Systematic Model for Increasing the Profitability through Customer Relationship Management

While in the past, supply was more powerful than demand in the economic relations and interactions between organizations and customers, nowadays, demand enjoys greater power of choice and bargaining than supply. Thus, Customer Relationship Management (CRM) can help organizations attract and retain new customers, increase the customer's repurchase, and develop long-term relationships with customers in order to enhance their expected value. This research aims to explain the role of CRM in Mellat Bank and provide a systematic model to achieve profitability through CRM. The statistical population of the research includes the managers and experts of the bank in Tehran province who are selected through random stratified sampling method. The required data were collected using a questionnaire whose validity and reliability was confirmed through CFA and Cronbach's alpha test. The results show that the appropriateness of processes and the support of CRM have a positive and significant impact on profitability, while the quality of customer data doesnt have a significant effect on profitability. The results also confirm the positive impact of efficiency on customer satisfaction and the positive impact of customer satisfaction on the profitability of the bank. Finally, in addition to the proposed model, proposals are presented, such as the elimination of costly and inefficient processes as well as the development of more interaction with the customers of the bank in order to increase profitability.