CUSTOMER RELATIONSHIP MANAGEMENT ADOPTION AS A DRIVER OF LOYALTY: A STUDY OF SMALL-SCALE BUSINESSES IN ONITSHA, NIGERIA
Abstract
In today’s increasingly competitive business environment, cultivating strong relationships with customers has become vital for the sustainability and growth of small-scale enterprises. Customer Relationship Management (CRM) strategies offer businesses the tools to enhance customer satisfaction, build loyalty, and remain resilient in dynamic market conditions. Particularly for small-scale businesses in developing urban centers, CRM plays a crucial role in improving service delivery and fostering repeat patronage. However, the extent to which these businesses understand, adopt, and integrate CRM practices varies significantly and is often influenced by contextual factors such as technological readiness, organizational structure, and resource availability. This study examined the perceived extent of CRM strategy adoption and its relationship with customer loyalty among small-scale retail businesses in Onitsha, Nigeria. It explored CRM practices in terms of customer orientation, CRM technology, knowledge management, and CRM organization, as well as customer loyalty through behavioral and attitudinal dimensions. Using a descriptive-correlational design, data were gathered from 240 business owners or managers and 240 customers selected through purposive sampling. Findings revealed that while small-scale businesses focus on relationship-building and personalized service, they inconsistently utilize customer feedback. CRM technology adoption is minimal, and although businesses use customer information to enhance service, structured knowledge management systems are lacking. Internal prioritization of CRM is evident, yet formal CRM structures remain underdeveloped. Customers exhibit repeat buying behavior, indicating moderate behavioral loyalty, but their emotional connection to businesses remains limited. A strong to moderate positive correlation was found between CRM adoption and customer loyalty, underscoring CRM's role in customer retention. However, challenges such as limited technical skills, high software costs, and infrastructural barriers hinder CRM implementation. The study concludes by recommending increased support through training, subsidies, and system development to enhance CRM adoption and sustain customer loyalty.
JEL: M31, M15, L81, O33
Article visualizations:
Keywords
Full Text:
PDFReferences
Abrokwah-Larbi, K. (2024). The Impact of Customer-Focus on the Performance of Business Organizations: Evidence from SMEs in an Emerging West African Economy. African Journal of Economic and Management Studies, 15(1), 31-59. Retrieved from https://doi.org/10.1108/AJEMS-04-2022-0167
Adaji, D. (2024). Focus on the SME for Economic Growth, Expert Tells FG. [Accessed ON March 22, 2025, from: https://punchng.com/focus-on-the-sme-for-economic-growth-expert-tells-fg/
Aidoo, S.O., Agyapong, A., Acquaah, M., and Akomea, S.Y. (2021). The Performance Implications of Strategic Responses of SMEs to the Covid-19 Pandemic: Evidence from an African Economy. Africa Journal of Management, 7(1), 74-103. https://doi.org/10.1080/23322373.2021.1878810
Akanyonge, J., Obeng-Amponsah, W., and Owusu, E.L. (2023). Financial Development and SMEs in African Countries. In Finance for Sustainable Development in Africa. Routledge, 252-276. Retrieved from https://www.taylorfrancis.com/chapters/edit/10.4324/9781003215042-18/financial-development-smes-african-countries-joshua-akanyonge-william-obeng-amponsah-erasmus-larbi-owusu
Akhgari, M. (2015). How Attitudes Translate to Loyalty: Revising Loyalty in Regards to its Components and Antecedents in Relationship Marketing. Unpublished Dissertation, University of Manitoba, Canada. Retrieved from https://doi.org/10.1080/15332667.2024.2368323
Alagarsamy, S., Mehrolia, S., and Singh, B. (2021). Mediating Effect of Brand Relationship Quality on Relational Bonds and Online Grocery Retailer Loyalty. Journal of Internet Commerce, 20(2), 246-272. https://doi.org/10.1080/15332861.2020.1868213
Almashawreh, R. (2023). Determinants of adoption and impact of digital technologies by SMEs in Jordan. Unpublished Doctoral Dissertation, University of Canberra, Australia. Retrieved from https://researchsystem.canberra.edu.au/ws/portalfiles/portal/82810754/Almashawreh_Ra_ed_Jamal.pdf
Ausat, A.M.A. (2025). In-Depth Study of the Strategic Interaction between Electronic Commerce, Innovation, and Attainment of Competitive Advantage in the Context of SMEs. International Journal of Analysis and Applications, 23, 78-78. http://dx.doi.org/10.28924/2291-8639-23-2025-78
Azeem, M., Aziz, S., Shahid, J., Hayat, A., Ahmed, M., and Khan, M.I. (2022). The Impact of Customer-Centric Business Strategies on Customer Relationship Management: Pharmaceutical Field-Force Perspective. International Journal of Pharmaceutical and Healthcare Marketing, 16(1), 138-154. Retrieved from http://dx.doi.org/10.1108/IJPHM-09-2020-0083
Chaithanapat, P., and Rakthin, S. (2021). Customer Knowledge Management in SMEs: Review and Research Agenda. Knowledge and Process Management, 28(1), 71-89. https://doi.org/10.1002/kpm.1653
Chatterjee, S., Chaudhuri, R., Vrontis, D., Thrassou, A., and Ghosh, S.K. (2021). ICT-Enabled CRM System Adoption: A Dual Indian Qualitative Case Study and Conceptual Framework Development. Journal of Asia Business Studies, 15(2), 257-277. https://doi.org/10.1108/JABS-05-2020-0198
Chipongoma, C., and Mwange, A. (2025). A Multidimensional Review of Social Media Marketing Adoption Among MSMEs: Insights from Zambia. African Journal of Commercial Studies, 6(2), 81-89. Retrieved from https://www.researchgate.net/journal/African-Journal-of-Commercial-Studies-2958-2326?_tp=eyJjb250ZXh0Ijp7ImZpcnN0UGFnZSI6InNjaWVudGlmaWNDb250cmlidXRpb25zIiwicGFnZSI6InB1YmxpY2F0aW9uIn19
Christopoulou, A., and Gialelis, P. (2021). Addressing the Challenge of Customer Management for SMEs. SPOUDAI-Journal of Economics and Business, 71(3/4), 68-85. Retrieved from https://ideas.repec.org/a/spd/journl/v71y2021i3-4p68-85.html
Chu, Y., Vasquez-Parraga, A.Z., and Ma, J. (2021). The Drivers of Customer Satisfaction, Trust, Commitment, and Loyalty among Chinese Consumers. International Journal of Business and Systems Research, 15(6), 807-821. Retrieved from https://ideas.repec.org/a/ids/ijbsre/v15y2021i6p807-821.html
Das, D.K. (2021). Role of Micro, Small, and Medium Enterprises (MSMEs) in Economic Development of India. International Journal of Multidisciplinary Research and Explorer, 1(9), 1-7. https://doi.org/10.169359/IJMRE.20212115690796
Elahi, A.R., Ahmed, A., Majid, S., and Asif, M.F. (2021). Critical Factors Associated with the Access to Bank Credit: An Exploratory Study. Humanities and Social Sciences Reviews, 9(3), 135-144. http://dx.doi.org/10.18510/hssr.2021.9315
Fanelli, R.M. (2021). Barriers to Adopting New Technologies within Rural Small and Medium Enterprises (SMEs). Social sciences, 10(11), 430. https://doi.org/10.3390/socsci10110430
Gazi, M.A.I., Al Mamun, A., Al Masud, A., Senathirajah, A.R.B.S., and Rahman, T. (2024). The Relationship between CRM, Knowledge Management, Organization Commitment, Customer Profitability and Customer Loyalty in Telecommunication Industry: The Mediating Role of Customer Satisfaction and the Moderating Role of Brand Image. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 100227.
Grönroos, C. (1994). From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing. Management Decision, 32(20), p. 4-20. https://doi.org/10.1108/00251749410054774
Hamida, A., Alshehhia, A., Abdullaha, A., and Mohamed, E. (2022). Key Success Factors for Customer Relationship Management (CRM) Projects within SMEs. Emirati Journal of Business, Economics and Social Studies, 1(2), 73-85. http://dx.doi.org/10.54878/EJBESS.176
Inuwa, M.L., and Ali, H.Y. (2024). Assessment of CRM and E-Marketing Strategies on Agri-SMEs Performance in Bauchi State, Nigeria. African Journal of Management and Business Research, 14(1), 10-24. https://doi.org/10.62154/429kge87
Klaas, S., and Bvuma, S. (2023). Digital Readiness for Small, Medium, and Micro Enterprises (SMMEs). Tec Empresarial, 5(2), 1150-1166.
Kumolu-Johnson, B. (2024). Improving Service Quality in the Fast-Food Service Industry. Journal of Service Science and Management, 17(1), 55-74. http://dx.doi.org/10.4236/jssm.2024.171002
Ledro, C., Nosella, A., and Dalla Pozza, I. (2023). Integration of AI in CRM: Challenges and Guidelines. Journal of Open Innovation: Technology, Market, and Complexity, 9(4). https://doi.org/10.1016/j.joitmc.2023.100151
Lee, J., and Park, K. (2024). The Effects of Hedonic Shopping Values on Loyalty towards Small Retailers: The Moderating Role of Trust. Journal of Retailing and Consumer Services, 76. https://doi.org/10.1016/j.jretconser.2023.103615
Mugano, G. (2024). SMEs and Economic Development: Global and African Perspectives. In SMEs Perspective in Africa: Creating Sustainable and Resilient Economies. Cham: Springer Nature Switzerland, 9-26. Retrieved from https://link.springer.com/book/10.1007/978-3-031-69103-4
Nkofu, T. (2023). Assessing the Effectiveness of Information Systems for SMEs Growth and Failure Prevention in Lesotho. Unpublished Doctoral Dissertation, North-West University, South Africa. Retrieved from https://repository.nwu.ac.za/server/api/core/bitstreams/a76a5281-5484-4ab3-8c2b-3fe09c5d9283/content
Nwankwo, C.A., and Kanyangale, M.I. (2023). Customer Relationship Management and Survival of Manufacturing Small and Medium Enterprises in Nigeria. Journal of Economic and Social Development, 10(2), 30-40. Retrieved from https://www.researchgate.net/publication/373040659_Customer_Relationship_Management_and_Survival_of_Manufacturing_Small_and_Medium_Enterprises_in_Nigeria
Nurhasanah, N., and Sari, P.R. (2024). Customer Experience Relationships and Customer Retention in the Retail Industry in the Digital Era on Shopee E-commerce. In Bengkulu International Conference on Economics, Management, Business and Accounting, 2, 707-718. Retrieved from http://dx.doi.org/10.33369/bicemba.2.2024.36
Ochia, K., and Ochia, K. (2022). Onitsha: The Largest Market in Nigeria—One of the Largest in West Africa. Marketplace Trade and West African Urban Development: A Paradox, 49-80. https://doi.org/10.1007/978-3-030-87556-5_3
Okeke, N.I., Alabi, O.A., Igwe, A.N., Ofodile, O.C., and Ewim, C.P.M. (2024). Customer Journey Mapping Framework for SMEs: Enhancing Customer Satisfaction and Business Growth. World Journal of Advanced Research and Reviews, 24(1), 2004-2018. https://www.researchgate.net/publication/389680208_Corresponding_author_Nnenna_Ijeoma_Okeke_Customer_journey_mapping_framework_for_SMES_Enhancing_customer_satisfaction_and_business_growth
Omowole, B.M., Olufemi-Philips, A.Q., Ofadile, O.C., Eyo-Udo, N.L., and Ewim, S.E. (2024). Barriers and Drivers of Digital Transformation in SMEs: A Conceptual Analysis. International Journal of Frontline Research in Multidisciplinary Studies, 5(2), 019-036. http://dx.doi.org/10.56781/ijsrst.2024.5.2.0037
Oyeyemi, O. (2024). Glocalization Business Strategies for SME Sustainability in Nigeria. Unpublished Doctoral Dissertation, Walden University, United States. Retrieved from https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=16669&context=dissertations
Pribadi, A., and Sayidah, N. (2024). A Comprehensive Review of Service Quality, Perceived Value, Loyalty, and Customer Satisfaction: Integration and Implications for Modern Marketing Strategies. Journal of Economics, Management, Entrepreneurship, and Business, 4(2), 69-82.
Pulka, B.M., and Gawuna, M.S. (2022). Contributions of SMEs to Employment, Gross Domestic Product, Economic Growth and Development. Jalingo Journal of Social and Management Sciences, 4(1), 1-18. Retrieved from https://www.researchgate.net/publication/359255906_Contributions_of_SMEs_to_Employment_Gross_Domestic_Product_Economic_Growth_and_Development
Querbach, S., Kammerlander, N., Singh, J., and Waldkirch, M. (2022). Pragmatic Learning in Family SMEs: A Qualitative Study of Functional Overload among Family SME Owner-Managers. Journal of Knowledge Management, 26(2), 375-402. http://dx.doi.org/10.1108/JKM-08-2020-0657
Reniati, R., Susantyo, B., Irmayani, N.R., Sabri, F., and Widiastuti, W. (2024). The Influence of Leadership Strategies and Social Capital on the Business Performance and Resilience of Indonesian MSMEs. Journal of the Knowledge Economy, 1-40. https://doi.org/10.1007/s13132-024-02254-8
Rokhim, A. (2024). Business Management Strategies to Enhance MSME Competitiveness. Indonesian Economic Review, 4(2), 40-58. https://www.iconev.org/index.php/ier/article/view/..
Salah, O.H., Yusof, Z.M., and Mohamed, H. (2021). The Determinant Factors for the Adoption of CRM in the Palestinian SMEs: The Moderating Effect of Firm Size. PloS One, 16(3). https://doi.org/10.1371/journal.pone.0243355
Sindhwani, R., Hasteer, N., Behl, A., Varshney, A., and Sharma, A. (2023). Exploring “What,” “Why” and “How” of Resilience in MSME Sector: A M-TISM Approach. Benchmarking: An International Journal, 30(6), 1884-1911. https://doi.org/10.1108/BIJ-11-2021-0682
Suh, T., and Lee, S.B. (2023). Configuring Managerial Factors to Enhance Omnichannel Experience and Customer Engagement Behaviors for a Solid Loyalty Loop. Electronic Commerce Research, 23(3), 1591-1619. Retrieved from http://dx.doi.org/10.1007/s10660-022-09661-6
Teklehaimanot, M.L., Kamebo, E.O., and Gebremichael, G.G. (2023). Customer–Centric Informal Business Marketing in Africa: The Case of Ethiopian MSMEs. Small Enterprise Research, 30(2), 154-170. https://doi.org/10.1080/13215906.2022.2086610
Temowo, O. (2024). The Impact of Technology-Driven Supply Chain Systems on Market Penetration of SMES In Developing Economies: A Study of Nigerian SMES. Unpublished Dissertation, Georgia State University, United States. https://doi.org/10.57709/36980722
Van Doorn, J., Lemon, K.N., Mittal, V., Nass, S., Pick, D., Pirner, P. and Verhoef, P.C. (2010). Customer Engagement Behavior: Theoretical Foundations and Research Directions, Journal of Service Research, 13(3), 253–266. http://dx.doi.org/10.1177/1094670510375599
Vuko, S., Thango, B., and Nethanani, R. (2024). Customer Relationship Management (CRM) Systems and their Impact on SMEs Performance: A Systematic Review. Sustainability, 16(x), 1-52. https://ssrn.com/abstract=4997314 or http://dx.doi.org/10.2139/ssrn.4997314
Weibe, A. (2024). A Qualitative Investigation of the Technology Acceptance Model in the US Cooperative Extension Service on the Adoption of Customer Relationship Management Systems. Unpublished Doctoral Dissertation, Liberty University, United States. https://digitalcommons.liberty.edu/doctoral/5394/
Wicaksono, R.A. (2025). E-Commerce Market Saturation in Indonesia: The Dynamics of Price Competition from Islamic Economic Perspective. Jurnal Ekonomika dan Bisnis Islam, 8(1), 1-19. https://doi.org/10.26740/jekobi.v8n1.p1-19
Wright, S.B. (2023). Ease of Use and Usefulness as Determinant Factors of CRM Adoption: A Qualitative Descriptive Study. Unpublished Doctoral Dissertation, Grand Canyon University, United States.
Yoshino, M., Sadlek, B., Yarime, M., and Ali, A. (2025). Knowledge Absorption Pathways for Eco-Innovation: An Empirical Analysis of Small and Medium-Sized Enterprises in the European Union. European Journal of Innovation Management, 28(2), 426-453. https://doi.org/10.1108/EJIM-02-2023-0136
Yuliani, R., Utami, E.M., Nursjanti, F., Amaliawiati, L., and Komariah, S. (2024). Financial Management Training for MSMEs to Increase Business Efficiency and Profitability UKM Sinarmukti Kebon Kalapa RT 02 RW 02 Margamukti Village, North Sumedang District, Sumedang Regency. Abdimas: Jurnal Pengabdian Masyarakat, 7(1), 325-335. https://doi.org/10.35568/abdimas.v7i1.4470
Yuwono, T., Suroso, A., and Novandari, W. (2024). Information and Communication Technology in SMEs: A Systematic Literature Review. Journal of Innovation and Entrepreneurship, 13(1), 31. Retrieved from https://innovation-entrepreneurship.springeropen.com/articles/10.1186/s13731-024-00392-6
Zhang, X., Xu, Y., and Ma, L. (2022). Research on Successful Factors and Influencing Mechanism of the Digital Transformation in SMEs. Sustainability, 14(5), 2549. https://doi.org/10.3390/su14052549
DOI: http://dx.doi.org/10.46827/ejmms.v10i2.2010
Refbacks
- There are currently no refbacks.
Copyright (c) 2025 Chimezie Victor Onyenezide
This work is licensed under a Creative Commons Attribution 4.0 International License.
The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.
Copyright © 2017-2026. European Journal of Management and Marketing Studies (ISSN 2501 - 9988) is a registered trademark of Open Access Publishing Group. All rights reserved.
This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.
