EVALUATING THE LONG-TERM BENEFIT OF CRM-SYSTEMS: A COST-ORIENTED APPROACH

Gernot Moedritscher and Werner Mussnig
Additional contact information
Gernot Moedritscher: Department of Business Administration and Economics, University of Klagenfurt, Universitaetsstrasse 65-67, 9020 Klagenfurt, Austria
Werner Mussnig: Department of Business Administration and Economics, University of Klagenfurt, Universitaetsstrasse 65-67, 9020 Klagenfurt, Austria

International Journal of Innovation and Technology Management (IJITM), 2005, vol. 02, issue 04, 367-389

Abstract: Since the late 1990sCustomer Relationship Management(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 win the battle in the increasingly competitive economy. However, many executives are struggling to determine how their enterprises will balance the business value of CRM against its costs to determine CRM return on investment. Our model presented in this paper allows an adequate feasible, theoretically established prospective evaluation for the contribution of a CRM-investment to the value of the firm under cost aspects. The premise for the application of this model is that strategic concepts, a fully developed cost accounting system as well as information on the part of the market are available. However, at the present in companies it is still not common to use such integrated and dynamic models. But an essential barrier of the implementation is the mindset of the management, which is stamped by conventions like e.g. orientation on financial statements or pursuit of partial orientation.

Keywords: Customer lifetime value; customer relationship management; dynamic evaluation (search for similar items in EconPapers)
Date: 2005
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219877005000599
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijitmx:v:02:y:2005:i:04:n:s0219877005000599

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219877005000599

Access Statistics for this article

International Journal of Innovation and Technology Management (IJITM) is currently edited by H K Tang

More articles in International Journal of Innovation and Technology Management (IJITM) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().