Addressing the drivers of customer. relationship management systems. An insight on the effect of new media in the German service sector

Abstract

New media - i.e. web based strategies and tools - have become indispensable to customer relationship management (CRM). This study provides a comprehensive empirical analysis of German service-sector SMEs’ experience with new media in CRM, which is based on interviews and a statistical survey among 101 companies. The analysis reveals perceived opportunities, risks and success factors and evaluates to what extent the use of and insights into new media have an effect on SMEs’ CRM success. Findings reveal that SMEs successfully rely on a strategic mix of new media and personalized and individualized CRM. SMEs that have realized the opportunities and success factors of new media in CRM understand how to optimize the economic outcome of these strategies but frequently ignore their utility from their clients’ perspective.