A study on developing CRM scorecard

Abstract

As more firms embrace CRM as a core business strategy, it is getting more important to assess firms' CRM readiness and performance for diagnosing, guiding, managing, and evaluating their current CRM practices. Previous CRM studies have been limited to extracting a few success factors or focus only on specific implementation methodologies without any theoretical underpinning. In this paper, we suggest a performance measurement framework called CRM scorecard as an integrative organizational artifact to diagnose and assess a firm's CRM practice. The CRM scorecard was developed through comprehensive literature review and in-depth interviews with CRM practitioners, with specific objective and subjective instruments added to measure corporate CRM capability and readiness. Additionally, we conducted an analytic hierarchy process (AHP) analysis to prioritize the evaluation factors in the CRM scorecard. To illustrate the applicability of the proposed CRM scorecard, we apply the artifact to a consumer bank, which is well known for an exemplary CRM strategy in Korea.