting a business to gain a competitive advantage over competitors. A combination of the elements of the extended marketing mix is considered by consumers when making a decision to purchase at a fast-food outlet. The article attempts to emphasise whether race, gender and age groups experience the influence of the extended marketing mix elements differently on their intention to purchase at a fast-food retailer. The target population for this study included all visitors to a fast food retail brand in the greater Johannesburg Metropolitan region in Gauteng from which a convenience sample of 209 was selected. Respondents participated through personal interviews in the completion of questionnaires. The Independent sample T-test and the Pearson chi-square test was used to determine whether significant differences exist between the responses of the different gender and age groups in the study. The study established that there is a difference in the relationship between the elements of the extended marketing mix and consumers’ intention to purchase from a KFC fast food retailer based on race, gender and age. These differences require consideration by KFC fast food retail management to ensure that their marketing strategy encompasses biographical variables such as race, gender and age. This will ensure that the needs of the target market are addressed according to these biographical variables, resulting in increased customer satisfaction and market share growth

The relevance of social media as information source when selecting private schools in South Africa

Abstract: Parents are considering many sources of information when selecting a private school in South Africa. The aim of this paper is to determine these sources of information and the relevant importance thereof. The research methodology was exploratory and quantitative in nature with respondents from thirty private schools surveyed in the study with a total of six hundred and sixty nine respondents. The analysis used was descriptive statistics as well as factor analysis. Nineteen (19) information sources were identified with social media indicated as a less preferred choice of information source. The opportunity however for private schools lies in social media as marketing tool

The supplier relationship practices of travel agencies in the Western Cape Province - What is the status quo?

Purpose: The purpose of the article is to explore the supplier relationship practices of travel agencies in the Western Cape province. The article wants to establish the current supplier relationship practices of travel agencies in the province and to identify limitations in supplier market relationships which might exist in the industry. Problem investigated: Relationships are the basis on which trade in the travel industry is built (George, 2006:224). The establishment and management of these relationships must be to the advantage of all parties in the relationship (Swart, 2003:120). Townes (2007) indicated that the current level of relationships that exists between travel agencies and their suppliers, especially the South African Airways (SAA), the Protea and Southern Sun hotel groups and motor vehicle rental companies such as AVIS is fragmented and negatively impairs on the ability of travel agents to deliver a quality service to their customers. To improve their overall level of service delivery to both corporate and leisure customers, it is important for travel agencies to know and understand the current level of their relationships with suppliers. It is against this background that the research was undertaken. Methodology: The target population for this study was 118 travel agencies of which 61 managers and/or owners participated through personal interviews in the completion of questionnaires. Data analysis was done by calculating averages and standard deviations, Explorative Factor Analysis (EFA), Cronbach Alpha-values and practical significance by means of effect sizes. Findings: The owners and managers of travel agencies are of the opinion that the strengthening of their existing relationships with suppliers must be prioritised. More emphasis should be placed on the strengthening of existing communication channels between travel agencies and their suppliers to secure the faster resolution of queries and complaints and to enhance the sharing of information, skills and knowledge between the two parties. The results further indicated that the development of long term relationships with suppliers are important for the future existence of the travel agency industry in the Western Cape. The establishment of these relationships must, however, be to the advantage of both parties in the relationship Conclusion: Travel agencies and their suppliers should work in collaboration to improve their service delivery to customers by sharing information on product development, marketing and promotional strategies as well as future distribution initiatives. It is also important that both travel agencies and their suppliers should believe in the long term value of establishing a relationship with each other. It is for this reason that trust and commitment are prerequisites for the establishment of such a relationship

Customer Retention Strategies For Disintermediated Travel Agents: How To Stop Customers From Migrating To Online Booking Channels

Remaining relevant to customers and retaining customers who could consider booking online, requires travel agents to modify their marketing strategies.  Travel agents need to find new ways to add value for customers and suppliers to reinstate their roles in the travel distribution process and ultimately retain their customers. A total of 600 travel agencies in South Africa participated in the study through the completion of an online survey.  The data analysis technique used for the study was path analysis.  The findings stipulate that travel agency owners and managers believe that providing differentiated products to their leisure customers, is the key to winning back lost customers and keeping existing customers.  Travel agency owners and managers further indicated that this is an existing reintermediation strategy that they plan to practise in the future as well.  It is therefore recommended that travel agents focus on delivering high-quality service to win back lost customers and thus reintermediate their businesses.

Relationships amongst extended internal marketing variables, brand recognition and brand recall in service organisations : a comparative study

Abstract: This comparative study examined relationships among the extended internal marketing mix elements and brand recognition and recall in two South African service organisations. The internal marketing mix elements used to determine their influence on brand recognition and recall as perceived by customers of car rental companies and stakeholders of the Council for Medical Schemes (CMS), consisted of people, process, positioning and performance, while brand recall referred to trustworthiness, overall evaluation and loyalty. Structural equation modelling was used to analyse the data. The findings of the study indicated that process and performance are critical for car rental customers to recognise and recall the brand, compared to CMS stakeholders who perceived people, positioning and performance as important for recognising the brand and building trustworthy and loyal relationships. Hence, irrespective of the type of service organisation, the successful implementation of internal marketing programmes is essential to enhance the brand recognition and recall of these organisations

A Theoretical Framework For Managing CSR Plans And Related Initiatives In The Modern Business Environment

Organisations can make a valuable contribution in alleviating poverty and improving the general living standards of society. In the modern turbulent business environment, characterised by intense competition and customers demanding corporate responsibility, it further seems that a well-managed corporate social responsibility (CSR) plan could assist executives in winning the hearts and minds of their customers. Regular interactions with stakeholders on CSR initiatives can also assist executives in identifying trends in the market and introducing innovations. CSR can further be used as a strategic tool to manage the reputation of the organisation. Consequently, the purpose of this paper is to provide a theoretical framework on guidelines that organisations could implement to manage their CSR plans and CSR-related initiatives more effectively. A number of secondary sources, including textbooks and previous research studies, were consulted in compiling the proposed framework which includes actions that executives could take to design and implement their CSR plans more effectively. In addition, principles for the effective management of CSR-driven innovations and reputation management initiatives are also provided. The framework also focuses on guidelines for the types of social media initiatives that would need to be incorporated into the executive’s strategic plan to ensure that the strategy implemented is truly competitive. The paper concludes with a number of recommendations that could be further investigated in a follow-on empirical study to provide further assistance to organisations wishing to survive and grow their businesses in the modern turbulent business environment. The paper is relevant to executives requiring guidance on implementing their CSR initiatives more successfully and contributes to the improvement of organisational behaviour within the socially responsible environment

Customer relationship management (CRM) in a South African service environment : an exploratory study

The primary objective of the study was to investigate the influence of trust, commitment, two-way communication and conflict handling on customer loyalty through customer relationship management (CRM) as a mediating variable at a South African long-term insurance organization. Both a qualitative and quantitative research approach was followed in the study. The population included all the customers of a long-term insurance provider in South Africa who held a life-insurance policy at the time of the study. The sample consisted of 254 customers in four major centers in South Africa. Primary data was gathered using a structured questionnaire, with items on a 7-point Likert scale referring to trust, commitment, two-way communication, conflict handling, CRM and customer loyalty. The statistical analysis that was used in the study included multiple regression analysis to test the hypotheses. The findings stipulate that a significant positive relationship exists between trust, commitment and conflict handling, and CRM at a long-term insurance provider in South Africa. The study further revealed that a significant negative relationship exists between two-way communication and CRM at the insurance provider. In addition, it was found that there is a significant positive relationship between CRM and customer loyalty at the insurance provider in South Africa. Therefore, long-term insurance providers in South Africa can improve and maintain the relationships between themselves and their customers if they exhibit trustworthy behavior, show genuine commitment to service, communicate information to customers efficiently and accurately, thereby also listening to their customers and handling potential and manifested conflicts skilfully. This will ultimately contribute to customer loyalty, which will ensure economic prosperity for the long-term insurance provider

Application of the Technology Acceptance Model and the Technology–Organisation–Environment Model to examine social media marketing use in the South African tourism industry

Abstract: Background: In tourism globally there is a growing interest in social media marketing research. However, most previous research on social media marketing has focused on large tourism enterprises such as chain hotels, leaving out small tourism businesses such as travel agencies and tour operators. Objective: The aim of this research was to establish factors that influence attitude towards the use of social media marketing by travel agencies and tour operators in South Africa. Method: The study adopted a quantitative approach through the use of questionnaires. Data used in the analysis was collected from a total of 150 travel agencies and tour operators by means of a structured questionnaire. Multiple regression analysis and one‐way ANOVA were used for data analysis..