Customer loyalty has been a major and unanimously acknowledged as a valuable asset in competitive markets. As a result, it becomes more important to give power to in loyalty panel particularly when the consumers faces very low switching or moving cost to other product or service because they are not locked in by a contract. It is also become important in competitive markets due to the availability of more lucrative and easily available options. The concept of customer loyalty has been around and present throughout in all parts/activities of numerous industries in the past decade. The development of loyalty includes building and supporting a relationship with a customer, which leads to the repetitive purchase of products or services over a given period of time. A loyal customer base also permits companies to offer their expertise and skills to other business matters. In order to understand what drives customer loyalty or how your business defines customer loyalty, we can look at the behavioral aspect of it. Customers can show their loyalty in a number of ways. They can prefer to stay with a firm, whether this persistence is distinct as a relationship or not, or they can increase the number of purchases, or they can do both. The purpose of this research is to link loyalty to the up-and-coming theories or as the key element, of effective CRM. Although some authors, have different views of each element of it and make a distinction between brand loyalty, store loyalty, salespeople loyalty, product and service loyalty, and so on, in this study the idea of loyalty will be considered as the combination of all these types. Various authors calculated the impact of CRM on customer loyalty, but have not made any distinction between different types of loyalty. They have simply specified that their concept of loyalty goes past the idea of industrial loyalty. As a result, the variable chosen to measure the effectiveness of CRM in this study is customer loyalty. Looking into the previous decade many firms refocused to adopt a customer focus view most often through a formal program of customer relationship management. The latest expansion in information technology has enabled the tool for marketing managers to create a new generation of CRM tactics. One such tactic that thousands of firms have measured and which many have adopted is to establish a customer loyalty program. If we look around, for example, we can see such programs/schemes run by many companies for example in US airlines and hotels, Japanese retailing, UK grocery stores, French banks, German car companies, US universities, Italian fashion stores, Australian telecommunications, Indian telecommunication- retail banks and in many other areas. The main objective of such schemes/programs is to tender financial and relationship rewards to customers. It is recognizable that the aims of customer loyalty programs, firstly it has been used as a tool to increase sales revenues by raising purchase/usage levels and/or increase the range of product bought from suppliers. Secondly, to build a closer bond between the brand and current customers and with the belief of maintaining their current customer base. Most of the companies fail to scale their loyalty program that is one of the reasons why programs become unprofitable while noticing an increase in the membership of customers. This is because loyalty programs of most companies are linked to spending or regularity of usage and not profitability. In absence of any clear differentiation or special value proposition, companies often throw away valuable marketing resources attempting to build loyalty that may or may not result in a profitable outcome” it is very essential because aligning the CRM technology to the company’s business processes and culture is just as significant as aligning the business processes to the strategy. One can succeed with implementing a smart CRM process by defining a customer-centric Strategy, using appropriate Metrics, ensuring organizations are Aligned with their objectives, Redesign work processes as needed, and using appropriate Technology tools as enablers. The most vital basis for strategy development, however, is a broad understanding of what drives customer loyalty and how strong those drivers are. The answers may lie in identifying some fundamental level problems common with the way customer loyalty is managed and interpreted by companies. For example, Customer loyalty is managed at the collective customer level with negligible or no differentiation across the entire customer base. Therefore, individual customer level differences such as (behavioral, demographic, psychographic, attitudinal, and so on) may get ignored. There is a feeble correlation between customer loyalty (behavioral loyalty) and profitability.