Understanding Customer Retention through Customer Relationship Management (CRM): A Quantitative Study of Grocery Retail Stores in Cotabato Province, Philippines

This study examined the relationship between Customer Relationship Management (CRM) and customer retention among selected grocery stores in Cotabato Province. Specifically, the study assessed the level of CRM in terms of knowledge management, CRM-organizing, CRM-based technology, and key customer focus, as well as customer retention in terms of repeat purchase, non-complaining behavior, and positive word of mouth. The study was conducted to address the limited empirical evidence on CRM practices and customer retention in localized grocery retail settings in the Philippines. A quantitative descriptive-correlational research design was utilized. Data were collected from 100 grocery store customers with loyalty cards using convenience sampling due to the limited number of grocery stores in the locality implementing CRM and loyalty card systems. A structured questionnaire adapted from existing instruments was used to gather the data. Descriptive statistics such as mean and standard deviation were employed to determine the levels of CRM and customer retention. At the same time, Spearman’s Rho was used to examine the relationship between the variables. Findings revealed that Customer Relationship Management was rated very high overall (M = 4.26, SD = 0.74), with CRM-organizing obtaining the highest mean score (M = 4.29, SD = 0.72). Customer retention was rated high overall (M = 4.12, SD = 0.84), with non-complaining behavior receiving the highest rating (M = 4.19, SD = 0.89), while positive word of mouth obtained the lowest mean score (M = 4.07, SD = 0.78). Moreover, the study found a strong positive and statistically significant relationship between CRM and customer retention (r = 0.726, p < .001), indicating that improved CRM practices are associated with higher customer retention. The study concludes that effective CRM practices play a significant role in strengthening customer retention among grocery stores. However, the findings should be interpreted cautiously due to limitations related to convenience sampling, the relatively small sample size, and the study’s focus on a single geographic area, which may limit the generalizability of the results. The study recommends strengthening knowledge management practices, customer engagement initiatives, and CRM-based technologies to further improve customer loyalty and advocacy.