The effects of customer relationship management relational information processes on customer-based performance

Abstract

This study investigated the influence of the completeness of CRM relational information processes on customer-based relational performance and profit performance. In addition, interaction orientation and CRM readiness were adopted as moderators on the relationship between CRM relational information processes and customer-based performance. Both qualitative and quantitative approaches were applied in this study. The results revealed that the completeness of CRM relational information processes facilitates customer-based relational performance (i.e., customer satisfaction, and positive WOM), and in turn enhances profit performance (i.e., efficiency with regard to identifying, acquiring and retaining, and converting unprofitable customers to profitable ones). The alternative model demonstrated that both interaction orientation and CRM readiness play a mediating role in the relationship between information processes and relational performance. Managers should strengthen the completeness and smoothness of CRM information processes, should increase the level of interactional orientation with customers and should maintain firm CRM readiness to service their customers. The implications of this research and suggestions for managers were also discussed.