THE IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT

ON COMPANY PERFORMANCE IN THREE SEGMENTS

Ismi Alawiyah1
Putri Nadila Humairoh2
1,2
Accounting Masters Program, Faculty of Economics, Gunadarma University
1,2
{alawiyahismi.a, putri.n.humairoh}@gmail.com

Abstract

Application of modern CRM as a kind of business intelligence successfuly become

another resources factor which can improving company performance. The company's
observed performance are financial performance, marketing performance, and
operational performance. This study used literature review analyzing and elaborating the
results of literture, books, and previous research. This research using literature review
method and analyzed about twenty previous journals, supported by some of literature and
books. Based on the result of the study, utilization of CRM implementation effectively and
efficiently will increase companies performance in significant, specifically in financial,
marketing, or operational performance. From all previous journal observed, the most
dominant journal is about significant effect of CRM on marketing and financial
performance.

Keywords: CRM, financial performance, marketing performance, operational

performance.

INTRODUCTION needs and have developed products to

achieve them. If they are completely
The sales concept or so-called pro- satisfied, they will return to our product
duct orientation is focuses solely on the or service many times. We are referring
product. By using available resources, the to how to do this business as a customer
company develops the best products it orientation (Sharma 1998, p. 79 – 80).
has, then tries to find a group of people Development of technology and in-
who might be interested to buy. This is formation nowadays has impacted glo-
done through a widespread promotional bally and transformed business, commer-
and sales strategy aimed at convincing ce, and industry rapidly. Business mana-
people to buy the product. The more gement processes change from service,
companies sell, the more money you earn. data management, to the creation of a
Thus, the development of the concept of business information system as a strategic
sales comes from production to product business management tool. Overall, the
into demand for profit. However, con- business model has changed from a
sciously or unconsciously, the emphasis traditional hierarchical control into more
of business focus has changed. A hundred customers oriented via e-business models
different models, colors, and product based on information systems networks.
choices are available today to meet cus- Through this new business model, the
tomer needs and wants. This choice same product is sold with the support of
reflects the marketing concept, and this is more detailed information about cus-
clearly customer-oriented. Customers will tomers able to drive business success and
be satisfied if we have recognized their add a sustainable competitive advantage.

132 Jurnal Ekonomi Bisnis Volume 22 No.2, Agustus 2017

This is due to the company being able to customer behavior for a better strategy
deliver products differently from service was actually applied the business intelli-
as well as product differentiation which gence in it, so CRM just like business
further adjusts customer needs & wants intelligence itself.
(Gunasekaran & Sandhu 2010, p.v). The intention of this research is to
The more developed the internet- explain the impact of CRM on company
based business model and business con- performance in three segments. These
cern on customers, the shift in business drive the following research questions: Is
model becomes more visible. Customer there impact of CRM on company per-
Relationship Management (CRM) has formance? Is there impact of CRM on
evolved from being merely a customer financial performance, marketing perfor-
data collection point to the company's mance, and operating performance?
overall support and unified process for
the entire customer relationship process. RESEARCH METHOD
The CRM system is supported by IT-
based customer ratings and statements To meet the objectives of this study,
regarding future potential customers which explains the impact of CRM on
(Auge-Dickhut et al. 2016, p. xvi). company performance across three
According to Habul, Aida et al segments, an extensive literature review
(2010), appliance of CRM combined with has been conducted. We use textbooks
business intelligence helped companies to and journals as a source of information,
raise customers loyalty by provides more the majority are sources with interna-
detail and complete customer information tional publications. In addition, some
which is useful in making a more pre- international databases selected as data
cision of business and marketing deci- sumbe also use papers related to CRM.
sions. The CRM with BI system could This database is selected because it
provide a holistic approach to customers, covers a wide literature coverage on
help the management to respond cus- various issues related to marketing and
tomers and serve them better, also scale the business field. Our total uses 34
up the performance, more specific is in sources of literature, consisting of twenty
sales. This function shows us that in journals and fourteen textbooks. Our
modern business, CRM couldn't con- journal analysis results obtained eighteen
sidered separately from Business Intelli- corresponding journals and supported the
gence, it's a part of BI. CRM impact analysis on corporate per-
Taneja (2015) done a study research formance (financial, marketing, opera-
with the result that CRM provides more tional sectors), then we analyzed the per-
detail information about the transactions formance most affected by CRM.
nature which is useful to serve better so
the company can reach new buyers and LITERATURE REVIEW
manage relationship with loyal cus- CRM Definition
tomers. By improving the service quality CRM can be defined as an entire
and system, the company can make discipline covering all the functions that
customers satify whilst they improve directly touch customers throughout their
performance, specifically profitability. lifetime with your company and it focuses
This system is like a tool of business on strategic impacts rather than opera-
intelligence which is shifting from a tional impacts. In addition, CRM is also a
product-oriented model to a customer- collection of information, processes, tech-
oriented Model. The CRM system which nology, and strategic people to manage
can help management in predicting customer relationships with your com-

Alawiyah, Humairoh, The Impact ... 133

pany-including marketing, sales, ser-vice, customer value management. If the CRM
and support – throughout the cus-tomer program has been carefully planned and
lifecycle. The definition of CRM is broad successfully implemented, it promises
enough and covers a lot, but is limited to many benefits for the customer and the
activities that occur in customer-facing business/ company itself (Chen 2011, p.
functions such as marketing, sales, 119).
customer service, and product support Measuring CRM performance is a
(Kincaid 2003, p. 41 – 42). challenge because it is difficult to define
According to Wong (2011), causal connections between CRM
explained that in ideal, CRM will help activities and the company’s performance
companies to understand their customers results. These difficulties result from the
deeper, then apply this information and manifold relationships between functional
knowledge to decide a better business areas such as financial, marketing, sales
strategy. A right utilization of CRM could and operating. In addition, many CRM
help companies scale up their business. benefits are of a qualitative nature and it
Elucidated that CRM is more than just a is therefore difficult to prove their
marketing or customer services, but in- influence on financial results. Perfor-
cludes methodologies, software abilities, mance measurement in CRM can either
also internet capabilities which help a the focus on calculating the monetary benefit
company to manage relationship with its of CRM investments or measuring and
customers with a directed and structured managing the success of CRM activities.
way (Thierauf 2011, p. 239). In this study, we will concern for both.
CRM as the practice of analysing According to Alipour (2013), measuring
and utilizing marketing databases and monetary and successful of CRM
leveraging communication technologies activities approach indicates that CRM
to determine corporate practices and has impact on company performance in
methods will maximize the lifetime value three segments. Table 1 shows some
of each individual customer. Conven- studies which are researching about CRM
tional communication processes are often effect on financial, marketing, or ope-
time delayed, e-CRM allows organiza- rating performance. Financial
tions to always operate in real-time and
more than that interaction with customers Performance
are transparent so that organizations are According to Manurung (2010, p.
able to draw conclusions on customer 146 – 148), financial performance, in
behaviour and measure the success of general, are compiled by four indicators
activities. CRM helps to accelerate the that are operating cost, cash flow,
revenue and profit growth of firms. Many operating revenue, and profit. Financial
owners and/or managers have stabilized performance will be shown at financial
or grown their firms by viewing their performance report which is should
investment in CRM as a main priority. completed with revenue, profit or loss
Firms realize that in order to remain from operational activities, financial cost,
competitive, they need to build rela- profit or loss from equity activities, and
tionships with their clients. stocks that show the performance of
company in making money by selling
Performance Measurement of CRM products/ services.
Customers are the basic source of
business, so the foundation of CRM is

134 Jurnal Ekonomi Bisnis Volume 22 No.2, Agustus 2017

 Tabel 1. Studies about CRM to Three Segment
Authors Company Performance In Three Segments
Financial Marketing Operating
Performance Performance Performance
Jain, Y and Petel, Neetu - - ✓
(2016)
Gujrati, Rashmi (2016) ✓ ✓ -
Santouridis, I and ✓ - -
Tsachtani, E (2015)
Mozaheb, Amir (2015) ✓ ✓ ✓
Shafique, Muhammad - ✓ -
Nouman (2015)
Mohamad, S.H (2014) ✓ - -
Krishnan, Vijaykumar ✓ - -
(2014)
Mohamad (2014) - ✓ -
Vahdati, Zohre (2014) - ✓ -
Namjoyan, Mahsa - ✓ -
(2013)
Kim, Hyung Su (2012) - ✓ -
Woodcock, Neil (2011) ✓ - -
Dutu, Cristian and - ✓ -
Halmajan, Horatiu
(2010)
Ang, Lawrence and ✓ - -
Buttle, Francis (2006)
Acker, Olaf (2011) ✓ ✓ ✓
Onut et al. 2007 - - ✓
Opara (2016) - - ✓
Shavazi (2013) - ✓ -

Financial performance is one of the The liquidity ratio is useful to know

most important criteria in investment the company's ability to pay off the
decisions. In business investment, finan- short-term debt / liabilities.
cial information and legal counsel are c. Activity Ratio
useful for calculating how the other The activity ratio shows the company's
actors' historical performance, elsewhere, performance capability in managing
so as to predict its future performance. inventories and accounts receivable.
(Hershman and Mazero 2008, p. xxi). d. Efficiency Ratio and Effectiveness of
According to Kuswadi (2008, p. 5 – Use and Data Costs
7), there are five types of financial This ratio is commonly referred to as
performance analysis: the ratio of costs to sales revenue. This
a. Profitability Ratio ratio can be a benchmark of efficiency
This ratio describes the company's and cost effectiveness of the use of
ability to generate profit relative. What funds.
is meant by Relative in this definition e. Solvency Ratio
is that profit is not only measured from The ratio is useful for representing a
the sum because sometimes big profits company's ability to pay long-term
do not show actual profitability. Re- liabilities.
venue, financing, and capital are the
benchmarks of profitability. Marketing Performance
b. Liquidity Ratio Based on Neely (2002, p. 1), deve-
lopment of marketing performance

Alawiyah, Humairoh, The Impact ... 135

assessment began with the marketing such as GPM, NPM, OPM, pretax profit
productivity paradigm and move on to margin, corporate tax to turn over ratio,
illustrate which expanded conceptions of dividend payout ratio.
marketing outputs and inputs, particularly
in the distinction between marketing DISCUSSION
activities and assets. This expansion will
be useful to measures of the marketing Table 2 is the key finding for the
health in the company, such as market various authors which discusses about the
orientation, customer satisfaction, cus- impact of CRM on company perfor-
tomer loyalty, and brand equity. The mance.
conclusion of that contribution examines
current challenges to the accurate measu- The Impact of CRM on Financial
rement and understanding of marketing Performance
performance. Journal by Ang (2011), showed an
In essence, the blueprint of marketing increasing of financial performance in
performance is a story about the con- company that applied CRM software with
vergence of marketing talents, techno- a variative satisfication scale. From their
logies, strategies, and opportunities to sample companies, service company is a
build performance-based organizations. dominant sector which get the benefit
In this case, a commitment to grow as a from CRM implementation rather than
marketer and a business is really needed others. Even though, there are no
if it is to succeed. Consumers are significant gaps of satisfaction of CRM
increasingly confiscating traditional implementation effect on ROI between
marketing-based interruptions. Marketers service and non service companies, both
must create a more personal and engaging got advantageous from it. The study also
experience to attract, convert, and satisfy found that company with an intelligent
customers. Use these performance laws to application of CRM software can yield
spur change The optimization of mar- improvements in business performance.
keting performance within an organi- In a detail, this study found that
zation is useful in exceeding ROI expec- almost 40% companies in Australia alrea-
tations and outperforming the compe- dy implemented CRM software to sup-
tition. Some ways that can be pursued for port their business, but not exactly the
marketing performance is to align same for three purposes, namely acqui-
expectations and potential, commit to sition, retention and development of cus-
core strengths, and manage by all means, tomers. This research also found that as
etc. (Roetzer, 2014) one of CRM proxies, customer retention
is significantly better in increasing firm
Operating Performance value and company performance than the
Operational performance refer to results from alternative strategies, in-
the performance of human resources, cluding improvement in margin, reduc-
companies, and ethics in connection with tion in customer acquisition cost, also
measurement and indicators of effec- adjustments to the discount rate or cost of
tivity, efficiency, and accountability. This capital. Next, the result shows that by
performance can be measured at the unit using CRM software correctly, company
work, play process, also at the organi- could increase ROI as a representative
zational level (Haris 2005, p. 197). Based from financial performance. CRM could
on Lubis (2010, p. 209 – 210), opera- affects financial performance in signi-
tional performance has some benchmark, ficant.

136 Jurnal Ekonomi Bisnis Volume 22 No.2, Agustus 2017

 Table 2. Selected Finding from Literature
Authors (year) Significant Findings
Jain, Y and Petel, Result from this journal, there is relationship between CRM to productivity and
Neetu (2016) customer retention.
Gujrati, Rashmi The result shows that high level services to customer and strong communication
(2016) among employees contributes in enhance marketing performance.
Santouridis, I and CRM has a strong effect on the profitability of an organization.
Tsachtani, E (2015)
Mozaheb, Amir Researched SMEs have a low attention to the market so they can't reach customer's
(2015) satisfication and the performance never be maximum. The result proved that there
are a relationship and impact from CRM on SME's performance (financial,
marketing, and operating performance).
Shafique, The ability of a customer relationship management (CRM) has a positive
Muhammad relationship with organizational performance, that if the ability to upgrade customer
Nouman (2015) relationship increases then automatically increased organizational performance.
Mohamad, S.H This journal proposed a conceptual suitable model of implementations of CRM
(2014) practices that specifically explains Key Customer Focus, Knowledge Management,
Relationship Marketing, Technological CRM Resources has impact on
organizational performance.
Krishnan, The more effectively and efficiently the company uses CRM technology, the higher
Vijaykumar (2014) the increase in sales.
Mohamad (2014) CRM has a strong effect on marketing process of an organization.
Vahdati, Zohre CRM strategy has a positive and significant effect on marketing relationship and
(2014) then leads to increase the effect on business performance.
Namjoyan, Mahsa There is effect of customer relationship management (CRM) on the marketing
(2013) performance significantly. CRM organization is significantly affect marketing
performance, become the need for employees to have flexibility in responding to
customers and provide the service. CRM-based technologies have a significant
effect on the performance marketing, so it can help make a specific decision based
on the data of each customer.
Kim, Hyung Su CRM strategy has a positive and significant effect on customer equity drivers.
(2012)
Woodcock, Neil CRM has a positive and significant impact to deliver financial benefits to
(2011) companies in every sector
Jain, Y and Petel, Result from this journal, there is relationship between CRM to productivity and
Neetu (2016) customer retention.
Gujrati, Rashmi The result shows that high level services to customer and strong communication
(2016) among employees contributes in enhance marketing performance.
Dutu, Cristian and CRM management has an impact on maintaining relationships with customers
Halmajan, Horatiu helping the company to have information useful in decision making in order to
(2010) increase customer value and reduce costs.
Ang, Lawrence and Companies that do employ CRM software are generally satisfied with their return on
Buttle, Francis investment (ROI). Using CRM software result in more cost-effective marketing.
(2006)
Acker, Olaf (2011) This journal has significant effect on financial, marketing, and operating
performance.
Onut et al. 2007 CRM has a positive and significant impact to satisfaction customer and market
share.

Journal Acker (2011) also revealed CRM as a long term investment which
a study research that CRM could affect will helps company increasing financial
on financial performance in significant. In performance.
detail, the research shows that in the Based on Mozaheb (2015) had done
mature stage, CRM implementation will a research about CRM effect on SMEs
influenced number of ROI. That indicated performance. According to their obser-

Alawiyah, Humairoh, The Impact ... 137

vation industries, moreover SMEs are not downfall of an organization. Management
really in touch with their customer, of individual customer relations results in
although in new business era nowadays, it enhanced customer loyalty, customer
is important to has detail information satisfaction, thus increasing the profita-
about customer behaviour and transacton bility of an organization. Customer satis-
pattern. By this study, CRM proved can faction has a positive impact on firm's
helps company to understand customer profitability due to a number of reasons.
deeper, improve their service, and make a First, customer satisfaction enhances cus-
better innovation because they maximize tomer loyalty and influences customers‟
technology in maintain relationship with future repurchases intentions and be-
the customers. Implementation of CRM haviors. When this happens, the profita-
softwCare in industries have significant bility of a firm would increase. Second,
role in the data gathering and analysis. As highly satisfied customers are willing to
a result, if using CRM does not lead to pay premium prices and less price-
added value for customers and com- sensitive. This implies customers tend to
petitive advantage for industries, there is pay for the benefits they receive and be
no result except wasting resources. For tolerant of increases in price, ultimately
detail result, this study shows that increasing the economic performance of
customer support has direct signifficant the firm.
effect on the SMEs performance in Journal by Krishnan (2014),
exporting companies, market support has explained that an essential goal of CRM
positive effect on the performance of technology is to enable salespeople and
SMEs, CRM technology has effect on the marketers to improve client facing
SMEs performance in exporting com- efficiency and effectiveness, which leads
panies. In short, this study shows a to improving performance as evidenced
significant effect of CRM on company in this study. The study shows that by
performance, moreover in financial and pursuing a customer relationship initia-
operational performance. For financial, tion process, along with a relationship
this study shows explicitly the effect of maintenance process it has positive
the CRM variables on the variables that effects on sales performance. The key is
proximate the finances. to have management convince the sales
Based on Gujrati (2016) said that team of the importance that CRM
the implementation of business intelli- technology plays in this course of action
gence in investing in managing relation- resulting in sales performance. Moreover,
ships with customers, in this case CRM CRM technology effectiveness should be
can reduce the cost of marketing, but still viewed as a tool to drive a customer-
maintain good relations with customers, centric culture within the selling firm and
so that the cost incurred can be more it starts with the prospect initiation and is
efficient. Money invested in CRM carried through the relationship main-
implementation will also return and tenance process. CRM strategy is capable
improve ROI. The results also pointed out of capturing/realizing and meeting
that the proper application of CRM can customer needs so it is useful to achieve
significantly affect financial performance. excellence as a pioneer and respond to
According to Santouridis (2015), customers in real-time for new product
CRM has a strong effect on the profi- development or sales increase. Com-
tability of an organization. If imple- panies believe that CRM will directly
mented properly it produces positive impact such performance measures as re-
results n the other side improper mana- venue, client retention, or client
gement of CRM solutions results in acquisition, which are lofty firm goals.

138 Jurnal Ekonomi Bisnis Volume 22 No.2, Agustus 2017

Sales force automation tools, such as The Impact of CRM on Marketing
CRM, have been shown to help sales Performance
professionals improve closing rates and As has been shown in the ex-
generate revenue faster. By taking advan- planation of the CRM effect on finance
tage of CRM capabilities, salespeople can from research Mozaheb (2015), the re-
expand their knowledge, improve their sults of this study also show a significant
targeting skills, enhance their presen- effect of CRM on marketing performance
tation skills and culminate in a more by using customer approach as a proxy.
effective sales process. CRM is the core Customer information gathering steps for
business startegy that integrates internal a sharper and more precise business plan
processes and functions and external also support the results of a significant
networks to create and deliver value to CRM effect on the marketing perfor-
targeted customers and finally, increases mance.
profits. Journal Namjoyan et al (2013), in-
Research Woodcock (2011), iden- dicated that CRM successfuly influences
tified how does social CRM work in the marketing performance significantly. In
real world. CRM can deliver financial CRM implementation, data collecting for
benefits to companies in every sector. customer categorizion is important to
The benefits are centred around ‘ understand sales potentials and maintain
customer’ and are not peripheral but fun- relationship with costumers, moreover
damental to driving business perfor- make them loyal. This model takes into
mance. Financial benefits apply across consideration customer needs data and
the customer lifecycle, in acquisition, wants to provide more desirable services
retention, value development and ma- for customers. Organizations that follow
naging cost to serve. In addition, CRM this model will be able to adjust to the
can deliver insight that will help drive needs and desires of customers in the
real customer centric innovation. The shortest time and also can provide the
knowledge built on customer behavior, best service for them. CRM modeling
attitudes and mood will help drive efforts to help employees understand all
benefits throughout the value chain, customer needs and wants.
impacting on suppliers (for example, CRM practices can be leveraged to
forecasting demand) and intermediaries provide important customer information
(for example, shaping in-store promo- which can used to improve organizational
tions). CRM technology also help sales performance. Since, the traditional way of
reduce sales cycle time and “make them marketing in increasing retention of
more successful in targeting the customer incurred high cost, the best
appropriate prospects and converting practicing of CRM provides firm with a
them into customers”. CRM technology is promising way to attack this critical
designed to support customer relation- problem. periodic measurement of a
ships at customer touch points where the firm’s CRM could help managers track
buyer and sales firms interact. For sales changes over time. In addition to the
organizations that implement CRM tech- implementation of the model in the
nology, potential benefits include monitoring process, all three components
improved efficiency in sales processes; in the CRM model can serve the training
increased productivity in sales, mar- needs by helping human resource mana-
keting, and customer support and the gers to develop appropriate training pro-
ability to record and understand customer grams. It aims to help improve staff
needs. understanding of the activities involved in
implementing CRM, so the top manage-

Alawiyah, Humairoh, The Impact ... 139

ment can decide the best business ment. Business Intelligence can be used
strategy. Not only that, this study also correctly only when applied with care and
found that knowledge management full support from top management. With
influences marketing performance signifi- the help of Business Intelligence, com-
cantly. As conclusion, CRM implemen- panies can identify their most profitable
tation proved affects to marketing customers and fundamental reasons for
performance in significant (Mohamad et customer loyalty, as well as identify
al.: 2014). potential customers in the future if not
Another research done by Mo- larger prospective. The most innovative
hamad et al (2014) stated that in a highly companies today are those who use
competitive era of globalization, organi- business intelligence to gain a sustainable
zations (whether SMEs, corporations, or competitive advantage. In this case,
governments) must find appropriate mea- customer-driven business intellectual is
sures to survive and compete. Therefore, CRM could affect marketing performance
this study examines the implementation significantly.
of good CRM to improve performance, so A result from their study by
as to achieve organizational success. The Mohamad et al (2014) that in a highly
results show that CRM practices proxied competitive era of globalization, organi-
by key customer focus, knowledge mana- zations (whether SMEs, corporations, or
gement, relationship marketing, and governments) must find appropriate mea-
technical CRM resources are significantly sures to survive and compete. Therefore,
affected on organizational performance, this study examines the implementation
on of them is marketing performance. of good CRM to improve performance, so
Shavazi (2013) believed an organi- as to achieve organizational success. The
zation can Develop time of product results show that CRM practices proxied
modification for a customer compared to by key customer focus, knowledge
competition and increase a number of management, relationship marketing, and
newly introduced products compared to technical CRM resources are significantly
the competition. She also expressed CRM affected on organizational performance,
cause increase sales volume of individual on of them is marketing performance.
customers and also sales revenue with The findings of this research
individual customers. Customer satisfac- Shafique et al (2015) are CRM helped
tion and loyalty is as consequences of telecommunication industry to provide a
CRM process too. platform telecommunication organization
Journal Acker (2011), said that in to improve their customer relationship
the mature stage, CRM implementation management capabilities for making a
can helps doing marketing work faster long-term relationship with their
and better marketing decision with customers and make frequent and bundle
specialization in social sales, social sale of their products and services to the
service, or social marketing. It shows a customers. It is satisfying and makes a
significant effect from CRM implemen- customer loyal to them which was take
tation on marketing performance. financial and non-financial benefits to the
Gujrati (2016) told that in the organization. And also to gain com-
current economy condition, the most petitive advantage and high market share
innovative companies are those who use by retention of existing and attracting
Business Intelligence techniques to meet new customers.
the needs and wants of customers, so that The purpose of this research Vah-
they can survive, even compete with dati et al (2014) is to produce some
innovation in this competitive environ- evidence of the association between cus-

140 Jurnal Ekonomi Bisnis Volume 22 No.2, Agustus 2017

tomer relationship marketing strategies Based research on Jain (2016),
and the market and economic perfor- analyzed the impact of online CRM
mance of the firm. Results indicated that practices on company's productivity and
execution of customer support and customer retention. And the result from
marketing support in CRM strategies in this research there is the relationship bet-
banks and financial institutions have ween CRM to productivity and customer
positive and meaning impact on relation- retention. This research tells that CRM as
ship marketing and then leads to increase the practice of analyzing and utilizing
the effect on business performance. marketing databases and leveraging
Based on hypothesis by Kim (2012) communication technologies to determine
indicates that customer relationship corporate practices and methods will
management influences marketing perfor- maximize the lifetime value of each indi-
mance significantly. With CRM impact to vidual customer. Conventional communi-
improve the employees' efforts for cation processes are often time delayed,
attracting reviews their job customers e-CRM allows organizations to always
through increasing knowledge, improving operate in real-time and more than that
reviews their flexibility and speed in interaction with customers are transparent
responding the customers, and paying so that organizations are able to draw
attention to reviews their needs and conclusions on customer behavior and
wants. This means that a company which measure the success of activities.
focuses on the continuous improvement Opara (2016) identified strong posi-
of its employees work environment, tive relationship between customer satis-
technical skills, expertise and behavior faction, market share and profitability.
during customer contacts can excel in the The study opined that management stra-
implementation of its customer acquisi- tegies designed to increase customer
tion and retention strategies. satisfaction are likely to lead to quan-
tifiable returns in the long run. Identified
The Impact of CRM on Operating customer satisfaction was found to be an
Performance antecedent to customer loyalty, retention,
In Mozaheb (2015) research we behavioural intention, market share and
could read a condition that not only profitability; while customers are expec-
financial sectors which is optimum by ted to be more likely to form future
implementing CRM, operating perfor- purchase intention, engage in positive
mance of company also advance after word of mouth advertising.
applied the right system of CRM. It CRM strategy in the banking sector
shows that CRM could affect operating is being employed to help organizations
performance in significant. make use of technology and human re-
The other research about CRM and sources to gain insight into the behaviour
operating performance is done by Acker of a customer and value of those
(2011). They stated that in the begining customers. If it works as planned, the
company does not have to make a com- organisation can: provide better customer
plex and integrate system of CRM, it’s service, make call centers more efficient
still useful as a type of business intelegent and accessible, cross sell products more
only. For a long term investment, until it effectively, help marketing staff close
arrived in the matre stage, an integrate deal faster, simplify marketing and sales
CRM factors could affect operating processes, discover new customers, and
performance significantly. increase customer’s revenues (Onut et al.
2007).

Alawiyah, Humairoh, The Impact ... 141

CONCLUSION AND SUGGESTIONS (2014). CRM has positive and significant
impact on operating performance was
Conclusion confirmed in journal by Acker (2011),
This study aimed to explain the Jain (2016), Mozaheb (2015), Onut
impact of Customer Relationship Mana- (2007) and Opara (2016). In short, from
gement on Company Performance in all the previous journal observed, CRM
three segments. Based on several example impact on marketing performance is the
of researches above, all research using most dominant issue, then followed by
primary data and some of them supported CRM effect on financial performance.
by secondary data. The primary data used
were questionnaires, sometimes sup- Suggestions
ported by observations of environmental For further research, it is desirable
conditions of the organization. CRM to look for more journals about CRM
proxies are quite diverse, includes influences on operating performance. In
customer identification, customer attrac- addition, further research is suggested to
tion, retention. The majority proxy for explain the impact of CRM on all three
financial performance is profitability. For types of performance - financial, mar-
marketing performance, the chosen proxy keting, and operating performance - in
is market share. Operational performance more detail and structured. It is hoped
is proxied by sales volume. In majority, that the development of this research by
Information from research questionnaire the future authors can further explain the
was generally processed by the Likert effect of CRM on performance in various
Scale - 5, analysis using SEM and mul- forms of business - whether service com-
tiple linear regression, and for the used panies, commerce, or manufacture, then
tool is SPSS. empirically explain which ones are a
Implementation of CRM software stronger influenced by CRM. The next
in the industry important to collecting writer is also expected to make more
data and as an analyisis support. How- advanced research which is more specific,
ever, if CRM is not maximized, will only for example explaining the influence of
waste money.CRM management must be CRM on the three performance according
supported by the condition of the organi- to the business sector, for example agri-
zation, starting with changing the organi- culture, mining, finance, consumer goods
zational culture from a transactional view industry, and so on. We hope that this
(focus on products and brands) became journal can stimulate other authors to
focus on the relational view, so the further explore benefits of CRM for the
benefits CRM could impact for long term. companies.
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