Date of Conferral

2015

Degree

Doctor of Business Administration (D.B.A.)

School

Business Administration

Advisor

Ronald McFarland

Abstract

Given that analysts expect companies to invest $22 billion in Customer Relationship Management (CRM) systems by 2017, it is critical that leaders understand the impact of CRM on their bottom line. The purpose of this correlational study was to investigate potential relationships between the independent variables of customer satisfaction and CRM utilization on the dependent variable of business revenue. The service-profit chain formed the theoretical framework for this study. The study population included 203 service branches for an industrial equipment manufacturer in North America. The service director for the subject organization provided the data for the study via data extracts from the company's corporate database. Some branches were eliminated, leaving a total sample size of 178. The results of a multiple linear regression analysis showed that the proposed model could significantly predict branch revenue F (2,175) = 37.321, p < .001, R2 = .298. Both CRM use and customer satisfaction were statistically significant, with CRM use (beta = .488, p < .001) showing a higher contribution than customer satisfaction (beta = -.152, p = .021). This study provides evidence to business executives that CRM use has a strong positive influence on revenue. Additionally, this study supports the findings of other studies that show a point of diminishing returns in improved customer satisfaction. This study contributes to positive social change by allowing firms to make better decisions with their investment dollars and by increasing CRM utilization through cause-related marketing.

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