CRM AND CUSTOMER LOYALTY INTEGRATION: DEVELOPING A CUSTOMER RETENTION AND KPI SYSTEM BASED ON RFM SEGMENTATION AND NPS

Abstract

This thesis addresses the problem of systematically managing customer retention and loyalty in small businesses. In practice, many small enterprises focus on attracting new customers, while the number of existing customers who return, those who are becoming less engaged, and the reasons for customer churn are not monitored through measurable indicators. Therefore, the thesis proposes an integrated model that combines CRM capabilities, RFM segmentation, NPS (Net Promoter Score) surveys, and a KPI system. The essence of the model is to segment customers based on their purchase history stored in the CRM system, including the time of their most recent purchase, purchase frequency, and purchase value, while NPS is used to determine each segment’s attitude toward the business, particularly their willingness to recommend it. Based on these two sources, KPIs are selected for customer retention, repeat purchases, referrals, and reactivation, while their calculation procedures and monitoring mechanisms are established. As a result, customer loyalty is transformed from a subjective perception into a measurable indicator: it becomes possible to clearly identify which segments are declining, which groups are accumulating dissatisfaction, and which customers should receive priority attention. The proposed approach contributes to strengthening competitiveness in small businesses by reducing customer churn, increasing repeat sales, and targeting marketing expenditures more effectively.