Strategic components in relation to CRM amongst SMTEs of the Eastern Cape, South Africa.

Abstract

Universally, SMTEs play a dominant role in the tourism industry. These businesses are often vulnerable to external economic forces and find it increasingly difficult to transform their strategic management to face the challenges placed upon them. This study focused on SMTEs in the EC province, which is economically the poorest province of SA. Strategic factors have become of pivotal importance to many organisations as businesses strive for competitive advantages through building relationships with their customers. The multivariate technique of exploratory factor analysis was used to assess the discriminant validity of the measuring instrument. Five factors with a positive impact on CRM were identified from the exploratory factor analysis of the data. The factors were business strategy; customer strategy; touch points; competencies, skills and technology; and perceived business performance. Cronbach’s alpha coefficients were calculated to establish whether the factor scores were reliable with acceptable internal consistency. The results elucidate an overall statistically significant association between CRM readiness and business strategy; customer strategy; touch points and competencies, skills and technology. Overall, the findings of this study have made a contribution toward a largely under-researched area concerning CRM in SMTEs. It is recommended that future researchers conduct a longitudinal study and investigate other factors which impact CRM.

Keywords

• Customer relationship management
• Tourism
• Strategic