Resumen de Profitabiliity through Customer Relationship Marketing

Vahid Pezeshki, Alireza Mousavi, Richard T. Rakwoski

• The purpose of this literature study is to review and summarise the previous work on relationship marketing based on the relationship between satisfaction, loyalty and retention. The framework of relationship marketing is described within relationship between customer satisfaction, customer loyalty, and customer retention. For today’s savvy managers, Relationship Marketing is hardly a new concept. The firms have already focused on understanding the customer’s needs and building a marketing strategy around those needs. But it is critical that the main underlying principals (satisfaction, retention, and loyalty) are understood before an organisation starts to develop a relationship marketing strategy. In this literature study, we aim to understand that high levels of each of relationship marketing principals do not always yield high levels of the others and so as increased sales even though the relationship is positive. This paper intends to discuss previous research findings, and an exploration of the theoretical and managerial implications.