CRM in Technology Companies: Process, Technology and Measurement

Abstract

Customer Relationship Management (CRM) is a management approach that aims to create, develop, and enhance relationships with strategically targeted customers. CRM is utilized in order to maximize customer value, corporate profitability, and thus, shareholder value. From a strategic viewpoint, CRM is not merely an IT-Solution. CRM involves a synthesis of strategic vision: A corporate understanding of the nature of customer, the utilization of the appropriate CRM applications and information management as well as high- quality operations and service.

This study reviews the different CRM frameworks and definitions and presents critical factors of CRM metrics and success in the light of current literature. After literature review, a new framework for CRM is introduced and discussed. In the empirical part of the study, CRM is studied from two different point-of- views: CRM consultants and major Finnish technology companies using CRM.

The use of CRM in the case companies is still mostly at an operative level and the greater strategic advantages have not yet been achieved in a larger scale. The companies are still struggling with integrating and unifying their customer information, but the visions in a longer term match the model of a more strategic and holistic CRM.