CRM software success: a proposed performance measurement scale

Abstract

Purpose – This article aims to seek to provide a performance measurement scale for customer relationship management (CRM) software. The CRM concept is wide, yet prior literature offers only specific approaches. This scale goes beyond specific scenarios, to cover the various perspectives on CRM and provide quantitative validation of the measures. Design/methodology/approach – This paper describes the complete process for conceptualizing and operationalizing this reflective second-order construct, including a thorough literature review, qualitative research and a quantitative study with 208 companies that have implemented CRM software. Findings – Three main, interconnected constructs emerge to measure CRM software performance: customer life cycle, firm performance and operational performance. Retention, loyalty and satisfaction indicators form the customer life-cycle dimension. Firm performance refers to market share, efficiency, product adaptation, and new product launch indicators. The operational dimension includes improvement in sales performance, marketing campaigns, customer service and analysis of customer information. Research limitations/implications – This scale guides every element involved in CRM software implementation, toward a common objective. Practical implications – The CRM scale supports CRM software industry players and firms that intend to implement CRM software. The three model constructs provide guidelines about which improvements should be noted with a CRM implementation. Social implications – This scale help the companies who intend to implement CRM software conduct their agreement with the other parts involved (consultants, software developers and the firm). Originality/value – This paper meets an identified need, namely, to provide a CRM software performance measurement scale. The huge, unique sample is exclusive and obtained from a dedicated CRM software developer.