In order to fully evaluate the impact of CRM systems it is necessary to undertake, where possible, a quantitative assessment and to assign calculable values. Through measuring the positive impact on the business it will be possible to determine:

• whether the CRM implementation has been effective,

• what still needs to be improved,

• the savings that have been made as a result of implementation,

• the enhancements in work practices that have ensued, and

• the costs of implementation of the systems etc.

Because CRM is so broadly interconnected across organisations CRM performance measurement tend to be complex in nature. Vince Kellen (2002), president of consultancy CRM Strategy and Vice President, Information Services, DePaul University, lists a number of approaches that are taken, these include:

Hard ROI approach
Measures focus upon cost savings, productivity improvements, or proven revenue generation opportunities.

Intangible benefits/assets
Measures focus upon brand equity or knowledge capital correlate to future company performance.

Competitive assessments
Measures focus upon how competitors are interacting with customers and drive improvement decisions to meet or exceed a competitor's capabilities.

Value-driven
Measures focus upon economic value delivered to, and/or derived from, a customer. (This measure requires a model to be provided of the associated customer value exchange.)

The performance of CRM systems can be measured using similar methods to those used in other knowledge management and customer success related systems. Some ideas to bear in mind when designing a measurement framework for CRM systems include:

• Customer perceptions through customer survey or focus groups

• Appropriate communications

• Customer profile accuracy

• Timely product promotions

• Overall satisfaction

• Brand awareness

• Brand performance measures

• Customer asset management

• Customer behaviour

• Marketing performance

• Sales force performance

• Service centre performance

• Field service performance

• Supply chain and logistic performance

• Web site performance

• Revenue increase

• Retention increase

• Repeat purchases

• Cost savings

• Sales (especially key customers), margins, cycle

• Marketing opportunities

• Data accuracy

• ROI actual against projected

• Usability - user survey

• Down-time

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