Implementing performance indicators in the CRM projects of a CRM software company How to measure the added value of introducing CRM to your company? Jelle Colijn S1749838 Change Management 15-Feb-17 This research paper is an overview of how to measure the added value of implementing SugarCRM to your company. Supervisor University of Twente: PROF. DR. M. Junger PROF. DR. C. Wilderom Supervisor CRM company: K. ter Beek E. Siebum
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Implementingperformance
indicatorsintheCRMprojects
ofaCRMsoftwarecompanyHowtomeasuretheaddedvalueofintroducingCRMtoyourcompany?
JelleColijn
S1749838
ChangeManagement
15-Feb-17
ThisresearchpaperisanoverviewofhowtomeasuretheaddedvalueofimplementingSugarCRM
toyourcompany.
SupervisorUniversityofTwente:PROF.DR.M.Junger
PROF.DR.C.Wilderom
SupervisorCRMcompany:K.terBeek
E.Siebum
i
AbstractThisthesisfocusesonaCRMcompany.Itenables,customers(clients)toimprovetheircustomervalueby
implementingSugarCRM(Sugar)intheclientsorganizations.Tocontinuetodeliverthehighestserviceas
possible,theCRMcompanyisevaluatingtheirimplementationprocessandwonderswhetheritis
necessarytoadjustthisprocess.Thefinalgoalofthisresearchistoimplementperformance
measurementintheimplementationprocessofCRMthatisbasedonhowclientsoftheCRMcompany
experiencetherelativesuccessofCRMsoftware.Inresponsetothegoaloftheresearchthemain
questionisformulatedas:Whatare,forclientsoftheCRMcompany,thecriticalindicatorsofthesuccess
ofaCRMproject,andhowcantheseperformancemeasuresbeputintoeffectduringtheimplementation
processoftheCRMcompany?
Nextarethemostimportantresultsdiscussedthatwereobtainedduringthethesis.Duringthe
interviews,globalindicatorswerementionedbytheintervieweestoaddressthesuccessofthe
implementation:customersatisfaction,financialpayments,abilitytomonitortheusers,and
predeterminedfeedbackmoments.Theseindicatorsareimportantforthisresearchbecausetheyfocus
onglobalfactorsoftheimplementation.Besidesglobalfactors,thereareproject-specificindicators
mentioned.Theproject-specificindicatorstomeasurethesuccessoftheCRMsoftwarewere:costs,
speedofthesoftware,predictability,userfriendliness,time,accessibilityofthesoftware,adjustability,
andreliability.
TheabovementionedresultsshouldbeimplementedinthestandardimplementationplanoftheCRM
company.ThestepsthatareessentialforthenewplanoftheCRMcompanyarediscussedaswell.This
processshouldstartwithapreliminaryinvestigationinwhichonemustmeasurethegoalsthatwere
mentionedbytheclient.Thelastimportantaspectofthenewplanarefeedbacksessionsduringand
aftertheimplementation.Theinterpretationofthefeedbacksessionsisprojectdependentandshould
bediscussedduringtheinitialdiscussion.
AMulti-CriteriaDecisionMakinganalysisisusedtoindicatewhichKeyPerformanceIndicators(KPIs)are
themostcriticalfortheCRMcompany.ThebestscoringKPIsare:Salesmanagement,Customerservice
management,Customerloyalty,andCustomersatisfaction.ThethreelowestscoringKPIs,accordingto
thefocusgroup,are:Customershareofwallet,Campaignmanagement,Performanceofapplied
resources.
OneofthemostsignificantfindingstoemergefromthisstudyisthattheCRMcompanyalreadyusedthe
mostimportantKPIsofCRMsoftwareintheirimplementationprocess.TheproblemisthattheseKPIsare
nottranslatedinactivemeasuressoitisunclearwhattheaddedvalueoftheCRMcompanyis.Whenall
KPIsareintroduced(andappropriatelymeasured)inthesoftwareandtheimplementationplan,theCRM
companycanincreasethevaluetheycreatefortheirclients.Thiswillresultinhappiercustomersand
maximalcustomizedfulfilmentoftheclients’needs.
ii
Summary
Introduction
ThisthesisfocusesonaCRMcompany.Theyenablecustomers(clients)toimprovetheircustomervalue
byimplementingSugarCRM(Sugar)intheclients’organizations.Tocontinuetodeliverthehighest
serviceaspossible,theCRMcompanyisevaluatingtheirimplementationprocessandwonderswhetherit
isnecessarytoadjustthisprocess.Atthismoment,theaddedvalueofimplementingSugarisknownat
theCRMcompany,butthisisnotyetexplicitlymeasured.Thefinalgoalofthisresearchistoimplement
performancemeasurementintheimplementationprocessofCRMthatisbasedonhowclientsoftheCRM
companyexperiencetherelativesuccessofCRMsoftware.Inresponsetothegoaloftheresearchthe
nextmainquestionisformulated:Whatare,forclientsoftheCRMcompany,thecriticalindicatorsofthe
successofaCRMproject,andhowcantheseperformancemeasuresbeputintoeffectduringthe
implementationprocessoftheCRMcompany?
Methodology
Thethesisdescribesstepbystep,fromgeneraltospecific,howtheresearchquestioncanbeanswered.It
startswithaliteraturereview.TheliteraturereviewshowsthatthetoppriorityofCRMistoimprovethe
customerrelationship.ThisispossiblebecauseCRMisintegratedinallthedifferentfieldsofactivitythat
arerelatedtotheclient.Whenimplemented,CRMresultsinthemaximalcustomizedfulfilmentofthe
clients’needs.However,theproblemwithCRMinitiativesisthatmorethanhalfofalltheCRMinitiatives
fail.ToindicateifaCRMimplementationhasfailed,oronthecontraryissuccessful,KPIscanbeused.
KPIsareasetofmeasurementsfocusingonthoseaspectsoforganizationalperformancethatarethe
mostcriticalforthefutureandcurrentsuccessoftheorganization.TooperationalizetheKPIs,
organisationscanmakeuseofPerformanceIndicators(PIs).ThePIsindicatewhatneedstobemeasured
toimprovetheperformanceofthefirm.AdisadvantageofPIsisthatitisimpossibletodescribePIsthat
aregeneralizableforeverycompany.Thisisbecauseeverycompanyproject,teamandindustryneed
differentperformanceindicators.
Toexecutethisresearch,desk-researchfollowedbyeleveninterviewswithemployeesoftheCRM
companywasconducted.Theresultsweredoublecheckedbyhavingthreeinterviewswithclientsofthe
CRMcompany.ThiswasdonetogaininsightinwhatthesuccessoftheimplementationofSugaris.The
resultsoftheseinterviewswereusedtooperationalizetheKPIsthatwerementionedintheliterature.To
determinewhichindicatorsaremostimportantfortheCRMcompany,theMulti-CriteriaDecisionMaking
(MCDM)analysiswasused.Thisresultedinanoverviewofindicatorsthatarebestsuitableformeasuring
theaddedvalueofSugar.
TheresultsfromtheMCDManalyseweretheinputforthecustomerneedssegmentationmodel.This
modelfocusesonaddingextravaluefortheclient.Thisisbecausetheneedsoftheclientaretheinputon
howtheimplementationisorganisedandmeasured.
iii
Results
Duringtheinterviews,globalindicatorswerementionedbytheintervieweestoaddressthesuccessof
theimplementation:customersatisfaction,financialpayments,abilitytomonitortheusers,and
predeterminedfeedbackmoments.Theseindicatorsareimportantforthisresearchbecausetheyare
globalfactorsthatarealwaysofinfluenceonthesuccessoftheproject.Theprojectspecificindicatorsto
measuretherelativesuccessoftheCRMsoftwareare:costs,speedofthesoftware,predictability,user
friendliness,time,accessibilityofthesoftware,adjustability,andreliability.
Byusinginterviewsandaliteraturereview,multipleKPIsandcorrespondingPIswerefoundtomeasure
thesuccessoftheCRMsoftware.Theseindicatorswerecollectedtocomeupwithanoverviewofallthe
indicatorsthatwereapplicabletotheCRMcompany.Thiscollectionisplacedinalibrary.Inconsultation
withtheclients,managersoftheCRMcompanycanselectindicatorsfromthislibrarytomeasurethe
project’ssuccess.
TheabovementionedresultsshouldbeimplementedinthestandardimplementationplanoftheCRM
company.ThestepsthatareessentialforthenewplanoftheCRMcompanywillbediscussednext.The
implementationprocessshouldstartwithapreliminaryinvestigation.Byusingthisapproach,itbecomes
clearwhatthecriticalpointsareatthestartoftheimplementation.Thenextstepistomeasurethegoals
thatwerementionedbytheclient.Todothis,KPIsandPIscanbeused.Abaselinemeasurementisused
todefinewhatthestartingpointofthemeasurementis.Thelastimportantaspectofthenewplanare
feedbacksessionsduringandaftertheimplementation.
Asmentionedearlier,theMCDManalysisisusedtoindicatewhichKPIsarethemostcriticalfortheCRM
company.ThebestscoringKPIsare:Salesmanagement,Customerservicemanagement,Customer
loyalty,andCustomersatisfaction.ThethreelowestscoringKPIsaccordingtothefocusgroupare:
Customershareofwallet,Campaignmanagement,Performanceofappliedresources.
Conclusion
OneofthemoresignificantfindingstoemergefromthisstudyisthattheCRMcompanyalreadyused
someoftheKPIsintheirimplementationplan.TheproblemisthattheseKPIsareatthismomentnot
measuringtheaddedvalueoftheCRMcompany.WhenallKPIsareintroduced(andappropriately
measured)inthesoftwareandtheimplementationplan,theCRMcompanycanincreasethevaluethey
createfortheircustomers.Thiswillresultinhappiercustomersandmaximalcustomizedfulfilmentofthe
clients’needs.
iv
Contents..................................................................................................................................................................
Abstract...................................................................................................................................................i
Summary................................................................................................................................................ii
Glossary..................................................................................................................................................6
1. Introduction...................................................................................................................................7
1.1 Background...........................................................................................................................7
1.2 Objectiveofthisresearch.....................................................................................................7
1.3 Researchquestions...............................................................................................................7
1.4 Reportstructure....................................................................................................................8
1.5 Deliverables..........................................................................................................................8
1.6 CustomerexperiencewiththeCRMcompanyandSugar....................................................9
2. Casestudy....................................................................................................................................11
2.1 Introduction........................................................................................................................11
2.2 WhatdoestheCRMcompanyoffer?..................................................................................11
2.3 ImplementationplanofCRM..............................................................................................12
3. TheoreticalframeworkCRM........................................................................................................13
3.1 Customerrelationshipmanagement..................................................................................13
3.2 KeyPerformanceIndicators................................................................................................15
3.3 KeyPerformanceIndicatorsofCRM...................................................................................16
4. Researchmethodology.................................................................................................................18
4.1 Researchdesign..................................................................................................................18
4.2 Datacollectiontechniques..................................................................................................19
4.3 AnalysisandDiagnoses.......................................................................................................21
4.4 Reliabilityandvalidity.........................................................................................................22
5. Results..........................................................................................................................................24
5.1 IndicatorsoftheCRMcompany..........................................................................................24
5.2 MCDManalysis...................................................................................................................26
5.3 Libraryoftheacquireddata................................................................................................28
5.4 Customersegmentationmodel..........................................................................................28
5.5 Planofaction......................................................................................................................30
6. Conclusion....................................................................................................................................34
7. Recommendations.......................................................................................................................36
Appendix1:MCDM..............................................................................................................................38
v
Appendix2:CRMsoftwaresuccessindicators.....................................................................................41
Appendix3:KPIsintheliterature.........................................................................................................42
Appendix4:Customersegmentation...................................................................................................43
Appendix5:LibrarytheCRMcompany................................................................................................44
Appendix6:Focusgroupscores...........................................................................................................48
Bibliography.........................................................................................................................................51
Glossary
Term Definition
KeyPerformance
indicators(KPIs)
Areasetofmeasurementsfocusingonthoseaspectsoforganizationalperformancethatarethe
mostcriticalforthefutureandcurrentsuccessoftheorganization.
Performance
indicators(PIs)
Indicateswhatneedstobedonetoimprovetheperformanceofthefirm.PIsgiveanindicationof
theperformanceofabusinessunit,ortheorganization.ItalsooperationalizestheKPIs.
Client CustomeroftheCRMcompany
Customer Customersoftheclients
CRM CustomerRelationshipManagement
Library OverviewoftheKPIs,PIsandcorrespondingsourcestomeasuretheaddedvalueoftheCRM
software.
Focusgroup Thefocusgroupisagroupofexpertsthatareselectedbasedontheirexperienceandfunctionat
theCRMcompany.
Touchpoints Anywayaconsumercaninteractwithabusiness,whetheritbeperson-to-person,through
awebsite,anapporanyformofcommunication.
Containerconcept AreindicatorsthatareessentialforCRMtofunctioncorrectlyataclient.Examplesare:forCRMto
functionthesoftwareneedstobereliable,userfriendlyandoperatesatdecentspeed.
TheCRMcompany ThisresearchisdoneatanCRMsoftwarecompany.Becausetheoutcomesofthisresearchcan
givetheircompetitorsanadvantagetheirnameisanonymised.
Table1:Glossaryofdefinitionsandabbreviations
7
1. Introduction
1.1 BackgroundTheCRMcompanyhelpsorganisationsbuildlonglastingclientrelationshipswiththesupportof
SugarCRMsoftware(‘Sugar’)intheclients’organizations.Inthepastyears,theCRMcompanyhas
grownrapidlyintermsoforganizationalsize,projects,andprocesses.Tocontinuetodeliverthe
highestserviceaspossible,theCRMcompanyisevaluatingtheirimplementationprocessand
wonderswhetheritneedsadjustments.Atpresent,theaddedvalueofimplementingSugaris
known,butthisisnotexplicitlymeasured(Beek4,2016).Toresearchwhattheexplicitaddedvalue
ofimplementingSugaris,agraduatestudenthasbeenhired.
1.2 ObjectiveofthisresearchTheobjectiveofthisresearchistointroduceperformancemeasurementintheprojectsoftheCRM
company.Theseperformancemeasurementsareclientandprojectdependent,buttheCRM
companyneedsagenericsolutionthatisapplicableforeveryclientassignmentoftheCRM
company.Otherrequirementforthisresearcharethatitneedstomeasuretheaddedvaluebyusing
theCRMsoftwareandthatitshouldbecomeapartoftheactualimplementationplan.Whenthe
solutionsfortheserequirementsareimplementedcorrectly,theclientwillberemindedatthestart
oftheprojectwhattheendresultsoftheprojectwillbe.Thiswillincreasetheawarenessofthe
clients,henceincreasetheneedforaCRMstrategy.Altogetherthisresultsinthefinalgoalofthis
research:toimplementperformancemeasurementintheimplementationprocessofCRMthatis
basedonhowclientsoftheCRMcompanyexperiencesuccessofCRMsoftware.
1.3 ResearchquestionsInresponsetothegoaloftheresearch,thenextmainquestionisformulated:
Whatare,forclientsoftheCRMcompany,thecriticalindicatorsofthesuccessofaCRMproject,
andhowcantheseperformancemeasuresbeputintoeffectduringtheimplementationprocessof
theCRMcompany?
Inadditiontothemainquestion,thenextsub-questionsareformulatedtoanswerthemain
question:
Sub-question1:WhatisinexistingliteratureknownaboutCRMandwhataretheoutcomesfor
firmsthatimplementCRMtotheircompany?
Sub-question2:HowcantheCRMcompanymeasuretheKPIsofCRMsoftware?
Sub-question3:HowcantheoutcomeofmeasuringKPIsofCRMbeimplementedinthestandard
implementationplanoftheCRMcompany?
8
1.4 ReportstructureThisstudyconsistsofsevenchapters.
• Inthefirstchapterthebackground,objectives,andtheresearchquestionsaredescribed.
• Thesecondchapterdescribesthecasestudyofthisresearch.Itgivesanoverviewofthe
servicestheCRMcompanyprovidestotheirclientsandwhatthetypicalimplementation
planoftheCRMcompanyis.
• Thethirdchapteranalysesthetheoreticalframeworkofthisresearch.Thedefinition,
processandoutcomesofCRMareexplained.Afterwards,theperformancemeasurements
ofCRMsoftwarearediscussed.Theoutputofthethirdchapterisanoverviewofthe
literaturebasisofthisresearch.
• Thefourthchapterisanoverviewoftheresearchmethodology.Thischapterexplainshow
theresearchwasconductedandwhatthereliabilityandvalidityofthisresearchis.
• Chapterfivedescribestheresultsofthispaper.Thischapterdiscusseswhatthebestand
worstscoringindicatorsaretomeasuretheprojectsuccessattheclient.Theoutputofthis
chapterisabetaoftheperformancemeasurementtoolthatiscarriedoutinthe
implementationplanoftheCRMcompany.
• Inchaptersix,asummaryoftheresultsofthepreviouschaptersaregiven.Afterwards,the
answertotheresearchquestionisdiscussed.
• Chaptersevenisthelastchapterwiththerecommendationsofthisresearch.
1.5 DeliverablesForthisresearchtobeasuccess,thefollowingdeliverablesareformulated.Thedeliverablesare
answeredduringthisresearchandcanbeusedbyotherpractitionerswhodealwithsimilar
challenges.
• ApproachhowtoformulateCRMgoalsandhowtomeasurethem.Thisdeliverableis
answeredinsub-questionone.
• Apilotandevaluationoftheapplicationapproach.Thisdeliverableisansweredinsub-
questiontwo.
• ProposalembeddingapproachbasedoncurrentmethodologyoftheCRMcompany.This
deliverableisansweredinsub-questionthree.
Toanswertheresearchquestions,theregulativecycleofVanStrien(1997)isusedasguidancein
thisthesis(Figure1).Thisregulativecyclefocusesondesigningasolutionbasedonthebusiness
problemathand.Thestructureisfurtherelaboratedinchapter4.
9
• TheinitialproblemoftheCRMcompanyistheinputoftheproblemdefinition.Thisproblem
definitionisthebasisofthemainresearchquestion,relatedsub-questionsand
servesastheguidelineforthisresearch.�
• Toanalysetheproblem,interviewswiththesupervisoroftheCRMcompany,desk
review,andinformaltalkswithemployeesoftheCRMcompanywereused.
Duringthefivemonthsofthismasterthesis:aliteraturereviewonCRMis
conductedalongsidewitheleveninterviewswithemployeesoftheCRMcompany.
Basedonthis,theproblemisdiagnosedprovidinganoverviewofthedifferent
indicatorsandsuggestionsforimprovingthestandardimplementationplanthat
theCRMcompanyhas.UsingtheMCDMmethod,theindicatorsareprioritized
basedoncriteriaderivedfromliteratureandthebusinesscontextoftheCRMcompany.
• Basedontheoutcomes,aplanofactionisdesignedtoimplementtheindicatorssothatthe
addedvalueofimplementingCRMsoftwarecanbemeasured.�
Thelasttwophasesoftheregulativecyclearenotusedbasedonthetimeandresourceconstraints
ofthisresearch.TheselasttwostepsshouldbeimplementedbytheCRMcompany.Anoverviewof
theactionsthatarecompletedinthisthesisarediscussedintable2.
Question Deliverable Goals RegulativecycleVanStrien
Sub-question1 Approachhowtoformulate
CRMgoals.
Overviewoftheliteraturebasisofthis
research.
Analyse
Sub-question2 Apilotandevaluationofthe
applicationapproach
CreateanoverviewofwhattheKPIsof
clientsareandhowtomeasurethem.
Diagnose
Sub-question3 Proposalembeddingapproach
basedoncurrentmethodology
oftheCRMcompany
Buildanewimplementationplanbased
ontheliteratureanddemandsofthe
CRMcompany.
Planofaction
Table2:Overviewgoalsandactionsthesisandwherethesewillbediscussed.
1.6 CustomerexperiencewiththeCRMcompanyandSugar
Atthestartof2016,agraduatestudentdidresearchontheclientexperienceattheCRMcompany.
Thegraduatestudentconductedeightinterviewswithclientstofindoutwhattheirexperiencewith
theCRMcompanyandSugarwas(Entjes,2016).Resultsoftheresearchareusedinthisresearchas
startingpointofthisresearch.
Positiveoutcomesoftheresearchwere:
• Clearimplementationplan
• Flexibilityofthesoftware
Figure1:RegulativecycleofvanStrien(1997).
10
TheinstructionsoftheImplementationplanareclearandthedifferentphasesareexplicit.Another
significantpositiveaspectfortheclientswastheflexibilityofthesoftware.Inthiscontext,flexibility
meansthesoftwareanditscomponentsareeasilyadjustable.
PointsofimprovementfortheCRMcompanywere:
• Progressupdatesduringimplementation
• Blueprintdocument
• Evaluationmoment
ClientsoftheCRMcompanyneedastatusupdateabouttheprogressoftheimplementation.During
theimplementationofSugar,clientsarenotawarewhatisleftofthebudget,hoursandother
issues.Toinformtheclientsabouttheprogress,aprogressreportcanbemade.Thisreportcanbea
daily,weeklyormonthlyreportbasedontheclientdemands.
Someclientsexperiencedmiscommunicationwiththeblueprintdocument.Somepointsof
improvement,thattheclientfoundimportant,werenotincludedintheinitialblueprintdocument.
Theclientsexperiencedthisasupselling.Thatiswhyitisimportantthattheclientinvolvedinthe
developmentplanoftheproject.
Thelastpointofimprovementaretheevaluationmoments.Itisofaddedvaluefortheclientsthat
thereisanevaluationmomentaftertheimplementation.Duringtheevaluationmoment,theresults
ofimplementingthesoftwarewillbediscussed.
11
2. Casestudy
2.1 Introduction.TheCRMcompanyisaCRMservicesupplier,anelitepartnerofSugarCRM,aGoldpartnerofIBM
MarketingCloud,andapartnerofDrupal.ThemissionoftheCRMcompanyistocreatehappy
clientsbybuildinglastingandprofitableclientrelationships.Thecompanywasfoundedin2007and
currentlyhasapproximately40employees.ByworkingtogetherwithSugarCRM,IBMMarketing
CloudandDrupal,theCRMcompanycanofferCRMandMarketingAutomationsolutions.Eventually
thiswillleadtohelpingclientsbuildlonglastingrelationshipsthataremorein-depthandprofitable
withtheircustomers(CRM3,2016).TounderstandhowtheCRMcompanyhelpstheirclients,the
standardimplementationplanisdiscussedinthischapter.
2.2 WhatdoestheCRMcompanyoffer?
SugarCRMSugaristhelargestsoftwaretoolforopensourceCustomerRelationshipManagement(CRM).The
companywasfoundedin2004andhasapproximately7000clients.Sugarisused,forexample,to
executemarketingprograms,growsales,andretaincustomerstocreatecustombusiness
applications.Atthismoment,acompanycanchooseoutofmultipleprogramsforCRM,butthe
advantageofSugaristhatitisanopensourceapplication.Whenafirmpurchasesthesourcecodes,
itisopenforthepurchasertocustomizeandbuildtheprogramtotheirownwishes.Therefore,this
softwareisapplicabletomanydifferentorganizationsandmarkets(Safaribooks,2016).
IBMMarketingcloudTheCRMcompanyworkstogetherwithIBMMarketingCloud.Thisisacloud-basedmarketing
solutionfore-mailmarketingandleadmanagement.Byusingthiscloud-basedsoftware,onecanget
aninsightinthestepsacustomertakestobuysomething.IBMMarketingcloudofferscustomer
datafromdifferentsources,analyticalinsight,andautomatestheprocess.IBMmarketingClouduses
realtimedatafromSugarsoftware(CRM1,2016).
DrupalDrupalisusedtobuildmorethanamilliondifferentwebsites.Itisanopensourcecontent
managementframeworkandcanbeusedtomanagewebsitesandweblogs.WithDrupal,onecan
builddifferentapplications,eachforadifferentpurpose.Examplesofapplicationsare:acorporate
website,fora,andresourcedirectories.ByusingSugarandDrupal,onecanbuildafullyintegrated
webexperiencefortheclients(CRM2,2016).
12
2.3 ImplementationplanofCRM
TheCRMcompanyusesthreedifferentoptionsforintroducingtheirCRMsoftware:‘Quickstart’,
‘Hybrid’andthe‘CRMplusproject’.Quickstartisthestandardapproachoftenweeksforaproject.
Hybridisthestandardconfigurationaddedwithasmallcustombuildpart.CRMPlusprojectsare
thebiggestprojectswithaconsiderableamountofcustombuildworkfortheirorganizationand
project(CRM4,2016).AccordingtotheCRMcompany,thebestwaytoimplementperformance
measuresisintheQuickstart,becauseitiseasiertoimplementinthestandardapproach(Beek,
2016).
QuickstartQuickstartconsistsofsevenphasesthatareimplementedinapproximatelytenweeks.Thetotal
implementationtimeoftheCRMsoftwareisaroundsixtoeightweeks.Beforethestartof
implementingthesoftware,detailsoftheplanningarediscussedwiththeclient.
• Thefirstphaseisthe‘kick-off’.Inthisphasethegoals,planningandtheprocessoftheCRM
softwarearediscussedwiththeclient.
• Thesecondphaseisthe‘SugarWorkshop’.Thisworkshopisforthekey-usersandproject
members.InthisworkshopthebasicknowledgeofSugarisdiscussed.Basedonthis
knowledgetheclientsshoulddefinetheirdemandsfortheproject.Theresultisthatthe
CRMcompanycanusesomeSugarmodulesthatareimportantfortheclientandsupport
theCRMprocess.
• Thethirdphaseisthe‘Blueprint’.Duringtheblueprintworkshop,theCRMprocessesare
discussedandprojectedonthestandardSugarCRMfunctionality.Theoutputofthisphase
isablueprintdocument.Inthisdocument,thechangestothestandardSugarsoftwareare
mentioned.Thesechangesaregraphicallydisplayedusingmock-ups.Whentheblueprintis
approved,thenextphasebegins.
• Thefourthphaseisthe‘apparelofSugar’.Inthisphase,thedemandsoftheblueprintare
implementedinSugar.Duringthisimplementation,thedataisimportedandthemodules
arechangedtothedemandsoftheclient.Thisisaltogetherproducedinatestenvironment.
• Thefifthphaseisthe‘useracceptancetest’.Duringthisphase,thewholetestenvironment
istestedbythekeyusersoftheclient.
• Thesixthphaseisthe‘training’.Thetrainingisattheclients’location,andthedurationis
oneday.Agroupofapproximatelyeightkeyuserswillbeprovidedwiththeknowledgeand
meanstousethesysteminthebestwaypossible.
• Theseventhandfinalphaseisthe‘golivephase’.Inthisphase,thesystemisreadytouse
andtheclienthasaCRMsystembasedontheirwishes.
13
3. TheoreticalframeworkCRM
Duringthemid-twentiethcentury,thereweretwoinnovationsthatchangedthecompetitivemarket
forgood.Theseinnovationsweremassproductionandmassmarketing.Beforethattime
shopkeepersandcustomerskneweachotherpersonallyandtheyhadapersonalrelationship.But
becauseofthosetwoinnovationstherelationshipbetweencustomersandshopkeepers
fundamentallychanged.Customersbecameanumberandshopkeepersdidnotknowwhatthe
individualneedsoftheircustomerswere(Chen&Popovich,2003).
Inrecentyearscompaniesaretryingtore-establishtheuniquerelationshipwiththeirclients(Alavi&
Leidner,2001).Theiraimistobuildalong-termrelationshipwiththeircustomers(Coussement&
Poel,2008;Gibbert,Leibold,&Probst,2002).Somecompaniesaremoresuccessfulthanothersin
achievingthis,andaccordingtoChen&PopovichthisisduetothecorrectimplementationofCRM
applications(Chen&Popovich,2003).
3.1 Customerrelationshipmanagement
TheCRMliteraturedescribesmultipledefinitions.Aselectionofthedefinitionsisdescribednext.
AccordingtoUrbanskienėetalCRMmeans:“thestartofadialoguewithacustomer.Itiseverything
whatisnecessarytosatisfythecustomers’needs”(Urbanskienė,Žostautienė,&Chreptavičienė,
2008,p.1).AnotherapproachisthatCRMisa“chainreaction”,causedbythenewpossibilitiesto
communicateabouttheclients’needstogetahigherqualityofservice.Thisisbecauseofthe
elevatedlevelofinformationtechnologydevelopment(Lee,2001,p.4).AnothersourcedefinesCRM
as:“thecomplexofsoftwareandtechnologies,automatingandperformingbusinessprocessesinthe
followingareas:sales,marketing,service,andclientsupport”(Thompson,2001,pp.1-2).The
softwareisatooltosupporttheinteractionbetweenmethodsinthedifferentdepartmentsofan
organization.
TosummarizethedefinitionsofCRM:
• ToppriorityofCRMisthedevelopmentoftheclientrelationship.Thisoptimizesthe
profitability,incomeandmeetstheneedsofclients.
• CRMisintegratedinalltechnologicalresourcesusedinacompanyandthedifferentfieldsof
activitythatarerelatedtothecustomer.
• CRMimpliesmaximalcustomizedfulfilmentofthecustomers’needs.
HowdoesCRMwork?CRMsystemsconsistmainlyoutof3categories:operationalsystems,analyticalsystemsand
collaborativesystems(Rose&Sugumaran,2003;Geib,Kolbe,&Brenner,2006;Ariana&Buttlel,
2007;Xu&Walton,2005).
14
• Operationalsystemsareusedfortheautomationoftheprocessandtoincreasethe
efficiencyoftheCRMprocess.
• Analyticalsystemsareusedtoanalysethedataoftheclients.
• Collaborativesystemsareusedtointegratecommunicationsystemsandmanagethe
interactiontouchpoints.Touchpointswithcustomerscaninclude:internet,e-mail,sales,
directmail,telemarketing,callcentre,advertisementandpapers(Eckerson&Watson,
2000).
OutcomesofCRMTheoutcomesofCRMhaveinfluenceontheactivities,offeredproductsandprovidedservicesofthe
client(Shaw,Subramaniam,Tan,&Welge,2001;Smith&McKeen,2005).Whenaclientwantsto
introduceCRMintheirorganization,itisimportanttochoosetheappropriatefirmand
correspondingsoftwaretodothat.Thisisbecausewhentheclientsmanagetheirclientrelationship
well,theyobtainprofitinanindirectway(Murillo&Anabi,2002;Garcia-Murillo&Annabi,2002).
Theprofitisobtainedthroughthecustomersoftheclient.Whenacustomerisunsatisfiedwiththe
serviceofaclient,awell-organizedandsuccessfulCRMstrategywillhelptosolvethisissue.Dueto
suchcooperation,itiseventuallyawin-winsituationfortheclientandtheircustomerbecause:
• Thecustomergetsaqualitativebetterservice/product.
• Aclientcanmoreeasilyservehercustomersbecauseoftheobtainedknowledgeintheir
database.
• Theclientcanincreasetheirincomebyhavingareliableandloyalcustomer(Urbanskienė,
Žostautienė,&Chreptavičienė,2008).
Theabove-mentionedoutcomesoftheenhancedcustomerrelationshipareelaboratedinmore
detailbelow.AtthismomentcompaniesareinvestingmoreandmoreinCRMtoanalysecustomer
valueandmodellingcustomerbehaviour(Winer,2001).Customervalueistheperceivedpreference
ofthecustomerwhenusingproductsandservicestoobtaintheirgoalsandpurposes(Woodruff,
1997).Whenthecustomervalueisknown,theclientcananticipatebyofferingproductsand
servicesbasedonthepreferencesoftheircustomer.Thiscanbethequalityoftheproductor
perhapsanotherapproachofservice.
TheotheradvantageofinvestinginCRMisgettingtoknowthecustomerbehaviour.Thecustomer
behaviouristheprocesswhereinactionsleadstosatisfactionofneedsanddemands.Whenthe
clientisawareoftheircustomer’sbehaviourtheycaninfluencetheprocess,customerneeds,
demandsandadaptthesatisfactions(Enis,1974).
ThelastoutcomeofCRMisanincreaseincustomerloyalty.Itisnotenoughtoonlyknowthe
demographicdataofyourcustomerstoretaincustomerloyalty(Greenberg,2008).Baseduponthe
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dataoftheircustomers,theclientscanofferanincreasinglycustomizedrelationshipwith
individualizedexperience.This,inturn,canincreasetheincomeofthefirm,becausecustomers
preferthefirmwheretheyhavehadapositiveexperience(Fox,2009).
3.2 KeyPerformanceIndicators
Two-thirdofalltheCRMinitiativesinorganizationsfail(Prezant,2013;Davids,1999).Everettetal.
indicatethatmorethan50%ofCRMprojectshavefailed,andthatmostcompaniesunderestimate
thecostsofCRMby40%to75%(Everett,2002,p.25;Davey,2014).Butwhencanonesaythata
projectissuccessfulornot?MeasuringthesuccessofCRMinanorganizationcanbedonebykey
performanceindicators(KPIs).KPIsareasetofmeasurementsfocusingonthoseaspectsof
organizationalperformancethatarethemostcriticalforthefutureandcurrentsuccessofthe
organization.TheproblemwithKPIsisthatveryfeworganizationsmeasuretheKPIsrelevanttothe
project.ThisisbecausetheorganizationsdidnotexplorewhatKPIsare,andtheyjusthaveamixof
performancemeasures(Parmenter,2007).
HowmanyKPIs?TherearemultipleviewsontheamountofKPIsacompanyshouldhave.KaplanandNortonsuggest
amaximumoftwentyKPIs(Kaplan&Norton,1996),butHopeandFrasersuggestfewerthanten
KPIs(Hope&Fraser,2003).Parmenter(2007)suggeststhatanorganizationshouldusethe10/80/10
rule.Thisruleindicatesthatinanorganizationthereareabout10KeyResultIndicators(KRI),upto
80Performanceindicators(PIs),and10KPIs.ThedefinitivenumberofKPIsdependsontheproject.
ThereareacoupleoffactorsthatinfluencethenumberofKPIs(Kerzner,2011):
• Thenumberofinformationsystemsusedintheorganization.
• Whoarethestakeholders?
• Istheinformationeasilymeasurable?
• Theorganizationalprocessassetsavailabletocollecttheinformationfrom.
• Whatarethecostsofmeasuringandcollectingthedata?
PIsversusKPIsEverycompanywantstoknowthestatusoftheirgoals.InthisresearchPIsandKPIsarethe
measurementinstruments.FirstthedefinitionofPIswillbegiven.Afterwardstherelationbetween
KPIsandPIswillbediscussed.
Everyactionafirmundertakeswillresultintheproductionofdata,andeveryproductionofdataisa
potentialmetric.Everyfirmhasthousandsofmetrics:howlongarethelightsonperday,whatare
thecostsofthecoffeemachineandhowmanycallsdoesacallcentreemployeemake?Manyof
thesedatapackagesaremetrics,anddonotindicateatallwhattheperformanceofthecompanyis.
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Whenmetricsgiveanindicationoftheperformanceofabusinessunit,ortheorganization;theyare
PIs.EffectivePIsaredevelopedandusedforregularmonitoringofthefirm(Carter,1989).The
managementcanalsoadjustthePIstobringperformancebackinlinewithexpectations(Parmenter,
2007).ThebiggestproblemwithPIsisthattherearehundredsofthemthatarefirmspecific.Thatis
whyitisdifficulttogeneralizethembasedontheliterature.Thewaytomakeadistinctionbetween
thesePIsistobasethemontheobjectivesofthefirm(Carter,1989).BydoingthisthePIscanbe
usedtooperationalizetheKPIs.ThisisadvisedbecauseKPIsareoftenabstractdefinitions.In
contrastPIsaremoreeasilytomeasureinpractice.Eventuallyitwillpreventadiscrepancybetween
differentmeasurementsbasedonthewrongunderstandingofthedefinition.
3.3 KeyPerformanceIndicatorsofCRM
HavingdefinedwhatismeantbyKPIs,thefollowingsectionwilldiscusswhatkindofKPIsthereare
(appendix3).Afterwards,isdiscussedwhattherightKPIsforyourCRMproject(appendix2)are.As
wasmentionedintheprevioussectionitisimpossibletodescribeuniversallygeneralizable
performanceindicators.Therefore,everycompany,projectandindustryneedsdifferent
measurementindicators(Kerzner,2011).
CRMsoftwaresuccessscaleThefollowingpartofthispapermovesontodescribehowtomeasurethesuccessofsoftwareof
CRM.AtechniquetomeasurethesuccessoftheCRMsoftwareisfromVenturini&Benito(2015).
TheyproposedaCRMsoftwaresuccessscalethatisbasedontheBalancedScoreCard(BSC).The
initialCRMsuccessscaleconsistsofthreedimensions.Thesedimensionsareoperationalbenefits,
benefitsinclientlifecycleandbenefitsinperformance(Venturini&Benito,2015).
1. Operationalbenefits.
Theoperationalbenefitsarerelatedtothegainsinproductivityandoperations.Thegainscanbe
achievedbyhavinganeffectivemanagementofsalescampaigns,customerserviceanddata
analysis.Thegainsinthisdimensioncanbemanagedbyreducingthecompanycostsandincreasing
theeffectivenessinrespondingtocustomers’requests,forexamplecustomerservice(Venturini&
Benito,2015).
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2. Customerlifecycle:thecustomerperspective
ThemostimportantbenefitsofthecustomerlifecyclewithCRMsoftwareisthatitimprovesthe
clients’abilitytocapture,retain,satisfy,recoverandsecuretheloyaltyofthecustomer(Croteau&
Li,2003;Kim&Kim,2007;Reinartz,krafft,&hoyer,2004).Thesebenefitscontributetoan
increasingcustomerlifetimevalueandthecustomerequity,whicharethepursuedoutcomesofthe
implementationofCRM(Kumar,Lemon,¶suraman,2006).
3. Firmperformance:financialandinnovation/learningperspectives
AnotheroptiontomeasuretheperformanceoftheCRMsoftwareistomeasureitatanorganisation
thathasimplementedit.Agoodindicatorofthismeasurementiseffectiveness,efficiencyand
adaptabilitytowardsthecustomers’needsandthemarket(Walker&Ruekert,1987).The
effectivenessofthecompanyreferstothesuccessinthesaleseffortsandthemarketsharegains
comparedtothecompetition.Efficiencyisthecomparativemeasurehowthecompanyusestheir
availableresourcestocreatesuccessinthemarket.Adaptabilityisthecompany’sabilitytoadjustto
changingconditionsandnewopportunitieswithcustomers.
MostrelevantCRMindicatorsofsuccessVenturini&Benito(2015)didastudyonCRMsoftwaresuccessintheliterature.Theydiscoveredin
33articles167differentrecurrentmeasurementsofsuccess.Thesemeasurementsweredouble
checkedwithfiveacademicsandsixCRMindustryprofessionals.Basedonthefeedbackofthe
academicsandprofessionalstheyrevisedthescalesandvalidatedthefinalindicatorsofCRM
success.Theseindicatorsareinappendix3reviewed.Inthisframeworkaretheitemsdisplayedthat
werefoundatleastthreetimesintheliterature.Thegraduatestudentofthisstudyaddedmultiple
sourcestotheframeworktokeepituptodate.Theindicatorscanbegroupedbytheirinterrelated
dimensions:operationalbenefits(1,2,3,4),benefitsincustomerlifecycle(5,6,7,8)andbenefitsin
performance(effectively:9,10/adaptability:11,12/efficiency:13).
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4. Researchmethodology
Inthischaptertheresearchapproachofthisstudyiselaboratedinmoredetail.Thedatacollection
technique,dataanalysisandthereliabilityandvalidityaredescribed(Westrik,2012).The
methodologychapterofthispaperdescribesthespecificprocedureandtechniquesusedtoidentify
andanalysetheinformationappliedtocarryouttheempiricalstudyofthisproject(Libguides,2016).
4.1 ResearchdesignThisempiricalstudyabouttheintroductionofperformancemeasurementsinaCRMsoftware
environmentismainlyfollowinganinductiveapproach,althoughitcontainsdeductiveelementsas
well.TheresearchisinductivebecauseexplorationofenablersandbarriersintheCRMsoftwareis
notlimitedtoexistingtheory.Thisstudyisalsoexploratory,becauseitexplorestheareaofKPIsfor
CRMsoftware(Dooley,2009).Anexploratorystudyisausefulapproachtodiscoverwhatisgoing
on,findnewinsights,askquestionsandtofindinformationthatwasnotdiscoveredearlier
(Saunders,Lewis,&Thornhill,2009).Apartofthestudyisalsodescriptive,becausetoanswerthe
researchquestions;thesituationofKPIsandCRMareillustrated(Dooley,2009).
Researchapproach
TheresearchapproachisbasedontheregulativecycleofVanStrien(1997).Forthisapproachischosenbecauseitfocusesondesigningasolutionbased�ontheorythatisspecificfora
business�case,allowingforacompletefocuson�thebusinessproblemathand.�Theapproach
consistsoffivesteps:identificationoftheproblem,analysis&diagnosisphase,planofaction,
interventionandevaluation.Thelasttwostepsarenotimplementedinthisresearchbasedonthe
tighttimescheduleforthisproject.
1. Identificationoftheproblem:itisthebasisoftheprojectplanandhowthesubsequent
analysis,diagnosisanddesignareapproached.
FortheemployeesoftheCRMcompanytheaddedvalueofSugarisknown,buttheaddedvalueis
notmeasured.Thisisaproblem,becauseitisdifficulttolettheclientsknowwhattheaddedvalue
ofSugariswithoutthecorrespondingdetails.Theidentificationoftheproblemisdefinedthrougha
thoroughunderstandingofthefieldofwork.Thisisdoneby:conductinginterviewswiththeproject
coordinatorinthefirstweeks,deskreviewandinformaltalkswithemployeesoftheCRMcompany.
Theproblemdefinitionforthisresearchis:whatare,forclientsoftheCRMcompany,theobjectives
andperformanceindicatorsthatmeasuretheeffectivenessofSugar?
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2. Analysisanddiagnosisphase:Producesspecificknowledgeonthecontextandnatureoftheproblem.
Toanalysetheproblem,theliteratureisexaminedinchapter3.Aftercriticallyreviewingthe
literature,multipleinterviewswithemployeesoftheCRMcompanywereconducted.These
interviewswereheldtoseekforinformationbasedupontheirexperienceduringprojects.Thedata
fromtheinterviewsandliteratureareusedinthediagnosephase.
TodiagnosetheproblemtheMCDManalyseisused.Thismethodinvolvestheuseofdifferent
weightedcriteriathatcreatesaprioritizedlistofKPIs.WhentheprioritizedlistofKPIsisknown,
thereisanoverviewofwhatthemosteffectiveindicatorsaretomeasuretheaddedvalueofSugar.
AftertheMCDManalysistheKPIsareputinalibrary.ThelibraryconsistsofalltheKPIsand
correspondingPIs.ThiswilleventuallyresultinanoverviewofPIsthatoperationalizetheKPIs.These
PIsarebasedonacombinationoftheoretical(literature)andpracticalsources(interviews).
Thelastdiagnosephaseistovisualisewhatisimportantduringtheimplementationinradarcharts.
ThismodelisusedtovisuallyshowhowtoapproachthedifferentclientsoftheCRMcompanybased
ontheirdemands.Eventuallythiswillcreateanoverviewofhowthedifferentcustomersegments
shouldbeapproachedduringtheimplementationbasedontheirpreferences.
AfterwardsthreeinterviewswithclientsoftheCRMcompanywereheldtotestiftheresultsare
applicabletotheircompany.
3. Planofaction:
Inthefinalphaseofthisresearchaplanofactionisdevelopedtoapplytheoutcomesofthis
researchintothestandardimplementationplanoftheCRMcompany.Theplanofactionconsists
outofthestepsthattheCRMcompanyshouldtaketoimplementtheproposedoutcomesintheir
projects.TheplanofactiongivestheCRMcompanyastartingpointhowthelasttwostagesofthe
problem-solvingcycleshouldbeintroduced.Thelasttwophasesofthiscycleare:interventionand
theevaluation.ThesetwostepsmustbeundertakenbytheCRMcompanytofindoutiftheresults
ofthisresearchareapplicableinpractice.
4.2 DatacollectiontechniquesTheprimarydataofthisstudyisgeneratedfromobservationandinterviewswithemployeesand
clientsoftheCRMcompany.Thesecondarydatacomesfromdifferentsources,onlinedatabases,
reportsandbooks.
Forthisresearch,multipledatacollectiontechniqueswillbeused.Thedatacollectiontechniques
arediscussedbelow(Saunders,Lewis,&Thornhill,2009).
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ParticipantobservationObservationofhowtheemployeesinteractwithclientsoftheCRMcompanyisthefirsttechnique.
DuringtheperiodfromNovemberuntilFebruarytheresearcherwastheobserver,becausethe
employeeswerefamiliarwiththeroleoftheresearcher.Theresearcherwaspartoftheteamand
participatedinmeetingsanddiscussions.Beingclosetothesituationisanadvantage,becausericher
dataisacquired(Saunders,Lewis,&Thornhill,2009).
Semi–structuredinterviewsTogatherthepracticalinformation;interviewswereheldwiththeemployeesoftheCRMcompany
(Table3).Theinterviewsweresemi–structured.Thisisbecausethequestionsweredeterminedin
advance,buttheywereopenquestions.Forthisapproachischosentodiscussalsosubjectsthatare
notdirectlyananswertothequestion.Hence,thedataisofhigherquality,becausetheinterviewee
cangivetheiropinionmoreeasily(Dooley,2009).Duringtheinterviewstheinterviewermade
notes,andtheinterviewwasrecorded.Aftertheinterviewtherecordingwasusedtoelaboratethe
notes.
Theinterviewquestionswerebaseduponthegapsintheresearchthatarosefromtheliterature
review.Toanswerthequestions,intervieweeswerechosenbasedonalistgivenbythesupervisor.
Theintervieweesweredividedindifferentstakeholdergroupstodiscoverwhattheirinvolvement
andexperiencewiththeCRMcompanywas.Therewereatotalofeleveninterviewsconducted
withinatimeframeofonemonth.Aftertheseeleveninterviewstheusedempiricalanalysiswas
consideredsaturated,asadditionalinterviewswouldnotyieldanynewinformation(Glasser&
Strauss,2009).
Interview Who Function Department Yearsinfirm1 (D1,2016) Director Delivery 10(founder)2 (D2,2016) Director Sales,Marketing,Finance 10(founder)3 (AM1,2016) Accountmanager Sales 54 (C1,2016) Consultant Pre-sales/businessconsultant 45 (C2,2016) Consultant SolutionConsultant 26 (C3,2016) Consultant Operationaldelivery 77 (C4,2016) Consultant Applicationconsultant 68 (C5,2016) Consultant Application,solutionconsultant/PM 29 (PM1,2016) Projectmanager Projectmanager 110 (C6,2016) Consultant Solutionconsultant 211 (C7,2016) Consultant Solutionconsultant 7Table3:OverviewInterviewsemployeestheCRMcompany
AsmentionedearliertherewerethreeinterviewsheldwithclientsoftheCRMcompany.These
interviewswereconductedtodoublecheckiftheresultsfromthethesiswererepresentativeand
achievablefortheirfirms.Theseinterviewsweredonepermail.Forthisapproachwaschosento
obtainthedataquickly,becauseofthedeadlineofthisthesis.Thethreeclientswerechosenbased
uponthattheyhadSugarCRMalreadyimplementedformultipleyearsandthattheywerewillingto
cooperateonashortnotice.
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SecondarydataThesecondarydataforthisresearchcamefromwrittensources:papers,scientificwebsites,reports
fromgraduationstudentsandbooks.Thispaperusedmultiplewaysofdatacollection,alsoknownas
triangulation.Triangulateisthe:“Useofdifferentdatacollectiontechniqueswithinonestudyin
ordertoensurethatthedataaretellingyouwhatyouthinktheyaretellingyou(Dooley,2009,p.
146)”.Anotherreasonthesecondarydataisusedtogetaknowledgebasisfortheresearcherand
thisreport.
4.3 AnalysisandDiagnosesThedatafromtheinterviewsisanalysedbyusingtheMCDMmethod.Usingthismethod,the
indicatorsthatarebestsuitableformeasuringtheaddedvalueofSugarareidentified.Themodel
willbeexplainedbelow(Turskis&Zavadskas,2011).
Multi-CriteriaDecisionModelTodeterminewhichindicatorsarebestsuitableformeasuringtheaddedvalueofSugartheMCDM
methodisapplied(Turskis&Zavadskas,2011).Thistoolisusedtosolveproblemsthatare
characterizedasachoiceamongalternatives.Thetoolhelpstosimplifydecisionsmakingbyrating
thealternativeoptions.Forthispaperthedifferentperformanceindicatorsgetaratingbasedonthe
criteria/characteristicsthatitneedstofulfil.Thismodelisknownforitssimplicity;itiseasytousein
practiceandthemethodrequiresrelativelylowamountoftimeperparticipant.Themodelconsists
ofafive-stepevaluationprocess(appendix1):
1. Checkforexclusioncriteria
2. Assignweightstocriteriabasedontheirimportance
3. Checkforevaluationcriteriaandassignpoints
4. Calculatefinalpointsforeachsolution(Weightmultipliedbyassignedpoints)
5. Choosethebestsolution
InthefirststeptheexclusioncriteriaoftheCRMcompanyarediscussed.Thisisnecessarytofindout
whatcriteriaareofsuchimportancefortheCRMcompany,sothatwhenaKPImatchesanexclusion
criteriontheywillbeexcludedfromtheanalysis.Theseexclusioncriteriawillbediscussedwiththe
focusgroup.Thefocusgroupisagroupofexpertswhoareselectedbecauseoftheirexperienceand
functionattheCRMcompany.Anexampleofanexclusioncriterionis:theKPIshouldbecompliant
withtheCRMcompanyway,rulesandlegalaspects.WhentheKPIisnotcomplianttheyare
excludedfromtheanalysis.
Thesecondstepistoassignweightstothecriteriabasedontheirimportance.Thecriteriaare
obtainedfromtheinterviewsandarethemostimportantaspectfortheclientduringthe
implementation.Thefocusgroupwilldiscusswhichweightsshouldbeassignedtothesecriteria.The
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weightsdistributedbetweentheevaluationcriteriavarybetweenveryimportant(weight:20),
important(weight:15)andrelevant(weight:10).
ThethirdstepistoevaluatethedifferentKPIs.Thisisdonebythefocusgroup.Theygivescoresfrom
0to100pointstothedifferentcriteria.Whenacriterionisthebestinacategoryitgets100points,
whenitperformstheworstitgetszeropoints.Thescoresthatarein-betweenreceiveascoreto
equalweightdistribution.
Thefourthstepistocalculatethefinalpointsforeachsolution.Wheneveryfocusgroupmember
hasgiventheirscores,thescoresareaveragedtocometoasingleconclusionperKPI.Whenthe
scoresbetweenthefocusgroupsaredistinct,thiswillbefurtheranalysed.
ThefifthandfinalstepistoanalysethedatathatisobtainedfromtheMCDManalyse.Itbecomes
clearwhatthebestscoringKPIsareandwhicharetheworstscoringKPIs.
ApproachingthedifferentclientsegmentsTheresultsfromtheMCDManalysearetheinputforthenextmodel:thecustomersegmentation
model.TodefinewhichclientsegmentstheCRMcompanyhas,theclientneedssegmentation
modelwasused(Simkin,2008).Thismodelfocusesonaddingextravaluefortheclient.Itlinksthe
goalsofthecustomertothewaytheyshouldbeapproached.Duringtheinitialmeetingwiththe
client,theCRMcompanycandiscusswhatthegoalsoftheclientare.Withthisinformation,it
becomesclearhowthespecificcustomershouldbeapproached.Byusingthisapproach,itwilladd
valuefortheclientbecausetheCRMcompanyisawareofwhatthefocuspointsareduringthe
wholeproject.
Whenthecustomersegmentsareknown,thedifferentsegmentationaxesaredescribed.Theseaxes
havethesamecriteriaastheMCDManalysis.Bydoingso,themodelvisuallyexplainswhichKPIscan
beusedforthedifferentcustomersegments.Thedatafortheclientsegmentsandtheindicatorsof
howthecustomershouldbeapproached,areobtainedfromtheinterviews.
4.4 ReliabilityandvalidityAccomplishingthestudybyusingtheabove-mentionedapproachhasiteffectsonthevalidityand
thereliability.Forexample,thestudyisinanaturalenvironment.Thismeansthatthereislow
externalvalidity,becausetheresultsarenoteasytogeneralize.Anotherimportantthreattothe
validityisthematuration.Maturationmeansthateventshappeningatthesametimeofthestudy
haveeffectontheoutcomes.ThisisofimportancebecausethisstudystartedinJuneuntilAugustof
theyear2016andthensetonholduntilNovember2016.Duringthepauseoftwomonths,things
couldhavechangedattheCRMcompany.Testingisthelastfactorthatinfluencesthevalidity.
23
Becausetheresearchisconductedinatestenvironment,theoutcomesofthisresearchareperhaps
notapplicabletosomeclients(Dooley,2009).
Thebiggestimpactofreliabilitycomesfromenvironmentalchanges.Becausetheresearchtakes
placeinafast-changingenvironment.Therecouldbesmallenvironmentalchanges,duringthetime
betweenmeasurements,whichcouldcreateerrorsintheresults.Thisinfluencestheobjectivityof
thedata(Dooley,2009).
Thereasonsthatwerementionedarenotofmajorinfluenceontheresultsofthisresearch.Thisis
becausethesupervisorsandresearcherwereawareoftheseproblems,andthetimeinfluencewas
minimal.Thevaliditywasnotinfluencedbytesting,becausetheresultsfromthetestenvironment
werecheckedwiththreeclients.Becauseofthistheimpactofthereliabilityandvaliditywas
minimalandhadlittletonoeffectontheendresults.
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5. ResultsInchapterfivetheresultsofthisresearcharediscussed.Firstisdiscussedwhattheglobalindicators
ofthesuccessoftheimplementationare.Afterwardsaretheprojectspecificindicatorsintroduced.
Theseprojectspecificindicatorsaretheinputformultiplemodelsandanalysisinthischapter.The
outputofthischapterisanoverviewofhowthesuccessofSugarcanbemeasured.
5.1 IndicatorsoftheCRMcompany
Duringtheinterviews,globalindicatorswerementionedbytheintervieweestoaddressthesuccess
oftheimplementation.Globalindicatorsareforthisresearchindicatorsthatareapplicableforevery
projecttomeasurethesuccessoftheimplementation.Theseindicatorsareimportantduringthe
implementation,becauseonlymeasuringtheKPIsandPIsgivesaone-sidedviewoftheproblem.
Theseglobalindicatorsare:customersatisfaction,financialpayments,abilitytomonitortheusers
andpredeterminedfeedbackmoments.
• Customersatisfaction
CustomersatisfactionistoppriorityfortheCRMcompany.ItisofsuchimportancefortheCRM
companythatitisincorporatedintotheirslogan:“Createhappycustomers”.Thisbecameclear
duringtheinterviews;thesoftwareshouldbeimplementedinsuchamannerthatitcreatesvalue
fortheclient.
Creatingvalueisdifferentforeveryprojectandemployeeoftheclient.Thatiswhytheinterviewees
advisedtomeasurethecustomersatisfactionbyconductingaresearchwiththekeyusersofthe
client.Thisshouldnotbeaformalresearch,butshouldbeaninformalphonecallormeeting.During
thisinformaltalk,theCRMcompanymustfindoutifthekeyuserissatisfied.Withthisindicator,the
CRMcompanycanmeasureiftheKPIsthataresetatthestartofaprojectareachievedamongstthe
keyusersoftheclient(C3;AM1;D2;C1).Whenthecustomer’sgoalsareachieved,itisassumedthat
customersarehappy(C5).
• Financialpayments
WhenthereisnodiscussionaboutthemonetarycompensationoftheimplementationofSugaritis
aglobalindicatorthattheimplementationissuccessful.Whenacustomerissatisfiedwiththe
implementationofthesoftware,theclientisnotgoingtodiscussthepaymentrequest.Thisis
becausetheclientissatisfiedwiththeextravaluethesoftwarecreatesfortheirfirm.Whenvaluefor
theclientiscreated,therequestofpaymentisnotanissue(D2;C3).
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• Abilitytomonitortheusers
Thethirdglobalindicatoristomonitortheusageofthesoftware.Theusersmakeorbreakthe
successoftheimplementation.Key–usersreceiveatraininghowthesystemshouldbeused
accordingtotheCRMcompany.The“normal”usersdonotgetthistraining.ForCRMsoftwaretobe
successfulallusersshouldusethesoftwarecorrectly.TomeasurewhichusersareusingCRM
softwarecorrectly,Sugarcanbeused:whattime-periodaretheusersonlineinthesystem,which
modulesdotheyuse,whichfieldsdotheyuseandwhatisthequalityofthedatainthecompulsory
fields(C3;PM1;C2;C6).
• Predeterminedfeedbackmoments
Thelastapproacharepredeterminedfeedbackmomentswiththeclient.Thesefeedbacksessions
shouldbeatscheduledtimes(C2;C6;AM1).Byhavingapredeterminedfeedbacksessionafterthe
implementation,theemployeescanmentionwhatdifficultiestheyarefacingwithSugar(C6;AM1).
Thiscanbedonebysendingareporttotheclientaftertheimplementationisfinished.Inthisreport
themonitoredusageoftheusersareanalysed.Thisreportcanbeusedasstartingpointofa
discussionwhereinisdiscussedwhatthefindingsoftheclientare(C3;C5;C6).
Projectspecificpointsofinterest
Nexttotheglobalindicatorsthatwerediscussedabove,thefollowingsectiondiscusseswhatthe
projectspecificindicatorsforthesuccessoftheimplementation.Theprojectspecificindicatorsare
usedasinputfortheMCDManalysis,customersegmentationmodelandtheplanofaction.Thisis
becausetheydetermineiftheprojectissuccessfulfortheclient.
• Costsoftheprojectarealwaysimportantfortheclients(C3;C5;D1;AM1;D2).
• Thespeedofthesoftwareiscritical,butthatisself-evident.Thatthesystemworksata
decentspeedisessentialfortheclients’satisfaction(C3;PM1;C2;C6).
• Forclients,itisimportantthattheprojectispredictable.Predictabilityoftheprojectarises
fromclarityofthecosts,planning,quality,functionality.Theprojectmustbeontimeandon
budget(C5;PM1;AM1;D2).
• Forclients,itisimportantthattheemployeesoftheclientcaneasilyworkwiththe
software.Theusabilityiskeyfortheemployeesoftheclient.Thishasasaresultthatevery
employeeoftheclientcancompletelyrelyonthesoftwareinsteadofseeingconstraintsby
usingthesoftware(C4;D1;C7;C2;C6).
• Timeisanotherindicatorofthesuccessoftheimplementation.Inwhatperiod,canthe
softwarebesuccessfullyimplementedinthefirm(C3;AM1)?
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• Anewindicatorthatisgettingmoreandmoreessentialistheaccessibilityofthesoftware.
Thatthesoftwareisavailableonyourpersonalmobileandthatthedatacanbeaccessed
whereverandwhenever.Afactorthatcorrelateswiththisindicatoristhelocationofwhere
thedataisstored.Isitstoredlocally,attheCRMcompanyorabroad(C4;C2)?
• Thesoftwarethatisdevelopedshouldbeeasilyadjustable.Whentheclientwantssome
changes,itshouldbeeasytoadjustthesoftwaretotheclientswishes(C4;AM1).
• Reliabilityisalsocriticaltotheclient.Thesystemshouldbeconsistentwiththeresultsthat
areshown.Thesystemshouldbeofaddedvaluebybeingsupportiveanduserfriendly(C2).
5.2 MCDManalysisTodeterminewhichKPIsaremostsuitableforclientsoftheCRMcompanytheMCDManalysisis
used.ThisanalysisusesthethirteenKPIsfromVenturini&Benito(2015)andtheeightindicators
(projectspecific)thatwereintroducedearlierinchapter5.1.
TheMCDManalysisisexecutedbyusingexclusioncriteriaandevaluationcriteria.Inthefirststepis
checkediftheKPIsmatcheswiththeexclusioncriteria.Ifacriterionisansweredwith‘No’,theKPI
willbeexcludedfromthelist.TheexclusioncriteriaarecompliancewiththeCRMcompanyway/
rules/legalaspects,degreeofcorporateculturefitandcontainerconcept.Somescoresreceived,at
theexclusioncriteria,"Future”asanswerfromthefocusgroup(Customerloyalty,customershareof
wallet,customerrecovery,marketshare,salesfromtargetmarket,launchofproductsandservices,
performanceofappliedresources).Withfutureismeantthattheseindicatorsarenot(orlimited)
usedduringprojectsofTheCRMcompany.Thisisimportantforthisresearch,becauseallthirteen
KPIs(includingthosewhomreceivedafutureasexclusioncriteria)werementionedintheliterature
asimportantforthesuccessoftheCRMsoftware.So,itisinthebestinterestofTheCRMcompany
whentheseKPIsareaddedtotheimplementationplan.Inaddition,thefocusgroupmemberswere
enthusiasticabouttheaddedvalueofintroducingthemattheCRMcompany.
Theevaluationcriteriaaretheeightprojectspecificindicators.Byusingtheseevaluationcriteria,the
KPIsareassessedfromaprojectpointofview.Thefocusgroupdiscussedandassignedweightsto
theprojectspecificindicatorsbasedupontheirimportance.Theydidtheirassessmentbasedupon
howtheythinktheclientwouldevaluatetheaverageproject.Theweightsdistributedbetweenthe
evaluationcriteriavarybetweenveryimportant(weight:20),important(weight:15)andrelevant
(weight:10).Theweightswereassignedbythefocusgroupandjustifiedinappendix1.Nowthatthe
criteria(exclusionandevaluation)andweightsareclear,thefocusgroupisusedtodeterminewhat
scoreanindicatorgets.Thefocusgroupgavescoresfrom0to100points(Figure2).Whenan
indicatoristhebestinthatcategoryitgets100points,whenitperformstheworstitgetszero
points.
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Figure2:DistributionpointsperevaluationcriteriaoftheMCDManalysis
Basedontheweightsmultipliedbythescoreoftheevaluationcriteria,theKPIreceivesafinal
overallscore.Anexampleofthecalculationis:costsgottheweightof15(important),andtheKPI
salesmanagementscored100points(veryhigh)=15*100=1500.Thisprocessisdoneforall
projectspecificindicatorandthenisthesalesmanagementKPIfinished.ThefinalscoreofeveryKPI
iscalculatedperfocusgroupmember(table4).Theseoverallscoresareaveragedtogetanoverall
scoreperKPI.Basedontheseaverages,anoverviewofthebestandworstscoringKPIsiscreated.
ThethreebestscoringKPIsaccordingtothefocusgroupare:
• Salesmanagement(9042)• Customerservicemanagement(8958)• Customerloyalty&satisfaction(Samescore:8458).
ThethreelowestscoringKPIsaccordingtothefocusgroupare:• Customershareofwallet(5500)• Campaignmanagement(5792)• Performanceofappliedresources(6125)
ThescoresoftheMCDManalysewereanalysedbylookingatthedifferencesbetweenthescoresof
thefocusgroupmembersinTable4.Thisisdonebyusingacalculation:focusgroupmemberscore
percriteriadividedbytheaveragefocusgroupscore.Thisresultedinthreeindividualdifference
scoresperfocusgroupmember.
Toaddresswhatthedifferencesinscoringbetweenthefocusmembersis,thestandarddeviationis
used.Whenthestandarddeviationissmall,thefocusgroupmembersaremoresimilarminded
aboutthescore.Thefocusgroupmembersweresimilarmindedaboutthesalesmanagement
(0,013),Marketshare(0,087)andtheanalysisofthecustomerdatabase(0,063).Thereisthebiggest
differenceinscoreswiththecustomershareofwallet(0,505).Baseduponthis,isitdifficultto
discoverapatterninthestandarddeviation.Thiscanberelatedtothedepartment(Sales&
Consultancy)andexperiencewithdifferentprojectsofthefocusgroupmembers.
TheaveragescoresoftheMCDMareanoverviewofhowtheKPIsscoreontheindicatorsthatwere
mentionedduringtheinterviews.Thefocusgroupmembersgavetheirscoresbasedonhowthe
theybelievethattheclientsoftheCRMcompanythink.Thisisaguess,andbasedonlyontheir
experienceandgutfeeling.Furthermore,thescoresarebasedontheaverageprojectoftheCRM
company.EverynewprojectoftheCRMcompanycanhaveotherweightsandscoresbasedonthe
demandsoftheclient.Thisanalyseisonlyabaselinemeasurementthatistryingtodistinguish
whichKPIsscorebetteronaverage.Thus,whichKPIsarethecriticalindicatorstomeasurethe
successoftheimplementationofCRMsoftware.
28
5.3 LibraryoftheacquireddataDuringtheinterviewswithemployeesoftheCRMcompanyandtheliteraturereview,multipleKPIs
andcorrespondingPIswerefoundtomeasurethesuccessoftheCRMsoftware.Theseindicators
werecollectedtocomeupwithanoverviewofalltheindicatorsthatwereapplicablefortheCRM
company.Thiscollectionisplacedinalibrary(Appendix5).Fromthislibraryprojectmanagersofthe
CRMcompanycanchoose,inconsultationwiththeclients,indicatorstomeasuretheproject
success.Forthisapproachischosenbecauseperformancemeasurementsareprojectdependent
(C7;C6;AM1).Thereasonthatthereisameetingwiththeclientistomanagetheexpectationsof
theclient(C3;C2;AM1).Duringthismeetingarethegoalsoftheprojectdiscussed.Ifthesegoalsare
met,theimplementationphaseissuccessful(C5;C2;D2).
ThelibrarystartswiththethreemainreasonswhycustomerscometotheCRMcompanyaccording
tothesupervisorofthisresearch:sales,marketingandservicesupport(Beek4,2016).Thenextstep
istoimplementthethirteenKPIsofCRMsoftwarefromVenturini&Benito(2015)inthelibrary.
ThesethirteenindicatorsaremeasuredbythePIs.Whenanindicatorwasfound,itwasplacedinthe
library.Ifanindicatorwasmentioned,newsourcesofthesameindicatorwerenotwrittendown.
Thereasonforthiswastokeepthelibraryorderly.
5.4 Customersegmentationmodel
TheemployeesoftheCRMcompanymentionedfivereasonsforintroducingCRMintheir
organization.TomeasurehowthedifferentcustomersegmentscanbemeasuredtheKPIscanbe
used.TheseKPIsarelinkedtothecustomersegmentsbaseduponthescoresthatthefocusgroup
gavetotheindicatorsintheradarcharts.Thisisdonebylookingatthebestscoringindicatorsinthe
radarchartsinappendix6.
Table4:Finalaveragepointsgivenandstandarddeviationoftheresults
29
PersegmentthreeKPIsareselectedaccordingtothescoresofthefocusgroupapplicableto
measurethesegment.
• Centralisation.ClientschoosetoimplementCRMintheirorganizationtocentralizetheir
dataaspartoftheCRMsoftware.Intheoldsituation,thedataisstoredatmultiple
locations.Forexample,theselocationscanbe:Excel,OutlookandWord(C3;C4;D2).The
KPIstomeasurethissegmentare:Salesmanagement,adaptionofproducts&servicesand
launchofproductsandservices.
• Salesimprovement.AninsightinthesalesisanotherreasonforclienttointroduceCRM.
Withinsightinsalesismeant;moreinsightinopportunitiesandtoguaranteethatthesales
departmentarefocusingontherightprospects.Bydoingthis,thesalesprocesswillbecome
moreefficientandeffective(C5;C3;PM1;D1;C2;AM1).TheKPIstomeasurethissegment
are:Customerloyalty,salesfromtargetmarketandsalesmanagement.
• Costs.ToimplementacompletenewCRMsystemfortheclients’organizationisexpensive.
ThatiswhyorganizationspickSugar.Bydoingthis,theclientshavearunningstartby
implementingCRMsoftwareintheirorganization.TheclientscanuseSugarasabasisfor
theirupcomingprojects.TheadvantageofusingSugar,inrelationtostandardbuildsystems,
isthatSugarissoflexiblethatyoucanputnewadditionsinthesoftware(C3;C6).TheKPIs
tomeasurethissegmentare:Salesmanagement,customerloyaltyandcampaign
management.
• Insightownprocess.ExtrafocusonyourownprocessisanotherreasonforintroducingCRM.
Mostclientshaveextendedknowledgeabouttheircustomers,butthisisnotcomplete,orit
isstoredinmultiplesystems.Theclientswanta360-degreeviewbasedontheircustomer
(C3;C4;C5;PM1;D1;D2;C7;AM1).TheKPIstomeasurethissegmentare:Customerservice
management,analysisofcustomerdatabaseandsalesfromtargetmarket.
• Professionalizing.Theprofessionalizingoftheclientappearanceisthelastreasonto
implementCRMintheclients’organisation.Tobecomemoreprofessional,aCRMsystemis
thekeytostandardizetheirprocess.Thestandardizedprocesshasinfluenceonthe
professionalapproachofcustomersandtheprocessesoftheclient(C2).TheKPIsto
measurethissegmentare:Analysisofcustomerdatabase,performanceofappliedresources
andadaptionofproductsandservices.
Basedupontheabove-mentionedcustomersegmentsfiveradarchartswerebuild.Itshowswhat
influencetheprojectspecificindicatorshaveofthecustomersegments.Baseduponthiscancreate
anoverviewatthestartofaprojectwheretheCRMcompanyshouldfocusupon.Inappendix4are
thefivedifferentcustomersegmentsvisualisedintheradarcharts.Oneexampleofthisoverviewis
30
0
1
2
3Reliability
Speedofthesoftware
Costs
Userfriendliness
Predictability
Time
Mobilitysoftware
Adjustability
Costs
createdindisplayedinfigure3.Thesefiveradarchartsareexampleshowthedifferentcustomer
segmentscanbeapproached.ItshouldbeusedbytheCRMcompanyatthestartofaprojectto
visualizewhatthefocuspointsofthatspecificprojectare.
5.5 PlanofactionInthissub-chapterthethirdstepoftheregulativecycle(Strien,1997)isdiscussed:theplanof
action.Theresultoftheplanofactionistheimplementationoftheoutcomesofthisresearchinthe
standardimplementationplan.ToimplementtheperformancemeasurementsattheCRMprojects
oftheCRMcompany,aroadmapissetuptoimplementitsuccessfully.Thisroadmapisbasedupon
theliteraturestudyandinterviewswithemployeesoftheCRMcompany.Theimplementationofthe
outcomesiskeytothesuccessoftheperformancemeasurement.Whenitisimplemented
successfully;thesystemwillbeobtainedandusedproperlybytheemployeesoftheCRMcompany
(C2;C3).Theplanofactionwiththecorrespondingstepsarevisuallydisplayedinfigure4.
Planofaction
Firstisdiscussedwhattheissuesatthestartoftheimplementationare.Thefirstissueisthatclients
oftheCRMcompanyoftendonothaveCRMgoalswhentheystatethattheywanttointroduceCRM
intheirfirm(Beek,2016).TheclientsdohavegoalsduringtheCRMsoftwareimplementation,but
theseareglobalandnotCRMspecific.Anotherissueisthattheperformanceindicatorsmustbe
choseninthefirstorsecondweekofintroducingKPIs(Parmenter,2007).So,thereislimitedtimeto
choosetherightperformancemeasurements.Allinall,atthestartofaprojecttheCRMcompany
shouldtakealeadingandactiveroleinsettinguptheCRMgoalsoftheproject(Beek,2016).Thisis
donebecause,whentheclienthastheleadingrole,theprojectcanencounterunnecessarydelays.
Figure3:Overviewspecificprojectindicatorsthatinfluencecustomersegments
31
1. Thenewimplementationplanshouldstartwithanewstep:apreliminaryinvestigationof
theclient.Duringthisinvestigation,anemployeeoftheCRMcompanycanworktogether
withtheclientonacase.Basedonhowtheclientsolvesthiscase,importantfocuspointsof
theimplementationarechosen(C4;PM1;D1;AM1).Forexample,thecaseisa
questionnairewheretheclientmustchoosebetweentwoPIs.Thiswillresultinanoverview
ofwhichKPIsareimportantfortheclient.Anexampleofthiswasdiscussedinthecustomer
segmentationmodelinchapter5.4.
2. Afterapreliminaryinvestigation,theclientgoalsforimplementingCRMsoftwareshouldbe
discussedwiththeCRMcompany.OftenthosegoalsarenotCRMrelatedandshouldbe
translatedduringthediscussionintoCRMgoals.Duringthismeeting,thegoalsof
implementingCRMsoftwareshouldbecomeclearforbothparties.
3. Afterthegoalsarediscussed,theCRMcompanyshouldtakealeadingroletolinkthese
goalstotheKPIsofVenturini&Benito(2015).Thiscanbedonebyintroducinganewstepin
theoriginalimplementationplan(beforetheSugarWorkshop(chapter2.3)).Inthisstepare
thegoals,inconsultationwiththeclient,linkedtotheKPIs.
4. WhenthegoalsoftheclientarelinkedtotheKPIs,anoverviewofKPIsthatneedtobe
measuredforthatspecificprojectiscreated.ThefourthstepdefineshowtheseKPIscanbe
measured.TomeasuretheKPIs,theCRMcompanycanusethedifferentPIsthatare
compiledinthelibrary(appendix6).Theseindicatorsdonotcoverallthepossibilitieshowto
measuretheKPIs,butareanoverviewofhowthedifferentKPIscanbemeasured.
Figure4:StepsofimplementingKPIsinTheCRMcompanyprocess
32
5. DuringanewmeetingwiththeclientthedifferentKPIsandthecorrespondingPIsshouldbe
discussed.Bydoingthisthemeasurementsindicatorsareclearforbothparties,andif
necessary,adjustmentscanbemade.Thiscanbedoneduringthethirdphase(blueprint
phase)oftheoriginalimplementationplanoftheCRMcompany.Bydoingthis,theCRM
companytakestheleadingroleinsettinguptheperformancemeasurement,buthavethe
clientsinvolvedintheprocessandreflectupon.
6. Toindicatewhattheaddedvalueoftheimplementationis,abaselinemeasurementshould
bedonetomeasurewhatthestartingpointoftheperformanceindicatorsis.Bydoingthis,
theCRMcompanycanfocusonthesecriticalperformanceindicatorsduringthe
implementation(PM1;D1;C1).
7. Approximatelyhalfwaythroughtheimplementationanewstepshouldbeintroduced.Inthis
step,thestatusofthePIsshouldbediscussedwiththeclient.Bydoingthisitbecomesclear
ifthereshouldbeputmoreeffortinthePIs,orthattheyareprogressingaccordingtoplan.
DuringthischeckemployeesoftheCRMcompanyshouldasktheclientswhattheir
experienceswiththesoftwareisandifthereareanyproblems(AM1;D2).
8. Attheendoftheimplementationprocessitbecomesclearifthedifferentgoalsare
achievedbycheckingthePIs(C3;C1;D2).Whentheresultsareknown,theoutcomesmust
bediscussedwiththeclient.Thisisofimportance,becauseinmostprojectsthereareno
officialsupportsessionsaftertheimplementationplanoftheCRMcompany.Thisisbecause
thereisnobudgetaddressedtoit.Duringtheimplementation,theclientisimportant,but
afterthe“Golive”momentclientsareside-lined.Afterwards,employeesoftheCRM
companywouldliketodiscusswhattheproblemsoftheclientsare,andiftheyhaveany
suggestions(C4;D2;AM1).
ByimplementingSugar,clientsoftheCRMcompanycanmakeafreshstart,buttheclientistheonly
onethatcanmakeitasuccess.
InterviewsclientsoftheCRMcompany
DuringtheinterviewswiththreeclientsoftheCRMcompanytheabove-mentionedresultswere
discussed.Thiswasdonetocheckiftheresultswererepresentativeandachievablefortheirfirms.
Atthismoment,someclientsmeasuredthesuccessoftheimplementation(Client1,2017).Theydid
thisbyhavinganevaluationwiththeusers.ItisofaddedvaluefortheclientswhentheCRM
companydidtheseevaluations(Client1,2017)(Client2,2017)(3,2017).Theevaluationhadasa
resultthatisbecameclearwhichprojectswerecurrentlyactiveattheclient,whattheirstatuswas
andhowtheclientwascommunicatingwithintheproject.
33
Theextraevaluationmomentsintheplanofactionshouldhappenduringandafterthe
implementationoftheCRMcompany,butitmustbeclearwhatisgoingtobemeasuredandwhat
thebaselinemeasurementis.
Asuggestionthattheclientsgave,wasthatatthestartoftheprojecttherealintentionsoftheclient
mustbediscussed.Thisinformationshouldbeobtainedbyusingmultipleinterviewswiththeclient
(Client1,2017)(Client2,2017).
34
6. ConclusionInthischaptertheresearchquestionisanswered.Thisconclusionisbasedonthefindingsfromthe
previouschapters,especiallyfromchapterfive,introducingtheresultsandtheactionplan.To
answertheresearchquestion,thedifferentsub-questionsareanalysedfirst.
Sub-question1:WhatisinexistingliteratureknownaboutCRMandwhataretheoutcomesfor
firmsthatimplementCRMtotheircompany?
CRMcanbedefinedasthedevelopmentoftherelationwithyourcustomer.Itisintegratedinall
technologicalresourcesusedinacompanyandthedifferentfieldsofactivitythatarerelatedtothe
client.Thus,CRMimpliesthemaximalcustomizedfulfilmentoftheclients’needs.
ByimplementingCRMtothecompany,thiswilleventuallyleadtoprofitinanindirectway.The
profitcanarisefromeffectivemarketingthatisbasedonthedataofthecustomer.Thisis,becausea
clientcanservehercustomersmoreeasilybasedupontheobtainedknowledgeintheirdatabase.
Eventuallythiswillleadtoanincreaseoftheirincome,basedonareliableandloyalcustomer.The
lastmajoroutcomeofintroducingCRMtoyourfirm,isthatthefirmgetsaqualitativebetterservice
/productthatisbasedonthewishesanddemandsofthecustomer.
Sub-question2:HowcantheCRMcompanymeasuretheKPIsofCRM?
TheKPIsofCRMarebroadtermsthatarehardtodefine.ThishasasdifficultythattheseKPIscanbe
understoodincorrectly.Thatiswhy,formeasurementsoftheKPIs,thePIsareusedinthisresearch.
Thesemeasurementsarecollectedinalibrary(Appendix5).FortheCRMcompany,thislibrarycan
assisttheconsultantoftheprojecttoformthegoalsoftheclient.Thislibraryshouldbeusedasa
referencebook,notasthemainsolution.Becauseofthis,thelibraryisnevercomplete;inthe
constantchangingITenvironment,itshouldbeupdatedbynewindicatorsregularly.
Sub-question3:HowcantheperformancetoolofmeasuringKPIsofCRMbeimplementedinthe
standardimplementationplanoftheCRMcompany?
Thebestwaytoimplementtheoutcomesofthisresearchintheimplementationplan,istoadjust
theoriginalplan.Thebiggestadjustmentsare:apreliminaryinvestigation,determiningthe
measurementindicatorsandafeedbacksession.
Beforethestartofanimplementationplan,theCRMcompanyshouldorganizeapreliminary
investigationwheretheyusecases.Thesecasesarediscussedafterwardswiththeclienttoaddress
thecriticalpointsoftheimplementation.Thesecondadjustmentaretheintroducingmeasurement
indicators.Thesearediscussedinthesecondsub-question.Aftertheimplementation,the
performancetoolshouldbeevaluatedbasedontheresultsthatareachievedattheclient.
35
Themainresearchquestionis:
Whatare,forclientsoftheCRMcompany,thecriticalindicatorsofaCRMproject,andhowcan
theseperformancemeasuresbeputintoeffectduringtheimplementationprocessoftheCRM
company?
Inthenextsection,theprincipalfindingsofthecurrentinvestigationwillbepresented.Duringthe
research,multipleanalyseswereusedtofindanswersforthemainresearchquestion.TheMCDM
analyseisthefirstmethodused.ThemodelofVenturini&Benito(2015)wasthebasisforthis
analysis.ThereareaccordingtothismodelthirteenKPIsthatarecriticalforthesuccessofthe
implementation.Fromthisanalysis,anaverageprojectoftheCRMcompanywasusedasinput.
Baseduponthisanalysis;therearefourKPIscriticalforthesuccessoftheimplementation:Sales
management,Customerservicemanagement,Customerloyalty&Customersatisfaction.
ToputtheKPIsintoeffectduringtheimplementationPIsareused.ThesePIscanbeusedto
operationalizetheKPIs,becausePIsareeasiertomeasureinpractice.Thisresultedinalibrary
whereinalltheKPIsareelaboratedbythePIs.FromthislibraryprojectmanagersoftheCRM
companycanchoose,inconsultationwiththeclients,indicatorstomeasurethesuccessofthe
project.ImplementingKPIsandPIsintheprojectsoftheCRMcompanyisoneoftheessentialsteps
inthenewimplementationplan.Themostimportantstepsofthisimplementationplanareto
introduce:apreliminaryinvestigation,theabove-mentionedindicatorsandmultiplefeedback
sessionswiththeclient.
Toimplementtheindicatorsandimplementationplansuccessfully,theCRMcompanyshouldfocus
onwhatisexperiencedasimportantforthedifferentclientsegments.Duringtheresearchthe
differentclientsegmentswerediscovered.Thesesegmentswerebasedupontheneedsof
implementingCRMintheirorganisation:Centralisation,costs,salesimprovement,insightintheir
ownprocessandreliability.
OneofthemoresignificantfindingstoemergefromthisstudyisthattheCRMcompanyalready
usedsomeoftheKPIsintheirimplementationplan.TheproblemisthattheseKPIsarenot
measuredtoassurewhattheaddedvalueoftheCRMcompanyis.WhenallthirteenKPIsare
introduced(andappropriatelymeasured)inthesoftwareandtheimplementationplan,theCRM
companycanincreasethevaluetheycreatefortheircustomers.Thiswillresultinanincreaseof
happycustomersandmaximalcustomizedfulfilmentoftheclients’needs.
36
7. Recommendations
Chaptersevenisthelastchapterwiththerecommendationsofthisresearch.Whatcanfurther
researchaddtothisresearch?WhatareimportanttipsfortheCRMcompany?
ThefirstrecommendationistointroducethelasttwostepsofVanStrien(1997)regulativecycle:
interventionandtheevaluation.Thesetwostepswerenotachievedduringthisresearch.Butthey
arenecessarytosuccessfullyimplementtheoutcomesofthisresearch.Thisshouldbedoneby
introducingthenewimplementationplanatanewproject.Thestepsthatshouldbeimplemented
arediscussedintheplanofaction.Bydoingthis,itbecomesclearfortheCRMcompanyifthe
outcomesoftheresearchareimplementableinpractise.Theresultsfromthisinterventionshould
bediscussedwiththewholeteamtoevaluateitproperly.
AnotherrecommendationistheIntroductionofanocure,nopaysolution.Itisarisky
recommendation,becausewhentheCRMcompanydoesnotachievetheirpromises,itcanbea
costlyapproach.ButwhentheCRMcompanyisconfidentinthegoalsthattheyprescribeitcan
resultinmoreclients.Thisapproachshouldbeimplementedafterthesoftwareismeasuredfora
yearinmultipleprojects.Themeasurementscoresoftheseprojectscanbecombinedandaveraged.
WhenanewpotentialclientthencomestotheCRMcompany,youcanintroducethenocure,no
paysolution.Anexampleofacureis:byintroducingSugar,saleswillincreaseby10%.Whenthisis
notobtainedin1yearItisnotnecessarytopay.Itisimportantthattheconditionsneedtobe
defined.Thisisbecausemultiplefactorsinfluencethesalesimprovement.
BasedupontheinterviewswiththeclientsoftheCRMcompany,theno-cureno-payapproachwas
notareasontochooseearlierfortheCRMcompany(Client1,2017;Client2,2017;Client3,2017).
BasedupontheresultsfromtheMCDManalysisthethreelowestscoringKPIsaretheCustomer
shareofwallet,campaignmanagement,andperformanceofappliedresources.Thescoresarean
overviewofwhatclientsoftheCRMcompanyfindimportantfortheirCRMsoftware
implementation.Theliteraturehasidentifiedthesethree,amongtheotherthirteen,asmost
importantforimplementingCRMsoftwareinyourorganisation.Baseduponthesefigures,theCRM
companyshouldfocusonthesethreeKPIstoguaranteethesuccessfulimplementation.
WhentheCRMcompanychoosestofocusonlyonofferingthebestKPIstotheircustomersthenext
fourKPIsscoredthebest:Salesmanagement,Customerservicemanagement,Customerloyalty,and
satisfaction.ButaccordingtotheliteratureallthirteenKPIsareessentialforthesuccessofthe
software(Venturini&Benito,2015).
37
Sevenscoresreceived,intheMCDManalysis,"Future”asanswer(Customerloyalty,customershare
ofwallet,customerrecovery,marketshare,salesfromtargetmarket,launchofproductsand
services,performanceofappliedresources).Withfutureismeantthattheseindicatorsarenot(or
limited)usedduringprojectsoftheCRMcompany.Thisisimportantforthisresearch,becauseall
thirteenKPIs(includingthosewhomreceivedafutureasexclusioncriteria)werementionedinthe
literatureasimportantforthesuccessoftheCRMsoftware(Venturini&Benito,2015).Inaddition,
thefocusgroupmemberswereenthusiasticabouttheaddedvalueofintroducingtheminthe
software.ByfocusingontheseKPIstheCRMcompanycangivetheclientsabroadersoftware
package.
ByusingthecustomersegmentationmodelthedifferentclientsegmentsoftheCRMcompanywere
defined.Baseduponthesegments,radarchartswerebuiltwiththecriteria(Projectspecificcriteria)
assegments.Theseradarchartsshouldbeused,duringallthenewimplementations,tofigureout
whatthemostimportantaspectsforthatspecificprojectare.Baseduponthatspecificapproach,a
companygetsacustomizedapproachbasedupontheirneeds.Thiswillresultinthegoalsof
implementingCRMintheclients’organisation:increaseofhappyclientsandmaximalcustomized
fulfilmentoftheclients’needs.
38
Appendix1:MCDM
1. Exclusioncriteria
• Compliance:isthecriterioncomplianttotheCRMcompanyway/rules/legalaspects?
Measurement:ifoneormoreaspectsisansweredwithno;thesolutionisexcludedfromfurther
evaluationsteps.
• Degreeofcorporateculturefit:doesthesolutionfitthecorporateculture?
Measurement:ifoneormoreaspectsisansweredwithno;thesolutionisexcludedfromfurther
evaluationsteps.Corporateculturefitisaprerequisitefortheimplementationofanindicator.Ifthe
fitdoesnotexist,theindicatorisexcluded.
• Containerconcept:itisofsuchimportancethatitisnecessarytohaveintheCRMbusiness.Itneeds
tobereliable,itneedstobesafeanditshouldbeuserfriendlyetcetera.
2. Assignweights
Theweightsdistributedbetweentheevaluationcriteriavarybetweenveryimportant(weight:20),important
(weight:15)andrelevant(weight:10).Theassignedweightsarejustifiedintable4.
Criteria Weight Justification
Costs 15 Foracustomer,thecostsareimportant,butneverthemainreasonaprojectfailsoris
successful.Whenthecostsarethemainreasonforanimplementation,thedepartmentsales
disqualifiesthemandtheyarenottreated.
Speedofthesoftware 20 Thesoftwareneedstobequick,sothatthecustomerenjoysworkingwithit.
Predictability 20 Itneedstobeclearforthecustomerwhathecanexpectfromthesoftware,nosurprises.
Userfriendliness 10 Itisimportant,butitisnotofsuchimportancethatafirmisnotchosenbasedontheuser
friendlinessofthesoftware.Otherfactorsgetthepriorityabovethefriendlinessofthe
software.
Time 15 Timeisveryimportantforthecustomersatthestartofaproject,butduringtheproject,itis
lessimportant.
Accessibilityofthe
software
15 abroaditisimportant,butintheNetherlands,itislessimportant.Butitisgettingmoreand
moreessential.
Adjustability 20 Veryimportant,clientschoosetheCRMcompanybasedupontheirflexibilitytoimplementnew
toolsatalaterstage.
Reliability 10 Itisnecessaryforaproject;thisshouldbetackledbytheexclusioncriteria:containerconcept.
Table5:CriteriaoftheMCDManalysisandtheirappointedweights
Nowthatthecriteriaandweightsareclear,thefocusgroupisusedtodeterminewhatscoreanindicatorgets.
Thefocusgroupgivesscoresfrom0to100points(Figure3).Whenanindicatoristhebestinthatcategoryit
gets100points,whenitperformstheworstitgetszeropoints.
Figure4:assignedscorestothecriteriaoftheMCDManalysis
39
Fromtheinterviews,theindicatorsintable5areidentified.Theseindicatorsareimportantfactorstomeasure
thesuccessofCRMsoftware.ThebestandworstindicatorsareidentifiedbyusingtheMCDManalysis.The
indicatorscanbegroupedbytheirinterrelateddimensions:operationalbenefits(1,2,3,4),benefitsin
customerlifecycle(5,6,7,8)andbenefitsinperformance(effectively:9,10/adaptability:11,12/efficiency:
13).
KPI Explanation Keyareaofimprovement
1.Sales
management
Salesmanagementfocusesonthepracticalapplication
ofsalestechniquesandthemanagementofafirm'ssales
operations.Itwilldeliverastandardforthesalesprocess.
Toimprovethisareaacompanyshouldpursuita
reductionofcompanycostsandanincreased
effectivenessinrespondingtoclientrequest.Thiscan
beachievedbycustomerservice.Theresponsiveness
tocustomerinquiriesandtheefficiencyoftheCRM
implementationcanmeasurethesuccessofCRM.
Anotherinfluencerofasuccessfulimplementationis
amoreeffectivemarketing.Thiscanbedonebyusing
thedetailedcustomerprofileandagoodprediction
oftypeandtimingofthepurchases.
2.Campaign
management
Supportstheeffectiveplanning,creationandexecutionof
campaigndetails.
3.Customer
service
management
CRMofferscustomersservicesupportbecauseitrecordsall
transactionsandinteractionsandissuesrapid,appropriate
responsestocustomer’srequestacrossmultiplecontactpoints
4.Analysisof
client’s
database
Analysestheclientdatabase.Itrecordshistoricalcustomer
behaviour,anditsanalyticaltoolsofferhelpfulinsightsinto
customerpreferencesandbuyingintentions.
5.Customer
loyalty
Loyaltyisthebeliefofthecustomerthatyourorganization’s
productorserviceofferistheirbestoption.Itbestfulfilstheir
valueproposition.
CRMsoftwareproducesbenefitsbyimprovingthe
firm’sabilitytocapture,retain,satisfy,ensurethe
loyaltyof,attracttheshareofwalletofandrecover
customers.Thesebenefitscontributetoincreasing
customerlifetimevalueandcustomerequity.
6.Customer
satisfaction
Customersatisfactionmeasureshowproductsorservices
suppliedbyacompanymeetorsurpassacustomer’s
expectation.
7.Customer
shareofwallet
Share-of-walletisasurveymethodusedinperformance
managementthathelpsmanagersunderstandtheamountof
businessacompanygetsfromspecificcustomers.
8.Customer
recovery
Policiesorstrategiesusedbyacompanytoattract
previouscustomerswhohavestoppeddoingbusinesswiththe
company.
9.Market
share
Marketsharerepresentsthepercentageofanindustryor
market'stotalsalesthatisearnedbyacompanyoveraspecified
period.
Thiscanbemeasuredbythefirmsthathave
implementedCRM.Goodindicatorscanexistoutof:
effectiveness,efficiencyandadaptabilitytoward
customerneedsandthemarket.Effectivenessrefers
tosuccessinsaleseffortsandmarketsharegains
comparedwithcompetitors.Efficiencyisthe
differencebetweeneffectivenessoftheresourcesto
acquiresuccess.Adaptabilityrepresentsthe
10.Salesfrom
thetarget
market
AtargetmarketIsthegroupofcustomerswherethefirmhas
decidedtofocusupontheirmarketingeffortsandfocusontheir
marketingstrategy.
40
11.Adaptation
ofproducts
andservices
Adaptationofproductistheprocessofadjustinganotherwise
standardizedproductorserviceoffering.Thisisdonetomeetthe
needsandpreferencesofamarketorsetofconsumers.
successfulabilitytorespondovertimetochanging
conditionsandnewopportunitieswithcustomers.
12.Launchof
productsand
services
Introduceanewproductorservicetothemarket.
13.
Performanceof
applied
resources
Howefficientandwelldotheappliedresourcesperformatthe
firm.
Table6:overviewKPIsandexplanationfortheMCDManalysis
Tomeasurewhatscoresanindicatorgetsatoolisdevelopedtocalculatethescores(figure5).Thistoolis
availableinExcel.
Whenthescoresarecalculatedthebestandworstindicatorsarediscoveredbythefocusgroup.Withthis
conclusion,wecandecidetoleavetheindicatorfromthetestwhentheirscoresarebelowacertainlevel.
Figure5:Exceltooltocalculatethescoresperindicator
41
Appendix2:CRMsoftwaresuccessindicatorsCRMSoftwaresuccessindicators
Reference
1.Salesmanagem
ent
2.Campaignm
anagement
3.Customerservicem
anagement
4.Analysisofcustomerdatabase
5.Customerloyalty
6.Customersatisfaction
7.Customershareofw
allet
8.Customerrecovery
9.Marketshare
10.Salesfromthetargetm
arket
11.Adaptionofproductsand
services
12.Launchofproductsandservices
13.Performanceofapplied
resources
(Ahearne,Hughes,&Schillewaert,2007) X X X X X
(Al-Refaie,Tahat,&Bata,2014) X X X X
(Ang&Buttle,2006) X X
(Arman,2014) X X X X X X
(Buttle,2004) X X X
(Chang,Wong,&Fang,2014) X X X
(Chen&Chen,2004) X X X X X X X X
(Chen&Popovich,2003) X X X X
(Croteau&Li,2003) X X X
(Gustaffson,Johnson,&Roos,2005) X
(Hart,Hogg,&Banerjee,2004) X X X X X X
(Jalvagi,Martin,&Young,2006) X X X
(Jayachandran,Sharma,&Kaufman,2005) X
(Kim&Kim,2007) X X X X X X
(Kim,Suh,&Hwang,2003) X X X
(King&Burgess,2007) X X X X X
(Ko,Kim,&Woo,2008) X X X X X X X X X X X
(Lemon,White,&Winer,2002) X X X X
(Li&Mao,2012) X X X
(Lin,Su,&Chien,2006) X X X X
(McKim&Hughes,2001) X X
(McNally,2007) X
(Mithas,Krishnan,&Fornell,2005) X X X
(Mohammad,Mohammad,Vahedi,&Pournader,2011) X X
(Park&Kim,2003) X X X X X
(Parvatiyar&Sheth,2001) X X
(Reinartz,krafft,&hoyer,2004) X
(Rigby&Ledingham,CRMdoneright,2002) X X X X
(Rigby,reichfeld,&Schefter,AvoidhefourperilsofCRM,2002) X
(Ryals,2005)
(Verhoef,2003) X
(Wilson,Daniel,&McDonald,2002)
(Winer,2001) X
(zikmund,Mcleod,&Gilbert,2003) X X X
(Wang&Feng,2012) X X X X X X X X
Table8:MostrelevantindicatorsofCRMsuccessbasedonacopiedtablefromVenturini&Benito+newsourcesadded
42
Appendix3:KPIsintheliteratureReferenceKPI
(Kap
lan&Norton,200
1)
(Bau
er,200
4)
(CAtechno
logies,201
5)
(Intrafocus,201
4)
(StateofV
ictoria,201
0)
(Sha
rma,20
16)
(associates,20
07)
(Alwaer,20
10)
(Marr,20
14)
(Peterson,200
6)
(Kerzner,201
1)
(Marcus&
Dam
,200
9)
(Kerzner,201
1)
(Eckerson,Perform
ance
man
agem
entstrategies,
2009
)
Non-financialmeasures X X X
Measuredfrequently
X X X X X X X X
ActedonbytheCEOandseniormanagementteam
X X X X X X X
Understandingofthemeasurementandthecorrectiveactionrequiredbyallstaff
X X X X X X X X X
Tiesresponsibilitytotheindividualorteam
X X X
Significantimpact X X X X X X X X X X Xpositiveimpactonotherperformances
X X X X X
Basedoncompany’sstrategy,visionandmission
X X X X X X X X
Basedonvaliddata X X X X X XAgreeduponbeforehandandreflectcriticalsuccessfactorsontheproject
X X X X X
Table9:MatrixofKeyPerformanceIndicators(KPIs)intheliterature
43
0
1
2
3Reliability
Speedofthesoftware
Costs
Userfriendliness
Predictability
Time
Mobilitysoftware
Adjustability
Centralization
0
1
2
3Reliability
Speedofthesoftware
Costs
Userfriendliness
Predictability
Time
Mobilitysoftware
Adjustability
Reliability
0
1
2
3Reliability
Speedofthesoftware
Costs
Userfriendliness
Predictability
Time
Mobilitysoftware
Adjustability
Salesimprovement
0
1
2
3Reliability
Speedofthesoftware
Costs
Userfriendliness
Predictability
Time
Mobilitysoftware
Adjustability
Costs
0
1
2
3Reliability
Speedofthesoftware
Costs
Userfriendliness
Predictability
Time
Mobilitysoftware
Adjustability
Insightownprocess
Appendix4:Customersegmentation
Figure6:Overviewsegmentsandcorrespondingcriteriaandwhatthefocuspointsforsegmentcanbe.
Appendix5:LibrarytheCRMcompany
KeyperformanceindicatorsKPIsarea
setofmeasurementsfocusingon
thoseaspectsoforganizational
performancethatarethemostcritical
forthefutureandcurrentsuccessof
theorganization.Theseindicatorsare
obtainedfromthemodelofVenturini
&Benito(2015).
Performanceindicators(PIs)indicateswhatneedstobedonetoimprovethe
performanceofthefirm.PIsgiveanindicationoftheperformanceofabusiness
unit,ortheorganization.
Source(ofPIs)thatindicates
whichPIoperationalizetheKPI.
Sales
Salesfromthetargetmarket Howmanyproductsaresoldtocustomersinasalesperson'sterritoryascompared
withatargetquotathatissetatthebeginningoftheyear?
Ahearne,Hughes&Schillewaert
Arethedifferentcustomersegmentsapproacheddifferently? Siebum,30-11-2016
Whatisthecrossupsellingrateofproductsandservices? Hart,Hogg&Banerjee
Howmuchtimedidyouspendonaprojectversusthesuccessrate? Lubbers,30-11-2016
Marketshare Whatistheshareofcustomer?Referstothepercentageofanindividual
customer'spurchaseofaproductthatisasinglebrand.
Buttle
Whatisthecompetitorscore? Dannenberg,30-11-2016
Howmanycontactmomentsdotheemployeeshave? Siebum,30-11-2016
Hastheleadconversionimproved? Voortman,05-12-2016
Whataretheearningspershare? Buttle
Whichsalesemployeesattractnewcustomers? Claase,30-11-2016
Customershareofwallet Havewemaintainedourshareofcustomerspending? Chang,Wong&Fang
Whatistotalcostofownershipofthesoftware? Kunst,02-12-2016
Whatisthecustomerlifetime? AliShafia,Mazdeh,Vahedi,
Pournader
Whatiscustomerconversion?ConversionRatesarethepercentageof
prospectivecustomerswhotakeaspecificactionyouwant.
Siebum,30-11-2016
Salesmanagement Theproductivitymeasureisexpressedasthenumberofcallsmadeinanaverage
weekdividedbythenumberofhoursasalesrepresentativeworksinanaverage
week?
Ahearne,Hughes&schillewaert
Whatarethesalespercustomer? Ahearne,Hughes&schillewaert
CanthecustomersbedividedinA:best,B:Ok,C:notinterestingcustomers? Kunst,02-12-2016
Howarethedifferentcustomersegmentsapproached:A:directcontact,B:Phone Kunst,02-12-2016
45
call,C:E-mail.
Howmanycustomermomentsarethereattheendoftheorder? Siebum,30-11-2016
Howmanyloss-makingcustomersaredropped? TerBeek,29-11-2016
Whatarethemarketingcosts? Chen&Chen
Whatisthenumberofcustomers? Buttle
Whatarethenetsalesperemployee Ahearne,Hughes&schillewaert
Whatisthefrequencyofthecontentupdates? Kim,Suh&Hwang
Launchofproductsandservices Whatisthetotalcostofpromotioncampaigns? Chang,Wong&Fang
Whichtouchpointsaremostapplicabletothecustomers? Dannenberg,30-11-2016
Whatpercentageofcustomersopenthee-mailofthenewproduct? Dannenberg,30-11-2016
Aretheremorequestionsaboutnewproducts? Dannenberg,30-11-2016
Customerrecovery Howmanycustomersareacquired? Chang,Wong&Fang
Marketing Howmanycustomersareblockedbasedontheirbusinessandhistory? Claase,30-11-2016
Whatisthecostperacquiredcustomer? Chang,Wong&Fang
Reducedcostofnewcustomeracquisition? Chang,Wong&Fang
Whatisthevalueoftheacquiredcustomer? Chang,Wong&Fang
Customersatisfaction(organization
wide)
Themostcommonwayofquantifyingsatisfactionistocomparethecustomer’s
perceptionofanexperience,orsomepartofit,withtheirexpectations.Thisis
knownastheexpectations–disconfirmationmodelofcustomersatisfaction.
Buttle
WhatistheNetPromotorScore? Siebum,30-11-2016
Whatistheservicelevelagreement? Voortman,05-12-2016
Howhappyarethecustomers?(survey) Dannenberg,30-11-2016
Whatisthereliabilityoftheservice? Chen&Chen
Whatistheresponsivenessoftheservice?Providingaccesstoupdatedand
integratedcustomerinformationtotherelevantemployees.
Jayachadra,Sharma&Kaufman
Customerloyalty Behavioralloyaltyismeasuredbyreferencetocustomerpurchasingbehavior.
Loyaltyisexpressedincontinuedpatronageandbuying.
Buttle
Isthecustomerstillactive? Lemon,White&Winer
Monetaryvalueofcustomerpurchases? Kim,Kim
Whatisthechurnofthecustomer? Terbeek,29-11-2016
Upsellingofproductsandservices? Terbeek,29-11-2016
Crosssellingofproductsandservices Terbeek,29-11-2016
46
Numberofpurchasesinthegivenperiod Chang,Wong&Fang
Timeelapsedsincelastpurchase? Buttle
Campaignmanagement Whatarethecustomersatisfactionlevels? Chang,Wong&Fang
Whatistheaveragecustomertenure? Buttle
Howmanynewcustomersareacquired? Buttle
Whatistherevenuegrowth? Buttle
Whatistheleadsource? Siebum,30-11-2016
Whatarethecustomerretentionrates? Buttle
Whatarethecustomeracquisitioncosts? Buttle
Performanceofappliedresources WhatistherateofreturnbyusingCRMsoftware? Kim,Suh&Hwang
Aretheinternalcostsreduced? Chen&Chen
Averagetimespendonacustomer? Claase,30-11-2016
Howlongisacaseonaverageopen? TerBeek29-11-2016
Whichemployeeclosesthemostcases? TerBeek29-11-2016
Averagedeliverytimeafterorderfulfilment? Kim,Kim
Adaptionofproductsandservices
(sales&marketing)
Hastheproductdiversitychanged? Chen&popovich
Whatistheacceptationgradeofthesoftware? Siebum,30-11-2016
Whatisthecompletenessofthedatabase?Whichmandatoryfieldsarefilled? Kunst,02-12-2016
ServiceSupport
whatistheintegrityofthedatabase?Inthedropdownmenu;Whichfieldsare
displayed?
Kunst,02-12-2016
Whatisthevalidityofthedatabase?Whomofthecontactsareactiveand
available?
Kunst,02-12-2016
Howdetailedistheproductinformation? Kim,Suh&Hwang
Timelinesssalesinpopularproduct? Kim,Suh&Hwang
Analysisofcustomerdatabase(sales&
marketing)
Whatisthedataquality?Andisthereafilteringoptiontoeliminatebadand
duplicatedata?
Chen&popovich
HowmuchdataisenteredinSugar? Pierweijer,06-12-2016
Isthecustomertargetingimproved?Acutetargetingandprofilingofcustomerto
betteraddresscustomerrequirements
King&Burgess
Whichproductsareboughtbywhichcustomers? TerBeek29-11-2016
Ishistoricalbehavioravailable? TerBeek29-11-2016
47
Customerservicemanagement Howdothevariouselementsoftheproductandservicedeliverysystemwork
together?
Buttle
Responsetimetocustomerinquiry? Chang,Wong&Fangprod
Whatistheeffectivityofthecustomerservicedepartment?What%ofcasesis
solved?
Kunst,02-12-2016
Numberofdailycustomerinquiries? Hart,Hogg&Banerjee
Numberofresponsechanneltocustomerinquiry? Hart,Hogg&Banerjee
Table10:LibrarytheCRMcompany:KPIsandPIsthatelaboratesthemplustheirsources.
48
Appendix6:Focusgroupscores
49
50
Figure7:CombinedscoresofthefocusgroupoftheMCDManalysis
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