Influence of Electronic Customer Relationship Management Strategy on Performance of Small and Medium Enterprises in Kenya

Despite the high cost of electronic customer relationship software solutions, its use can be justified as an investment in building long-term client relationships, improving customer retention, and, ultimately, boosting long-term profitability. As a result, it is critical for small- and medium-sized firms (SMEs) in Kenya to take a forward-thinking attitude and maintain their market survival by adapting to developing trends in customer relationship management. This is because the modern business setting has become exceedingly dynamic, necessitating small and medium enterprises to formulate strategies that align with the rapid evolution of technology, shifting customer demands, and intensified global competition to improve their performance. The findings indicate SMEs in Kenya are increasingly implementing relatively uncomplicated information and communication technologies to enhance their capabilities in customer communication and information management. This strategic move is aimed at gaining a competitive edge by leveraging electronic customer relationship management practices. Small- and medium-sized enterprises perceive the communication component of electronic customer relationship management as more manageable, yet encounter challenges in effectively incorporating client information into their decision-making processes. Overall, it can be observed that electronic customer relationship management implementation in SMEs is often characterized by an ad hoc approach rather than a strategic one. SMEs need to align electronic customer relationship initiatives with the overall strategic goals to enhance their overall performance.