The effect of Customer Relationship Management systems on firm performance

- Using a sample of firms that implement CRM systems, we examine a collection of possible benefits for firms that choose to adopt these systems.
- We find evidence of numerous operational benefits these systems provide for firms. Specifically, we find that following CRM system implementation firms show improvements in operational performance, operational efficiency, accounts receivable collectability, and earnings predictability.
- These results are evidenced through increases in sales and operational cash flows, a reduction to the operating margin, a reduction of the allowance for doubtful accounts, more accurate management earnings forecasts, and improvements to other similar performance measures.