Research Article
An Empirical Study on CRM Evaluation and Improvement from the Customer Perspective
1 Sogang University
Published: January 2005 · Vol. 34, No. 2 · pp. 423-444
Full Text
Abstract
.This research addresses customer’s cognition of enterprise CRM(customer relationship management) activities. Most of companies adopt CRM solution expecting revenue generation by encouraging customers’ repurchasing, while customers accept companies’ individual contact expecting some benefit from those. Previous studies highlighted that many business organizations had difficulties yet to meet their goal of CRM due to lack of internal strategies. Moreover, the researches were focused mostly on company‘s point of view, not on customer’s. Unlike previous CRM studies, this paper made the assumption that CRM dissatisfiers might have greater influence on corporate performance than CRM satisfiers, and emphasized the importance of appropriateness of CRM frequency and of dissimilarity of its contents from the perspective of customers. By sampling consumers predicted to be major targets of corporate CRM and observing what perceptions and attitudes they had toward CRM, the study sought ways to improve its execution techniques from the customer’s point of view, and to ensure that the results could be reflected in corporate strategies, thereby eventually contributing to improving companies’ CRM performance. Through a pre-studies, key corporate CRM concepts were extracted, and based on those, constructs and items were selected for analysis, and were reflected in the final selection of samples for the study. By applying the “expectation/performance disconfirmation” concept proposed by Oliver(1980) and thus adopting the two paths of “when they are satisfied with CRM” and “when they are not,” a structural equation model was applied and analyzed based on each cause of satisfaction and dissatisfaction according to the “two-factor theory” proposed by Herzberg(1959) first. In addition, the study’s identification of responses from major CRM samples revealed many significant points, which were compiled in the descriptive statistics so that they could be utilized in the future to improve companies’ CRM strategies. Consequently, the study’s results revealed that core CRM sample groups encountered undifferentiated information while being excessively exposed to one-on-one communication with companies. This had an impact on customer attitudes and behavior by making customers uncomfortable and resistant to contact with companies through CRM. While they currently displayed a negative attitude regarding company’s one-on-one communication with customers, they recognized the need for CRM for customer satisfaction in the future, and so hoped CRM would be improved. Which elements of CRM influenced customer satisfaction or dissatisfaction and the specific problems and improvements were dealt with in the main body of the study. This paper found the reason why company’s expectation does not fit with customer’s, and suggested the way to reduce mutual gap of expectation for successful CRM.
