Customer Relationship Management: Proposed Framework from a Government Perspective Times

Ali M. Al-Khouri
2012 Journal of Management and Strategy  
Customer Relationship Management (CRM) has grabbed the attention of both practice and research in the past decade, developing into an area of major significance. The focus of the CRM concept is to build a long-term and value-added relationship for both the organisation and customers. Governments -although considered late followers compared to the private industry -have been showing growing interest in CRM systems recently to help public and government agencies track and manage relationships
more » ... their constituents. In this article, we review existing literature to provide an understanding of the field. We also present a proposed CRM framework based on literature review and practice work. The proposed framework is envisaged to act as a practical management tool that provides a holistic overview of implementation phases, components of each phase, and associated critical success factors. that despite the increasing interest in citizen relationship management in government work, the adoption of CRM systems by government agencies -and particularly by e-government programs -is slow (Pan et al, 2006) . Lack of strategic focus is recognised as one of the prime reasons for CRM failures. We also note that little has been written about how the public sector might use CRM principles to improve service delivery. Considering the strategic context of CRM systems in organisations, this article emphasises the need for a conceptual framework to guide management in the implementation of CRM systems. We present a conceptual CRM framework that is based on findings from existing research and practice fields. The proposed framework is envisaged to further support its practical applications in implementing successful CRM systems. The framework may act as an effective guiding tool to management to provide a holistic overview of implementation phases, components of each phase, and associated critical success factors. This article is structured as follows: First we provide a short review of the literature in section 2, with a focus on defining the CRM concept. We also attempt to provide a summary of the most common critical success factors for CRM implementation as reported in the literature. Then in section 3, we examine a generic CRM framework to underpin its components. In sections 4 and 5, we explore the role of technology in CRM programs, its potential benefits, and identified limitations. In section 6, we explore the role CRM technology as a contemporary communication and service delivery enablers. In section 7, we briefly draw on cloud-based CRM solutions as an alternative implementation approach. In section 8, we review some complexities associated with CRM programs. Then, in section 9, we outline our research and development methodology; we finally present the proposed framework and explain its components in section 10. Reports from Gartner Group and Meta Group had three very striking findings: (1) More than 50% of CRM implementations are viewed as failures by the customer, (2) 55-75% of CRM implementations fail to meet their objectives, and (3) customers usually underestimate the costs of CRM implementations by 40-75% (Coltman, 2006) . A 2009 Forrester Research study found that 47% of CRM implementations fail -many due to a lack of CRM strategy and user adoption (Simon, 2010) . The study elaborated on some of the problems experienced during CRM implementation. The problems most commonly cited by executives are depicted in Figure 3 . Existing research points out a number of success factors that organisations need to keep in mind when aligning their strategy with objectives and managing people performance to ensure execution and results. Tables 1 and 2 provide a
doi:10.5430/jms.v3n4p34 fatcat:dpxk5nlxqrc5dh57t63g3c263u