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Evaluation of Customer Relationship Management – System Success

Evaluation of Customer Relationship Management – System Success. Merkur Day – 17.10.2003 Dr. Christoph Auer (MSc, PhD). Content of the Presentation. Initial Starting Point Research Questions Research Model and Method Results. Initial Starting Point.

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Evaluation of Customer Relationship Management – System Success

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  1. Evaluation of Customer Relationship Management – System Success Merkur Day – 17.10.2003 Dr. Christoph Auer (MSc, PhD)

  2. Content of the Presentation • Initial Starting Point • Research Questions • Research Model and Method • Results

  3. Initial Starting Point • After the e-Business- „Hype“ came the CRM „Hype“ (CRM = Customer Relationship Management) • But in 86% of the CRM projects the results are not considered as satisfactory (with regard to the initial expectations) (Forrester Research, 2003) • IT-Spending 2002: (Forrester Research, 2003) • USA $ 866 Bill. • Europe € 648 Bill. •  But what value for the businesses is generated? • When measuring the CRM-success there are 2 main problems: • The System is at the interaction point between businesses and their customers • The involvement of many intangible measures

  4. X Z Y R W Research Questions 1. Which criteria is influencing the outcome (success/failure) of CRM initiatives? 2. How can the values of these criteria be fully and regularly measured? 3. Which management framework must be established to influence the success criteria in a positive way? Framework Objectives: CRM Success(Outcome) ? 1. Identify the construct €#.### or ##% 2. Measurement approach ? ? 3. Describe the management framework ? ?

  5. The Research Project

  6. Research Phases Research Instruments Research Phase Content Phase 1: Selecting a topic Literature research Defining the objectives Document analysis(scientific literature) Phase 2: Analysis Focused literature research State of the art e-Services Quest. e-Business manager Document analysisExpert interviews Phase 3: Developing andverifying a model Hypothesis model Customer survey Questioning of employees Customer survey Expert interviews Phase 4: Write up the dissertation Data analysis Verification of hypothesis Adaptation of the model

  7. Empirical Research Approaches Research Instrument Details Document analysis(scientific literature) • Over 660 Sources were consindered • Attendance at 5 academic conferences in the field Document analysis Expert interviews • Analysis and grouping of 398 empirical studies about the success measurement of information systems • Analysis of 499 web-sites which offer e-Services • Half-standardised questioning of nine e-Business managers about the current situation of CRM successmanagement in different countries. Customer survey Analysis of secondarydata Expert interviews • Standardised written and telephonic Interviews (86 items)with customer of an energy provider(w: 200 (RR:20,5%), t: 563 (AR:44,23%)  n=290) • Analysis of relevant data which was stored in the CRM system (n=282) • Standardised written and telephonic Interviews ofemployees

  8. Results 2 actors  2 different success perspectives Perspective ofthe provider IS-Success MIS Marketing Service Quality Perspective ofthe user

  9. Results CRM Performance Model (CPM, based on DeLone/McLean, 1992): A model for describing/measuring the success of CRM

  10. Hypothesis Model

  11. Empirical Results (Example) Satisfaction rate compared to number of contacts within the last two years once twice more than twice

  12. Empirical Results (Example) Regression analysis of the overall satisfaction rate

  13. Structural Equation Model (AMOS)

  14. Management Framework • Success measures for CRM • Which company-specific criteria influences my CRM success? • What do I need to measure? • Instruments to monitor and manage CRM success • How can the relevant criteria be measured? • Organizational issues • At which time needs what to be done by whom? • Which organizational structure is necessary?

  15. CRM Success Goals • System Quality • Information Quality • Business Process Quality • Employee Satisfaction • External Factors • Service Quality • Individual Outcome • Organizational Outcome

  16. Instruments for CRM Success Management • Adaptation of existing instruments: • Customer-orientated process cost calculation • Customer Lifetime Value • Using success measures based on causal modelling (LISREL) • Newly developed instrument: • CRM Performance Card (CPC)

  17. Organizational Issues Responsibility: • External or self-controlling • Other issues Time frame:

  18. CRM Performance Card

  19. Thank you for your attention ... any questions? christoph auer, dr. dipl.-ing. key account manager evolaris Competence Center Hugo-wolf-gasse 8-8a, a-8010 graz Phone: +43 316-35 11 11-104 Mobile: +43 699 13 22 85 27 mail:christoph.auer@evolaris.net www.evolaris.net

  20. Industrielle Kompetenzzentren und Netzwerke E I N P R O G R A M M D E S B M W A evolaris privatstiftung www.evolaris.net

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