Effect of Customer Relationship Management (CRM) Capability on Perceived Sales Performance (PSP) in B2B Market: A Study from India Context

DOI: https://doie.org/10.10399/APER.2025492375

Authors:

Sandeep Tyagi , Dr. Satendar Singh

Keywords:

Customer Relationship Management, Sales Performance, B2B Market, CRM Capabilities, Customer Regain.

Abstract:

This study examines how Perceived Sales Performance (PSP) in the Business-to-Business (B2B) sector in India is impacted by Customer Relationship Management (CRM) capabilities.  Even though CRM has been a key tactic for enhancing corporate performance since 2011, little is known about how particular CRM features affect sales success in business-to-business (B2B) contexts, especially in the Indian market. The study examines four key CRM capabilities: Customer Acquisition Capability (CAC), Upselling (UP), Customer Regain (CRG), and Referral (RR) to determine their influence on sales performance. Using a survey approach, data was collected from 393 B2B sales professionals across India through convenience and snowball sampling. The questionnaire was designed using established scales from previous literature and measured on a 5-point Likert scale. Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed for data analysis using WarpPLS 7.0 software. Results indicate that CRM capabilities positively impact perceived sales performance in B2B markets. Specifically, Customer Acquisition Capability (CAC) and Customer Regain (CRG) significantly influence Perceived Sales Performance (PSP)  while Upselling (UP) and Referral (RR) capabilities showed weaker relationships. The model explained 62% of the variance in perceived sales performance. This research contributes theoretically by validating the importance of specific CRM capabilities in B2B sales contexts and offers practical implications for managers to prioritize data quality, integration, and top management support when implementing CRM. Limitations include the cross-sectional nature of the study and potential regional bias. Future research could explore additional mediating factors such as business strategy, innovation, and marketing capabilities.

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