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What signifies success in e-CRM?

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Abstract:

Purpose ‐ This paper seeks to use the balanced scorecard approach to create a performance measurement tool for e-CRM implementations, distinguishing the criteria which signify higher levels of success in e-CRM for internet businesses. Design/methodology/approach ‐ A performance measurement tool assessing the success of e-CRM implementations under the customer, internal business, innovation and learning, and financial perspectives of the balanced scorecard is constructed. A total of 72 internet businesses in Turkey were surveyed about how much their CRM implementations contributed to the improvement in various measures under these four perspectives. These businesses are categorised as those with high versus moderate levels of perceived e-CRM success. T-tests are conducted to find out which success criteria distinguish these two groups more significantly. Findings ‐ Companies with higher levels of perceived e-CRM success claimed significantly higher levels of improvements in customer satisfaction, transaction amounts and frequency, brand image, effective database management and customer targeting, efficient business processes, technology utilisation, excellence and innovation in services, improved sales, profitability and decreased service support costs. Research limitations/implications ‐ The sample size is relatively small due to the difficulty of collecting data from internet businesses on a strategic issue such as e-CRM. Perceived e-CRM success is assessed based on the answers of a single respondent from each business. Practical implications ‐ With successful e-CRM programs, internet businesses can experience significant levels of improvements under all the four perspectives of the balanced scorecard, including tangible measures such as financial outcomes and the less tangible indicators such as customer value, innovation, excellence, and efficiency in business processes. Originality/value ‐ A general strategic management tool is applied to a specific process in internet businesses. Performance in e-CRM is assessed extensively.

Keywords: Balanced scorecard; Customer relations; Internet

Document Type: Research Article

DOI: http://dx.doi.org/10.1108/02634500910945011

Publication date: March 27, 2009

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