Strategic investments in the right CRM technologies, in the right amount, and in the right order

Seung Hyun Kim, Tridas Mukhopadhyay

Research output: Contribution to conferencePaper

1 Citation (Scopus)

Abstract

Although many companies have spent a great deal of money to adopt CRM (Customer Relationship Management) technologies, many have not seen satisfactory returns on their CRM installations. One of the reasons for such dissatisfaction and low ROI may be the lack of a comprehensive approach to evaluating the impact of CRM technologies, which are very different from traditional cost-cutting and quality-improving IT. To bridge the gap between the existing research stream on IT investment and firms' dissatisfaction with returns on CRM technologies, we aim to analyze the optimal CRM implementation strategy and the impact of CRM investments on a firm's profitability. For our analysis, we classify CRM technology into two broad categories, targeting-related CRM technology and support-related CRM technology. We find that the two types of CRM technologies are substitutive in generating firms' revenue rather than complementary. We also find that firms' investments in both targeting-related CRM and supportrelated CRM can decrease consumer welfare under certain conditions. We develop a model that not only considers different factors across industries and environments, but is also helpful in determining the right CRM technology, in the right amount, and in the right order.

Original languageEnglish
Pages1879-1906
Number of pages28
Publication statusPublished - 2006
Event27th International Conference on Information Systems, ICIS 2006 - Milwaukee, WI, United States
Duration: 2006 Dec 102006 Dec 13

Other

Other27th International Conference on Information Systems, ICIS 2006
CountryUnited States
CityMilwaukee, WI
Period06/12/1006/12/13

All Science Journal Classification (ASJC) codes

  • Information Systems

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    Kim, S. H., & Mukhopadhyay, T. (2006). Strategic investments in the right CRM technologies, in the right amount, and in the right order. 1879-1906. Paper presented at 27th International Conference on Information Systems, ICIS 2006, Milwaukee, WI, United States.