Please use this identifier to cite or link to this item:
Title: Determining optimal CRM implementation strategies
Authors: Kim, S.H. 
Mukhopadhyay, T.
Keywords: Complementarity
Consumer surplus
CRM costs
Customer relationship management
Economics of IS
IT investments
Issue Date: 2011
Citation: Kim, S.H., Mukhopadhyay, T. (2011). Determining optimal CRM implementation strategies. Information Systems Research 22 (3) : 624-639. ScholarBank@NUS Repository.
Abstract: Although companies have spent a great deal of money to adopt CRM (customer relationship management) Atechnologies, many have not seen satisfactory returns on their CRM implementations. We study optimal CRM implementation strategies and the impact of CRM investments on profitability. For our analysis, we classify CRM technologies into two broad categories: targeting-related and support-related technologies. While targeting CRM improves the success rate of distinguishing between nonloyal and loyal customers, support CRM increases the probability of retaining the loyalty of existing customers. We also consider the costs of implementing each CRM type separately as well as both types simultaneously. We show that the optimal CRM implementation strategy depends on the initial mass of loyal customers and diseconomies of scale in simultaneous implementation. We also find that the two types of CRM technologies are substitutive rather than complementary in generating revenue. We discuss why it is difficult to avoid overinvestments in CRM when the nature of the investments is misunderstood. We study the optimal CRM implementation scope and the impact of different types of CRM on customers. We develop a model that not only considers both the revenue and costs sides but is also helpful in determining the deployment of right CRM technology in the right scope. © 2011 INFORMS.
Source Title: Information Systems Research
ISSN: 10477047
DOI: 10.1287/isre.1100.0309
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.


checked on Jul 29, 2021


checked on Jul 29, 2021

Page view(s)

checked on Jul 9, 2021

Google ScholarTM



Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.