The impact of customer relationship management through implementation of information systems

Abstract

CRM has been widely regarded as a company activity related to developing and retaining customers through increased satisfaction and loyalty. IT-based CRM systems have been applied in many industry sectors. CRM provides analytical, operational, and direction capabilities: the analytical capabilities enhance profitability maximisation from the customer relationship, operational capabilities cut across the customer value process, and direction capabilities depend on strategic skills and reflect the sharpness of long-term cooperation and organisational values. The research goal was to determine how a customer-oriented firm uses information systems to affect CRM profitability. In this article, we formulate the CRM profitability model by relationship marketing from a system efficiency perspective, and in total we mailed 552 survey questionnaires to 58 international hotels in Taiwan, and 235 survey questionnaires were collected. Using structural equation modelling analysis, the research findings suggest that customer relationship management profitability is not only dependent on the quality of information systems but also on service orientation and service processes.

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