Investment Efficiency Evaluation of Customer Relationship Management System: Theoretical and Practical Aspects of Return on Investment Methodology Application
2008
Jasilionienė,Regina | Tamošiūnienė,Rima
Customer relationship management (CRM) has been increasingly adopted by companies as the core of IT – driven business strategy and firms have started to invest in CRM. However, the rate of successful CRM implementations is about 30%. Many enterprises pursue expensive CRM initiatives without first understanding of the challenges and costs involved. This approach often results in CRM projects that fail to meet measurable benefit objectives. Evaluating costs and benefits associated with CRM systems acquiring and implementation and applying financial measurement methodologies can help a company make the right CRM investments solution and build a compelling justification for its CRM project. Return on investment (ROI) financial measurement methodology, its theoretical and practical aspects are analyzed in this study. Authors of this paper provide a detailed list of CRM cost categories, which can assist an organization to easily calculate its CRM system acquisition and ongoing spending. Also the authors of this paper present survey results of CRM system costs and investment efficiency evaluation in Lithuanian companies.
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