This paper examined the impact of customer relationship management (CRM) elements on customer satisfaction and loyalty. CRM is one of the critical strategies that can be employed by organizations to improve competitive advantage. Four critical CRM elements are measured in this study are behavior of the employees, quality of customer services, relationship development and interaction management. The study was performed at a departmental store in Tehran, Iran. The study employed quantitative approach and base on 300 respondents. Multiple regression analysis is used to examine the relationship of the variables. The finding shows that behavior of the employees is significantly relate and contribute to customer satisfaction and loyalty.

This paper analyzes the concept of Customer Relationship Management (CRM). The literature reviews strengthen the notion that the increase of customer loyalty can be achieved through positive impact of CRM strategy. In spite of the most essential advantages of CRM, there are some difficulties in CRM implementation for many organizations. Therefore, this study attempts to investigate and find out the key elements of CRM that can lead to the increase of customer satisfaction and loyalty. Base on the literature review, four identified critical CRM elements are employees’ behavior, quality of customer services, relationship development and interaction management.