Customer Relationship Management- A Strategic Approach Abstract

Customer Relationship Management (CRM) held out a lot of promise in the mid-1990s,
but a considerable number of failures caused concern about its usefulness. Though various
researchers have analyzed CRM critically, a comprehensive framework for enabling a better
approach to CRM is lacking. This paper presents the findings of various researchers and also
provides the information about how this paper contributes to the purpose of CRM. This paper
delves into the various critical aspects of CRM beginning with the `CRM Vision’ and then going
into the `CRM Goals’ and the `CRM Implementation’ process. It analyzes the findings of other
researchers and supports the arguments using examples of successful CRM implementations and
presents a framework that can be used for a more strategic approach to it.

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Customer Relationship Management
Introduction
Customer Relationship Management (CRM) systems gained popularity in the late 1990s
and into the new millennium, but its sales waned in the wake of increasing reports of companies
failing to reap the rewards that had been envisaged. This led observers to comment that CRM
was another overhyped IT investment much like Enterprise Resource Planning (ERP) (Rigby and
Ledingham, 2004, p. 118).
Researches into CRM point out that 60-80 percent of CRM projects end in failure (Kale,
2004, p. 42). Consulting firms have also undertaken research into this aspect and mentioned that
nearly 70 percent of CRM implementations have failed to deliver as promised.
Despite the failures, CRM is regarded as an important tool for “delivering revenue
growth through improved customer experiences, retaining and growing existing customer bases,
increasing customer acquisition rates and influencing the development of new product and
services” (IBM’s Global CRM Study, 2005, p. 12). It has been mentioned that the success rate of
CRM can be increased from 15 percent to 70 percent, if a proper CRM strategy is adopted and
CRM is `done right’ (Greenberg, 2001, p. 86). This paper delves into the critical issues
concerning CRM and proposes a framework that can be used for undertaking a strategic
approach to it. It is expected that the success rate of CRM can be enhanced using a strategic
approach