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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 Success

  • Initial Starting Point

  • Research Questions

  • Research Model and Method

  • Results


Initial starting point
Initial Starting Point Success

  • 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 Success

    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

    ?

    ?



    Research phases
    Research Phases Success

    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 Success

    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 Success

    2 actors  2 different success perspectives

    Perspective ofthe provider

    IS-Success

    MIS

    Marketing

    Service Quality

    Perspective ofthe user


    Results1
    Results Success

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

    A model for describing/measuring the success of CRM



    Empirical results example
    Empirical Results (Example) Success

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

    once

    twice

    more than twice


    Empirical results example1
    Empirical Results (Example) Success

    Regression analysis of the overall satisfaction rate



    Management framework
    Management Framework Success

    • 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 Success

    • 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 Success

    • 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 Success

    Responsibility:

    • External or self-controlling

    • Other issues

    Time frame:



    Thank you for your attention
    Thank you for your attention Success

    ... 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]

    www.evolaris.net


    Evolaris privatstiftung

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