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

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 childrenʹs 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.