MECHANISMS BY WHICH AI-ENABLED CRM SYSTEMS INFLUENCE CUSTOMER RETENTION AND OVERALL BUSINESS PERFORMANCE: A SYSTEMATIC LITERATURE REVIEW OF EMPIRICAL FINDINGS

Abstract

This systematic literature review investigates how Artificial Intelligence (AI)-enabled Customer Relationship Management (CRM) systems influence customer retention and overall business performance. With increasing digital transformation across industries, AI-powered CRM solutions such as predictive analytics, natural language processing, and intelligent automation are reshaping customer engagement and strategic decision-making. The mechanisms through which AI-enabled CRM systems operate draw on theoretical frameworks spanning information systems, marketing, strategic management, and behavioral sciences. Key among these is the Resource-Based View (RBV), which posits that unique and inimitable IT capabilities—such as AI-integrated CRM systems—can be leveraged for competitive advantage and superior firm performance. This study synthesizes empirical evidence to explore the mechanisms through which these systems contribute to sustained customer loyalty and competitive business outcomes.Adopting PRISMA 2020 guidelines, this review systematically analyzed peer-reviewed empirical studies published between 2013 and 2023. Academic databases including Scopus, Web of Science, IEEE Xplore, and ScienceDirect were searched using keywords such as "AI in CRM," "customer retention," "business performance," "predictive analytics," and "intelligent customer engagement." After applying inclusion and exclusion criteria, 72 articles were selected for final analysis.The review identified five primary mechanisms through which AI-enabled CRM systems impact customer retention and business performance: (1) personalized customer experience through behavioral analytics, (2) real-time decision-making via predictive models, (3) enhanced service efficiency with AI chatbots and automation, (4) improved customer segmentation and targeting, and (5) proactive churn management strategies. Empirical findings consistently demonstrated a positive correlation between AI-CRM adoption and customer satisfaction, lifetime value, and business profitability.