The Path to Customer Loyalty: Analysing CRM's Mediating Role with Customer Satisfaction, Value, and Brand Image

Abstract

In today's competitive market landscape, fostering customer loyalty has become paramount for businesses seeking sustainable growth, with Customer Relationship Management (CRM) playing a pivotal role in bridging customer satisfaction, perceived value, retention, and brand image to enhance loyalty. This research establishes the correlation between brand image, customer satisfaction, customer retention, customer value, and customer loyalty, with CRM as the mediator factor. The research employs a survey technique with five-point Likert scale questionnaires as the primary data collection instrument. The sample of 300 respondents was comprised of students, employed working professionals, and business persons from the Bahawalpur District in Punjab. These respondents were selected based on their awareness of common Pakistani clothing brands, including Khaadi, Nishat Linen, Alkaram, Ideas, Sapphire, and Warda. Structural equation modelling is used in the analysis to test the proposed relationships between the variables. The findings reflected that all the hypothesized and tested relationships were positive and strongly supported the proposition of brand image, customer satisfaction, customer retention, and customer value, affecting customer loyalty greatly. Moreover, it emerged that CRM acted as a mediator in reinforcing the relationships described above and thus can be deemed critical in fashioning customer loyalty in the context of the apparel industry. Consequently, research insights are relevant for managers intending to increase customer retention and develop effective CRM initiatives. Customer perceptions and values are given prominence in this study concerning brand loyalty, especially for organizations that compete in customer-driven sectors. Based on these findings, it must be possible for apparel brands in Pakistan to learn how to relate with their customers appropriately to build enduring loyalty.