Since the late 1990s CRM has become a buzzword
especially among business practitioners and consultants.
Companies have invested or are planning to invest huge
amounts to implement CRM strategies, tools and
infrastructure in order to attract and retain profitable
customers in today’s increasingly competitive markets.
However, the existing academic literature and the practical
applications of CRM do not provide definite guidance how
to assess the profitability of CRM projects. What is also
missing is a comprehensive measurement system that
allows a holistic assessment of the ongoing contribution of
CRM initiatives to the financial performance of the
business firm. The purpose of this paper is to develop a
framework for a systematic cost-benefit-assessment and for
ongoing performance monitoring of CRM initiatives. Based
on well-known methods and instruments for measuring
business performance the authors propose an integrated
approach to determine and measure the effectiveness and
efficiency of CRM projects.