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

a r t i c l e i n f o 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. In the contemporary business marketplace, firms must make a great deal of effort to compete with rival companies. In order to quickly respond to customer requirements and further establish favorable relationships , firms develop customized products or services to create different levels of value for individual customers. Based on this market trend, customer relationship management (CRM) has been widely recognized as an important business approach to build long term, profitable relationships with specific customers [12,30]. CRM is a set of processes enabling systems to support a business strategy. It is comprised of four major dimensions, including customer identification, attraction, retention, and development of lifetime value based on serving customers better and developing sustainable relationships [30]. Wang pointed out that development of close and long-term relationship with customers and turning them into loyal customers are important aspects of successful marketing because customers are crucial assets that firms must learn from and manage well for full competitive value [48]. However, whether long-term customers can bring profit to firms is always a paradox inherent in CRM implementation. Coltman et al. pointed out that the relationship between IT investment and firm performance can be either negative or positive [12]. This is very dependent on how firm performance is defined. In the context of CRM, there are various metrics used to define firm performance , including financial [31], the elements of the Balanced …