A Strategic Framework for Customer Relationship Management

TLDR

CRM is defined through three alternative perspectives and is best approached as a cross‑functional, process‑oriented strategy at the organizational level. The authors aim to develop a conceptual framework that expands understanding of CRM and its contribution to customer and shareholder value. They construct a framework built on five cross‑functional CRM processes—strategy development, value creation, multichannel integration, information management, and performance assessment. The resulting process‑based framework synthesizes diverse CRM concepts, offering deeper insight into successful CRM strategy and implementation.

Abstract

In this article, the authors develop a conceptual framework for customer relationship management (CRM) that helps broaden the understanding of CRM and its role in enhancing customer value and, as a result, shareholder value. The authors explore definitional aspects of CRM, and they identify three alternative perspectives of CRM. The authors emphasize the need for a cross-functional, process-oriented approach that positions CRM at a strategic level. They identify five key cross-functional CRM processes: a strategy development process, a value creation process, a multichannel integration process, an information management process, and a performance assessment process. They develop a new conceptual framework based on these processes and explore the role and function of each element in the framework. The synthesis of the diverse concepts within the literature on CRM and relationship marketing into a single, process-based framework should provide deeper insight into achieving success with CRM strategy and implementation.