TAILIEUCHUNG - HOW TO MEASURE THE IMPACT OF A CRM STRATEGY ON THE FIRM PERFORMANCE

CRM strategy (Customer Relationship Management) is a business philosophy, stemming from Relationship Marketing that joins strategy and technology, with the aim of creating value for both customers and the company. In this paper we justify the interest of establishing a formal system to measure CRM performance. In order to do that, we first focus on the role of marketing performance measurement throughout the time. Then, we compare different frameworks and metrics used to measure performance in the CRM era. Finally, challenges to face in CRM performance measurement as well as some ideas for future research are discussed. | We can wonder if the popularity of non-financial measures from an academic point of view is accompanied by the same success from a managerial perspective. There are a few researchers who have analysed the extent to which financial and non-financial measures are used by practitioners. A recent study from Reinecke and Reibstein (2002) found that managers primarily rely on quantitative performance metrics such as sales, market coverage, margin, net profit, sales profitability, share of new customers, etc. but they increasingly include qualitative indicators such as customer satisfaction, customer retention or brand familiarity. These findings confirm the results of another research carried out by Ambler, Kokkinaki and Puntoni (2002) in the United Kingdom. This study shows that top management considers financial measures more important than any other category, so this kind of metrics are the most frequently collected. The indicators enjoying the major popularity among the top management are the following: profit/profitability; sales, value and/or volume; gross margin; awareness, market share (volume or value); number of new products; relative price (SOMValue/volume); number of consumer complaints (level of dissatisfaction); consumer satisfaction; distribution/availability; total number of customers; marketing spend; perceived quality/esteem; loyalty/retention; relative perceived quality.

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