The priority factor model for customer relationship management system success

Reporter ：林曉薇Date: 2006/12/05

Author： Tae Hyup Roh, Cheol Kyung Ahn, Ingoo Han

From ： Expert Systems with Applications 28 (2005) 641–654

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Outline

Introduction

Theoretical perspectives

Theoretical development and research model

Research methodology

Results

Discussion

Conclusions

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Introduction

Many firms have utilized the customer relationship management system for improved business intelligence, better decision making, enhanced customer relations, and good quality of services and product offerings.

The underpinning of the customer-oriented managing concept is that identification and satisfaction of customer needs lead to improved customer retention, which is based on corporate profitability.

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Introduction

Does CRM system lead to higher customer satisfaction and superior economic returns?

If so, which factors critically improve customer relationship and profitability?

The measurements of several dimensions of success factors have been used to assess IS success, such as process fit, customer information quality, and system support.

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Introduction

The research goals

Measure factors that influence intrinsic CRM success and extrinsic CRM success.

Identify the scales of these factors.

Test the relative importance of various factors.

Appropriate for use by academics and practitioners.

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Theoretical perspectives

DeLone and McLean (1992) formulated an IS success model using information and system quality to determine the effectiveness of an IS.

It postulates a scheme for classifying a multitude of IS success measure into six aspects: system quality, information quality, system use, individual impact, organizational impact, and user satisfaction.

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Theoretical perspectives

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Theoretical development and research model

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Research methodology

Data collection and sample characteristics

The 253 survey questionnaires were gathered from 14 organizations.

Target firms have been using the CRM system for about 2–5 years.

Among the 253 collected questionnaires, 234 cases were used for actual study.

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Research methodology

Scale development

We first conducted literature reviews on related topics and carried out a series of in-depth interviews with CRM project managers and CRM operators to examine the external validity of our research model.

This resulted in the identification of 30 potential research

items.

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Results 各構面信度

各問項信度收斂效度

區別效度

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Results

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Results 15 16

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Discussion

Managerial implications

If management wishes to improve the firm’s profitability, one logical way of achieving this is to employ CRM in different aspects of the business and enhance its internal efficiency in the CRM process.

Efforts to increase current customers’ satisfaction primarily affect future purchasing behavior, the greater portion of any profitability from improving customer satisfaction also will be realized in subsequent periods.

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Discussion

Managerial implications

Strong support from top management, effective CRM strategies, innovative organizational culture, excellent IT personnel, and other resources must also be available to help exploit the promised benefit of a CRM system.

Based on our test, customer information quality is one of the key factors to realize value from any CRM implementation.

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Discussion

Managerial implications

The insight to measure effectiveness, cut costs, reduce churn, understand relationships, anticipate trends, predict demand, optimize promotions, or segment the market must be used as a catalyst for action.

From a causal perspective, the structural equation analysis suggests that efficiency may be an antecedent to customer satisfaction, rather than a parallel, or direct determinant of profitability.

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Discussion

Study limitations and further research

Although this study reports meaningful implications toward the development of multidimensional measures of factors that influence CRM success, the validity of an instrument cannot be firmly established on the basis of a single study.

It is appropriate for CRM practitioners and academicians to interpret our findings as a guide model, rather than generalizing our measures in all industries.

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Discussion

Study limitations and further research

Initial instrument development efforts contain some ambiguity concerning the appropriate model for the underlying model framework.

Further research could also investigate the relative importance of the factors impacting each stage of the CRM process.

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Conclusions

We set out to investigate factors affecting the success of CRM implementation from three perspectives: efficiency literature in IS, customer satisfaction literature in marketing, and firms’ aggregated profitability.

A major conclusion of this study is that the three CRM initiatives, while not impacting profitability directly, could impact profitability via impacting efficiency and should not be ignored by those attempting to plan successful CRM systems.

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Thank you for your listening.