How does CRM create better customer outcomes for small educational institutions?

Abstract

This study investigates the role of Customer Relationship Management (CRM) in the effective
management of parent satisfaction and loyalty in small or medium-sized educational institutions. We
developed and tested a two-level model in which the implementation of CRM was related to parent
satisfaction and loyalty. A total of 600 parents involving 60 children’s English cram schools in Taiwan
were analyzed using Hierarchical Linear Modeling (HLM), with results that partially supported the
proposed model. More specifically, knowledge management was positively related to parent satisfaction
and parent loyalty while key customer focus had no significant relationships with parent satisfaction
and parent loyalty. In addition, parent satisfaction was associated with parent loyalty. Both theoretical
and practical implications are discussed.