Content area
Full Text
Keywords
Computer software, Consumer behaviour, Relationship marketing, Internet
Abstract
The application of technology to customer relationship management (CRM) initiatives (e-CRM) is one of the fastest growing technological developments. However, there is sufficient evidence to show that many CRM initiatives do not achieve the desired results. One of the reasons for this is the lack of clarity that surrounds the classification and selection considerations of CRM applications. Identifies and discusses key factors that need to be considered when electronic CRM solutions are to be implemented. Among other findings, proposes perspectives from which e-CRM implementation may be viewed in addition to identifying three integration dimensions applicable to e-CRM solutions. Concludes that, while e-CRM applications could enhance the delivery of a CRM strategy, such applications should be chosen carefully to fit in with organisational culture, process and legacy IT systems. The financial and human resource cost as well as the amount of time required for implementation of a CRM application should also be key factors in the selection of e-CRM applications.
Background
Customer relationship management (CRM) is one of the fastest growing management approaches being adopted across many organisations. Ovum (Bradshaw and Brash, 2001), an independent research and consulting company, define CRM as:
A management approach that enables organisations to identify, attract and increase retention of profitable customers, by managing relationships with them.
The implementation of CRM impacts on a number of functions within an organisation including sales, IT, operations, marketing and finance. Bradshaw and Brash also asserted that implementing CRM is certain to involve the deployment of new technologies. The deployment of such technologies gives an insight into the rate of growth of CRM applications (e-CRM). A study by AMR Research predicted that the CRM software market would be worth more than $16 billion by 2003 (Ness et al., 2001), while another study by IDC forecast that the world-wide market for CRM products and services would be worth $125 billion by 2004 (Winer, 2001).
However, the deployment of CRM applications has not always delivered the result that organisations expect. Earley (2002) noted that 75 to 85 per cent of CRM implementations fail. Bain's 2001 survey of management tools ranked CRM in the bottom three for satisfaction out of 25 popular management tools (Rigby et al.,...