Paguio, Rafael (2005) Deploying customer relationship management (CRM) applications : perceived value in the hygiene services industry in Singapore. Other Degree thesis, Victoria University.

Abstract

In recent years, the use of information and communication technology for business organisations has expanded from the traditional back office functions like logistics and finance to front office customer-facing functions . Demand thus emerged to automate sales, marketing and customer service functions, leading to the development of information technology software products collectively called CRM (customer relationship management) applications. CRM applications create value by facilitating efficient company processes and enabling quicker, more flexible and personalised services that could potentially increase customer satisfaction. In business services settings, more satisfied customers see better value with their service providers and consequently make a stronger commitment to their relationship. Keeping customers and even growing their purchases are primary business objectives in today's competitive environment. The perceived value of deploying CRM applications depends on a subjective comparison of benefits derived, costs incurred and availability of alternatives for both service providers and customers. Thus, different needs and contexts play a role in determining the extent of perceived value. This thesis examines the potential value of CRM applications from the perspectives of both the company and customers in a business services setting-- specifically, the hygiene services industry in Singapore, where CRM applications are yet to take root. Semi-structured in-depth interviews were conducted among staff of the leading service provider company as well as with a broad range of industry customers. The results of the study show that operational and efficiency requirements of sales and service functions, rather than customer based considerations, make up the providers' motivators. For customers, the main benefit sought was provider preparedness to deliver reliable and responsive service, particularly for exceptional service issues. The level of IT use in the customers' work context appeared to have the most influence on the attractiveness of CRM-enabled service possibilities. Potential for increased commitment to the service provider as a result of introducing CRM services was also noted, and this was particularly evident where no major issues existed with the current service, and with customers who exhibited an efficiency-driven, business-like posture in relating with the service provider. Generalisability of findings, theoretical contributions and implications for further research and management practice are offered.

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