The effect of customer relationship management (CRM) on business profitability in Jordanian logistics industries: The mediating role of customer satisfaction

Abstract

In today's competitive business environment, the implementation of Customer Relationship Management (CRM) strategies is essential for firms to succeed. The purpose of this study is to investigate the relationship between CRM, customer satisfaction, and business profitability in the Jordanian logistics industry. Specifically, the study examines how customer satisfaction mediates the effect of three key CRM on business profitability. To achieve this, Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze data collected from 384 employees of logistics firms in Jordan. The results of the study suggest that CRM positively affects customer satisfaction, and that customer satisfaction has a significant mediating effect on the relationship between CRM and business profitability. The findings of this study have important implications for logistics firms seeking to improve their business profitability through the adoption of CRM. By focusing on the three key CRM (Customer Identification, Customer Acquisition, and Customer Analytics), firms can improve their customer satisfaction levels, which, in turn, can lead to improved business profitability. This study adds to the growing body of literature on CRM practices and their impact on business profitability, particularly in the context of the Jordanian logistics industry.