System dynamics modelling in CRM : window fashions gallery

Abstract

The core research issue on which this study focuses is customer relationship management (CRM) in a designated window fashions firm. A system dynamics-based CRM model is developed to help evaluate the effectiveness of CRM in the firm and examine factors affecting customer satisfaction. Different relationships and linkages between the firm, its employees, and its customers are identified to establish feedback loops that analyze the system over time. The analysis of the CRM model shows that employee satisfaction is the key leverage point affecting customer satisfaction, number of customers, and sales volume of the firm. Product attractiveness and service quality also play an important role in influencing the level of customer satisfaction. On the other hand, advertising and employee training have only minor effects on customer satisfaction.