Measuring CRM Effectiveness in Indian Stock Broking Services

Abstract

The article tried to develop a multi-item scale for analyzing CRM effectiveness (CRME) from the customer perspective in the Indian stock broking context. The results revealed that customer satisfaction could be improved through to build customer trust and customer involvement substantially by focusing on the CRM system which further influences customer retention and ultimately, customer loyalty within stockbroking services. The findings of the article will help stockbrokers and their managers for a tactical decision making of CRM system implementation and practices for customer perspective. Despite the huge investment in CRM systems by the stockbrokers, critics have remained unconvinced about the effectiveness of CRM for meeting desired business outcomes. The reason being that broking firms often perceive CRM systems as a specific technology solution rather than integrating customer needs with the firm's strategy, people and business process which generates a parallel need to develop a scale to measures CRM effectiveness in Indian stock broking services from the customer perspective.