An economic analysis of strategic information technology investments
MIS Quarterly - Special issue on the strategic use of information systems
Impact of electronic data interchange technology on JIT shipments
Management Science
Assessing the impact of information technology on labor productivity: a field study
Decision Support Systems - Special issue: economics of information systems
Information technology impact on process output and quality
Management Science - Special issue: Frontier research on information systems and economics
Management Science - Special issue: Frontier research on information systems and economics
Individual Marketing with Imperfect Targetability
Marketing Science
Consumer Addressability and Customized Pricing
Marketing Science
Technological Advances, Transaction Costs, and Consumer Welfare
Marketing Science
An Economic Model of Product Quality and IT Value
Information Systems Research
Journal of Management Information Systems - Special section: Strategic and competitive information systems
Direct and indirect impacts of information technology applications on productivity: a field study
International Journal of Electronic Commerce
Management Information Systems: Managing the Digital Firm (10th Edition)
Management Information Systems: Managing the Digital Firm (10th Edition)
Marketing Models of Service and Relationships
Marketing Science
Customer Metrics and Their Impact on Financial Performance
Marketing Science
Information Systems Research
Optimizing the Marketing Interventions Mix in Intermediate-Term CRM
Marketing Science
Journal of Management Information Systems
Information Technology Investment Strategies Under Declining Technology Cost
Journal of Management Information Systems
Systems Design, Process Performance, and Economic Outcomes in International Banking
Journal of Management Information Systems
Investment in Enterprise Resource Planning: Business Impact and Productivity Measures
Journal of Management Information Systems
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Although companies have spent a great deal of money to adopt CRM (customer relationship management) technologies, many have not seen satisfactory returns on their CRM implementations. We study optimal CRM implementation strategies and the impact of CRM investments on profitability. For our analysis, we classify CRM technologies into two broad categories: targeting-related and support-related technologies. While targeting CRM improves the success rate of distinguishing between nonloyal and loyal customers, support CRM increases the probability of retaining the loyalty of existing customers. We also consider the costs of implementing each CRM type separately as well as both types simultaneously. We show that the optimal CRM implementation strategy depends on the initial mass of loyal customers and diseconomies of scale in simultaneous implementation. We also find that the two types of CRM technologies are substitutive rather than complementary in generating revenue. We discuss why it is difficult to avoid overinvestments in CRM when the nature of the investments is misunderstood. We study the optimal CRM implementation scope and the impact of different types of CRM on customers. We develop a model that not only considers both the revenue and costs sides but is also helpful in determining the deployment of right CRM technology in the right scope.