Customer Relationship Management Programs and Their Impact on the Financial Performance of Businesses: A Proposed Model

Massey University Commerce Working Paper No. 03.05

18 Pages Posted: 6 Apr 2004

See all articles by Adam Lindgreen

Adam Lindgreen

Eindhoven University of Technology (TUE) - Department of Accounting, Finance & Marketing Technical

Gurvinder Singh Shergill

Massey University - Department of Commerce

Date Written: May 2003

Abstract

Over the past decades, it has been argued that businesses across all sectors should move toward interactions, relationships, and networks. Such a marketing approach is very different from the more traditional one of marketing through the 4Ps (i.e., product, price, place, and promotion). The customer relationship market is among many different markets a firm needs to consider with research suggesting that customer retention leads to increased market share and bigger profits. Although some practical guidelines have appeared on how to design and implement customer relationship management programs, there are few articles discussing the financial impact of such programs on companies. This paper addresses the problem by discussing a conceptual framework that allows for a financial evaluation of programs in areas that are relevant to customer relationship management.

Keywords: Customer Relationship Management (CRM), financial performance, CRM measurement scale development

Suggested Citation

Lindgreen, Adam and Shergill, Gurvinder Singh, Customer Relationship Management Programs and Their Impact on the Financial Performance of Businesses: A Proposed Model (May 2003). Massey University Commerce Working Paper No. 03.05. Available at SSRN: https://ssrn.com/abstract=519202 or http://dx.doi.org/10.2139/ssrn.519202

Adam Lindgreen (Contact Author)

Eindhoven University of Technology (TUE) - Department of Accounting, Finance & Marketing Technical ( email )

Den Dolech 2
Paviljoen J. 11
5600 MB Eindhoven
Netherlands

Gurvinder Singh Shergill

Massey University - Department of Commerce ( email )

Auckland
New Zealand

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