A Review on the Effect of Organizational Change Management on Customer Loyalty
Keywords:
Organizational change, management, customer loyaltyAbstract
Aim: Many organizations undergo changes such as restructuring, mergers, and acquisitions, which can cause disruption to their customers. The primary aim of this study was to understand how these changes affect customer loyalty and how organizations can mitigate the negative effects of change on their customers.
Methods: This study employed a systematic approach, conducting a comprehensive search across academic databases such as Google Scholar, IEEE Xplore, and ProQuest, including journals and conference proceedings. Keywords such as organizational change, management, and customer loyalty were used to identify relevant studies. The inclusion criteria comprised empirical studies that examined the relationship between organizational change management and customer loyalty. The review excluded studies that do not directly address the research topic or are of low quality, such as opinion articles or non-peer-reviewed sources.
Results: The study found that organizational change management has a significant impact on customer loyalty. Customers who experience disruptions in their interactions with organizations during times of change are more likely to become disloyal. The study also found that organizations can mitigate the negative effects of change on customer loyalty by effectively communicating with their customers and providing them with a sense of stability and continuity during the change process.
Conclusion: The study concluded that organizations that fail to manage change effectively risk losing the loyalty of their customers, which can have a significant impact on their bottom line revenues.
Recommendation: Organizations should prioritize customer satisfaction and loyalty during times of change. This can be achieved by involving customers in the change process, communicating effectively with customers, and providing them with a sense of stability and continuity during the change process. Organizations should also invest in training and development programs to equip their employees with the necessary skills to manage changes effectively and maintain customer loyalty.
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