Determinants of Performance in Customer Relationship Management –

The management of customer relationships has become a top priority for companies in the last years. Despite this, little is known about the factors of successful CRM implementations and the role of information technology in this context. This study provides three models for the explanation of CRM performance separated according to the customer relationship phases of initiation, maintenance, and retention. In particular, we analyze the relationship between CRM technology, CRM technology usage and CRM performance. In addition, we identify the drivers that affect implementation success for each phase the most. 1. Purpose of the research In recent years, the management of customer relationships has become a top priority for companies. Sales of CRM implementations in the German market grow from 2005 to 2009 with an average rate of 4.7 % (IDC 2005). Despite the growth rates, practitioners report high implementation failure rates. For example, it is reported that 46.5 % of all implementations in the German market go beyond the budget estimates and 60.5 % off all implementations beyond the estimated timeframe (Frank et al. 2002). Only 10 to 20 % of all implementations meet expectations (Martin 2002). Although there has been much discussion concerning implementation challenges and the advantages of CRM technology, little empirical evidence of the factors that affect economic performance has emerged (Nairn and Bottomley 2003). For example, Reinartz, Krafft and