The Study on the Effectiveness of Sustainable Customer Relationship Management: Evidence from the Online Shopping Industry

Abstract

Sustainable development integrates business, environmental, and social objectives into a unified effort to achieve a common goal. Sustainable customer relationship management (CRM) combines company strategy, customer-focused business processes, and computer technologies. From the consumer’s perspective, it lowers psychological, energy, time, and other costs; from the company’s perspective, it offers a means of engaging with customers to build lasting and reliable relationships. The sustainable CRM program provides advantages to businesses in various industries, particularly online commerce. It alludes to a comprehensive strategy that promotes solid interactions between buyers and sellers of goods and services. Since current customer retention is less costly than new customer attraction in competitive markets, especially online shopping, identifying the factors affecting relationship management with stable customers is essential. This investigation intends to evaluate the effect of the use of management information systems (MIS), as well as insights on employee behavior and knowledge, and customer behavior (satisfaction and loyalty), on the effectiveness of sustainable CRM in online shopping. The model is validated using the PLS–SEM technique, and study sample of 293 employees and managers from private organizations. According to the results, the MIS, employee behavior and knowledge, customer satisfaction, and customer loyalty influence the effectiveness of sustainable CRM in online shopping. Furthermore, employee behavior and knowledge positively moderate the relationship between customer loyalty and the effectiveness of sustainable CRM. However, the moderating role of employee behavior and knowledge on customer satisfaction and the effectiveness of sustainable CRM is not confirmed. Overall, taking these characteristics into account might help organizations to take significant steps toward increasing the efficacy of sustainable CRM.