A theoretical analysis of the mediating role of customer relationship management performance on customer retention in South African motor dealerships

In the modern era which is highly customer-centric, prioritising customer metrics such as service quality, customer satisfaction, customer loyalty and customer value is a strategic weapon in attracting and particularly retaining existing customers. Viable marketing strategies for any organisation predominantly in the motor dealership services sector must endeavour to ensure that these metrics prevail, in order to build and sustain competitive advantage. To accomplish this, motor dealership managers need to reinforce the performance of Customer Relationship Management (CRM) activities. Although there is a significant body of literature about the concepts of customer value, service quality, customer satisfaction and customer loyalty, there is limited empirical research on how these improve CRM performance and the ultimate influence on customer retention. Hence, this article presents a normative framework that seeks to understand the effects of customer evaluation metrics on CRM performance, and the mediating role of CRM performance on customer retention.