Authors: Dr. MD ASHRAFUL ISLAM1* and Dr. SUGUNA SINNIAH²

Abstract

This study examined the influence of customer relationship management (CRM) factors (customer orientation, customer advocacy, customer knowledge, and customer engagement) on customer retention in the context of Bangladesh. In addition, the study investigated the mediating effect of customer trust in these relationships and the moderating role of innovation capacity in the link between CRM factors and customer retention. Relationship Marketing Theory, the Commitment-Trust Theory, and Dynamic Capability Theory were applied to understand the relationships among variables. Using a quantitative approach, data were collected from 390 software users across various business organizations through a structured survey questionnaire and applied stratified sampling technique. Structural Equation Modeling (SEM) was employed to analyze the relationships among variables. The findings indicated that effective CRM factors significantly enhanced customer retention. This study contributed to theory by integrating CRM, customer trust, and innovation into a unified framework. Managerially, it emphasizes the need for effective CRM strategies, trust-building initiatives, and innovation-driven business models to sustain customer relationships. The study suggests that policymakers should support innovation friendly environments to enhance customer loyalty in emerging markets. This study provides some limitations, implications and directions for future research.

Keywords: Customer Relationship Management (CRM), Customer Trust, Innovation Capacity, Customer Retention.

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