Evaluating the effects of Customer Relationship Management using modelling and simulation techniques

By adopting a process view of CRM, the research presented in this paper uses the ´witness´ modelling and simulation software to demonstrate a novel method for measuring CRM. The process chosen was the customer order process of a case study organisation considering various options for CRM development. The process commenced from the processing of a new order and ended at the shipment of goods to the customer. The implications of the findings are that organisations can clearly determine the potential efficiencies of activities and players in the CRM process. Consequently, direct attribution to costs can be made through more conventional indices such as ROI and employee resource analysis. In conclusion, the research has demonstrated the novel applicability of simulation to the measurement of process CRM effectiveness and provides valuable new insight into the development of the concept and practice of customer relationship management