The Impact of Customer Relationship Management on Customer Loyalty: The Moderating Role of Web Site Characteristics

Abstract

The aim of this study is to explain the impact of Web site characteristics on the relation between customer relationship management (CRM) and customer loyalty. Data collected from 170 Canadian IT organizations showed that Web site characteristics (which include the levels of the organizations' Internet presence and interactivity) have a significant impact on the link between CRM (in terms of partnerships, empowerment, relations with customers, and personalization), and customer loyalty. In other words, using the Internet to support CRM allows firms to increase their customer loyalty in the IT sector. However, the impact of Web site characteristics on the link between CRM, in terms of understanding customer expectations, customer prospecting, and interactive management, and customer loyalty has not been tested because the direct link between these three components of CRM and customer loyalty has not been significant in this study. The managerial and theoretical implications of these results are discussed.