Abstract
Organisations such as banks and short-term insurance organisations become more aware of the
importance of customer relationship management (CRM) and its potential to help them acquire new
customers, retain existing ones and maximise their lifetime value. A close relationship with customers
will require a strong coordination between information technology (IT) and marketing departments to
provide a long-term retention of selected customers. The primary objective of this study is to
investigate the influence of selected independent variables, two-way communication and conflict
handling on intentional customer loyalty via CRM as the intervening variable at a South African shortterm
insurance organisation. Primary data were gathered using a questionnaire, with items referring to
CRM, customer loyalty, two-way communication and conflict handling. The sample consisted of 254
customers in four major centres in South Africa. Data were factor-analysed. One independent variable,
conflict handling exerted a statistically significant positive influence on the intervening variable (CRM),
while two-way communication exerted a statistically significant negative influence on the intervening
variable (CRM). The intervening variable (CRM) positively influenced the dependent variable (Customer
Loyalty). If short-term insurance organisations communicate timeously and accurately, and are skilled
in conflict handling, greater loyalty will be created among customers.