eThesis - School of Business electronic theses

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Abstract

Author: Mari Aalto Title: Evaluating the benefits and ROI of a comprehensive CRM service - Case Itella Asiakkuusmarkkinointi Supervisor: Merja Halme Date: 27.4.2010

Objective of the study: Two distinctive marketing trends are rising: the increasing customer-centricity and the demand for marketing accountability. One way to rise to the challenge is to introduce a Customer Relationship Marketing (CRM) service in the business strategy and operations. The objective of this study is to examine how the return on investment of a comprehensive CRM service could be evaluated and of which elements the return consists of.

Research method used: The study uses a constructive approach to find a working solution for the research questions. The problem is approached via a literature review, which is the basis for identifying the structure and elements for a ROI calculation tool. The tool is then tested on a real-life case.

Summary of the findings: The benefits of analytic CRM were identified and a theoretical framework for transferring the benefits into customer and financial effects was suggested. In the framework a comprehensive CRM service affects the ROI both internally by decreasing costs in internal processes and externally by increasing revenues from outside customers. This is enabled through three means: by increasing the effectiveness, the efficiency and the competitive advantage of marketing operations. This framework is presented on the operational level by a spreadsheet ROI calculation tool, which was then tested successfully on a real-life company case.

Key words: Return on investment, ROI, customer relationship marketing, customer relationship management, CRM, customer experience management, constructive approach

Language: English