Measuring, managing and improving the performance of CRM

Abstract

Customer relationship management (CRM) has largely escaped systematic measurement, and as a result its ability to deliver profitable performance is often regarded sceptically and under-supported by senior management. This paper describes a unique framework for assessing the effectiveness of performance management in the CRM area. It enables both marketers and senior executives involved in aspects of customer management to evaluate how effective they are managing and improving the performance of their CRM. The framework is driven by a cause-and-effect model (the Drivers of Customer Performance) and a performance management framework (the Virtuous Circle).