Relationship marketing nowadays has emerged as the core marketing activity for businesses whether small or big which are operating in fiercely competitive environments. On average, businesses spend six times more to acquire customers than they do to keep them. Therefore, many firms are now paying more attention to their relationships with existing customers to retain them and increase their share of customer’s purchases. The world has come full circle from selling to marketing and from seller`s Market to Buyer`s Market. During the last two decades, the emphasis has shifted from ‘Production’ to ‘Business Realisation’.  Today, the customer has the option to buy what he thinks he should and from whom, which he thinks is in his best interest. There exists a prime importance of maintaining long term relations with the customers even in the Small Scale Industries.

This research paper is an empirical case study which focuses on the aspect of Customer Relationship Management (CRM) in the Small Scale Enterprises. Primary data for the present study was obtained from original sources by the researcher himself. This study is an ex-post facto research which is descriptive in nature and sample size for the study was 140 respondents who are either owner/entrepreneur/partner or management cadre employees of small scale industries from Nanded. Primary data collection was done with the help of Structured Questionnaire and Secondary data was collected through books, journals and websites. To analyze the collected data, statistical tools such as Simple Percentage Analysis, Standard Deviation and Chi – Square Analysis were applied.

From the analysis, the researcher has found that the practices of CRM in the small scale industries of Nanded district are satisfactory and also study reveals that CRM has a certain impact on the profitability of the company. However, there is a much scope for the improvement in the CRM practices of the small scale industries. A list of conclusions & suggestions is provided for this purpose.