Impact of crm on customer loyalty and customer retention with reference to automobile sector

1. Impact of CRM on Customer Loyalty and
Customer Retention with reference to
Automobile Sector
Presented by
MANISH KUMAR CHAUHAN

2. What is CRM ?
• Customer relationship management (CRM) is a term that refers
to practices, strategies and technologies that companies use to
manage and analyze customer interactions and data throughout
the customer lifecycle, with the goal of improving business
relationships with customers, assisting in customer retention
and driving sales growth.

3. Introduction
• The automobile industry in India is one of the largest in the world with
an annual production of 23.96 million vehicles in FY (fiscal year) 2015–
16, following a growth of 2.57 per cent over the last year.
• The Automobile industry accounts for 7.1 per cent of the country's Gross
Domestic Product (GDP).
• Customer Relationship management concept and its effect on customer
loyalty is gaining more and more attention in present business world.
• Companies are much focusing on retaining their loyal customers rather
than gaining new ones.

4. Objective of the study
• The main objectives of the study are as follows:-
• To analyze the effectiveness of customer relationship
management on customer satisfaction.
• To study the impact of customer relationship management on
customer retention in automobile sector and further explore the
various CRM activities conducted/initiated by various
companies.

5. Methodology
• In this research I used Questionnaire Survey method to collect
data,a sample of randomly 100 responses from the NCR
(National Capital Region) of Two wheelers owners are being
collected. The choice of questions for the study include questions
on personal background; age- lowest range was 16-20 and highest
was 40 and above; gender-male/female; employment type-
employed (public, private and self), student and unemployed. The
other questions were on variables used to assess automobile
service performance,customer care services,customer satisfaction
and retention.And analysis part is being done in on MS- Excel.

6. Findings
• This paper has shows the greatly impact of the different
dimensions of CRM towards customer loyalty. From the
analysis, it is being concluded that customer working and
promises are very much reliable. Automobile service provider
fulfills its obligation to customer, are offering advice on how to
invest the predominantly variable which will also increase
customer loyalty. So the automobile sector needs to focus more
attention in the above stated variables, thereby increasing
customer loyalty.

7. • More than 90% of the customers are in the satisfaction and
above satisfaction level. The customers are satisfied with the
company’s services and hence they will be loyal customers and
will be retained.
• This indicates that satisfaction leads to customer loyalty and
retention.According to customers, breakdown of charges are not
explained to them and the paper work is not completed in time
so the companies need to improve on the above mentioned
attributes. As we can see from analysis that more than 95%
customers are satisfied with after sales services at authorised
service centres of automobile.

8. Conclusion
• The research shows some significant factors that lead to the
customer loyalty for automobile was trust associated with on-
time service delivery, quick and fast in handling repair works,
arranging replacement for them,supporting nature and fulfill the
commitment toward customers.

9. Thank you