Business alignment in the CRM domain: predicting CRM performance

In this paper we present a framework that aims to answer the central question why some organizations are successful in the CRM domain, while others are not. The framework is built on two foundations. The first claims that an organization’s CRM performance is positively affected by aligning CRM activities according to five business dimensions: strategy, monitoring and control, organization and processes, employees and culture, and IT. Secondly, it is hypothesized that CRM performance is additionally and positively influenced by integrating four CRM areas: CRM strategy, customer insight, customer contact, and marketing. This twofold hypothesis is tested empirically using data from thirty questionnaires that were completed by an equal number of Dutch marketing, sales and account managers. All respondents had experience with the concept of CRM and represented a large variety of organizations according to size and sector. Several construction methods are applied in order to operationalize the concept of CRM alignment and performance. Bivariate analysis supports the hypothesis. We conclude that the twofold alignment of CRM activities is a critical success factor for organizations embarking on CRM initiatives.