CRM Performance Evaluation Process
Without a proper performance metrics to evaluate CRM efforts, it would be hard to make objective decisions regarding continuation, modification, enhancement, or termination of CRM programs.
If co-operative and collaborative relationship with the customers is treated as an intangible asset of the firm, its economic value add can be assessed using discounted future cash flows estimates. Here the term relationship equity comes in where you measure the intangible assets of the firm.
Another global measure used by firms to monitor CRM performance is the measurement of relationship satisfaction. By measuring relationship satisfaction, one could estimate the propensity of either party’s inclination to continue or terminate the relationship. Such propensity could also be indirectly measured by measuring customer loyalty.
Without a proper performance metrics to evaluate CRM efforts, it would be hard to make objective decisions regarding continuation, modification, enhancement, or termination of CRM programs.
If co-operative and collaborative relationship with the customers is treated as an intangible asset of the firm, its economic value add can be assessed using discounted future cash flows estimates. Here the term relationship equity comes in where you measure the intangible assets of the firm.
Another global measure used by firms to monitor CRM performance is the measurement of relationship satisfaction. By measuring relationship satisfaction, one could estimate the propensity of either party’s inclination to continue or terminate the relationship. Such propensity could also be indirectly measured by measuring customer loyalty.