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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

Evaluation of Customer Relationship Management – System Success

Merkur Day – 17.10.2003

Dr. Christoph Auer (MSc, PhD)

content of the presentation
Content of the Presentation
  • Initial Starting Point
  • Research Questions
  • Research Model and Method
  • Results
initial starting point
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
research questions

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

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2. Measurement approach

?

?

3. Describe the management framework

?

?

research phases
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

empirical research approaches
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
results
Results

2 actors  2 different success perspectives

Perspective ofthe provider

IS-Success

MIS

Marketing

Service Quality

Perspective ofthe user

results1
Results

CRM Performance Model (CPM, based on DeLone/McLean, 1992):

A model for describing/measuring the success of CRM

empirical results example
Empirical Results (Example)

Satisfaction rate compared to number of contacts within the last two years

once

twice

more than twice

empirical results example1
Empirical Results (Example)

Regression analysis of the overall satisfaction rate

management framework
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?
crm success goals
CRM Success Goals
  • System Quality
  • Information Quality
  • Business Process Quality
  • Employee Satisfaction
  • External Factors
  • Service Quality
  • Individual Outcome
  • Organizational Outcome
instruments for crm success management
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)
organizational issues
Organizational Issues

Responsibility:

  • External or self-controlling
  • Other issues

Time frame:

thank you for your attention
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:[email protected]

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