CRM and Business Performance

CRM is a business strategy which aims to create value for both organization and customers through initiating and maintaining customer relationships. As a core strategy, CRM is based on using a marketing information system and the company’s IT infrastructure. CRM technology plays an important role in creating customer knowledge, which is the core of any CRM initiative. The CRM strategy will not yield the expected results without the proper use of information technology in the CRM processes. Organizational CRM readiness is related to the level of available technological resources which may be oriented towards CRM implementation. This paper examines the direct outcomes of the CRM activities, as well the relationship among these outcomes and business performance. We also analyzed the effect of the level of organizational CRM readiness on the degree to which companies implemented CRM activities. We conducted a survey on 50 companies operating in the Armenia, which revealed that CRM implementation generates superior business performance.