Why do Customer Relationship Management Applications Affect Customer Satisfaction?

SUNIL MITHAS Robert H. Smith School of Business MAYURAM S. KRISHNAN Stephen M. Ross School of Business at University of Michigan CLAES FORNELL Stephen M. Ross School of Business at University of Michigan

Abstract:

This research evaluates the effect of customer relationship management (CRM) on customer knowledge and customer satisfaction. An analysis of archival data for a cross-section of U.S. firms shows that the use of CRM applications is positively associated with improved customer knowledge and improved customer satisfaction. This article also shows that gains in customer knowledge are enhanced when firms share their customer-related information with their supply chain partners.

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