Curel : A Scale For Measuring Customer Relationship Management Effectiveness In Service Sector | Rajnish Jain, Sangeeta Jain & Upinder Dhar

Theories of exchange have taken a paradigm shift from transactional exchange to relational exchange in service business. Measuring organizational performance is imperative for evaluation of CRM implementation. Traditional financial measures such as sales volume and revenue, ROI, ROA, profitability, market share, transaction cost, expected contribution margin and cash flows are commonly used to evaluate performance of CRM efforts. These techniques have certain limitations in terms of evaluating only quantitative parameters and often fail to give an insight into the over all performance of the organization. Such metrics need to be supplemented by appropriate non-financial measurements. Present research has been carried out to develop and standardize a scale for measurement of Customer Relationship Management (CRM) effectiveness. It incorporates reported variables governing CRM activities in business organizations covering all possible dimensions of relational exchange. The scale is empirically tasted for its reliability and validity on 492 customers belonging to five different service industries. Eight factors governing CRM effectiveness have been identified. The study has also brought forth various dimensions of customer relationships and provides implications for researchers and practitioners.