Examining CRM and ECRM Adoption by Greek Firms

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Table of Contents

Information About the Author and Journal
Research Questions and Objectives
Methodology and Data Collection Instruments
Results of the Study
Recommendations and Future Recommended Studies
My Views and Opinions on Research
Conclusion
Reference

Information About the Author and Journal

The article titled “Examining CRM and ECRM Adoption by Greek Firms” was written by Irene Samanta, Graduate Technological Education Institute of Piraeus, Greece, and published in the Journal of Marketing and Operations Management Research in 2012. It was later republished in the International Journal of Systems Engineering in 2019.

Research Questions and Objectives

The article seeks to answer the following research questions (Samanta, 2012):

How do CRM strategy and information technology affect B2B relationships?
What is the impact of the firm’s size on its technology adoption?

The objective of this research is to effectively approach the topic of CRM applications in Greek companies that utilize it at the consumer product level. This objective is important due to the fact that CRM technologies have become the standard of operations in the global market (Samanta, 2012). As such, the rates of their adoption, their availability, success, and effects on B2-B relationships require an analysis with respect to the companies’ capabilities, sizes, market segment, and geographical positioning.

Methodology and Data Collection Instruments

The methodology of data collection and analysis is as follows (Samanta, 2012): The participants in the study were recruited from Greek firms that dealt in the consumer products sector that have either applied CRM technology or had RM practices without utilizing specialized software (Samanta, 2012). All participants had a degree of knowledge about CRM technology and showed interest in participation. The candidates were chosen from a list of companies as presented by the databases of the Greek Union of Consumer Products Industries as well as those of Statbank, which accumulates about 85% of the companies in Greece (Samanta, 2012). The researchers utilized snowball sampling methods in order to find companies relevant to the search. The response rate was 19.8%, with 73 participants out of 370 firms that were considered for research (Samanta, 2012).

The selection of the companies included small-sized firms (10-49 personnel) as well as small-medium (between 50 to 249 personnel) (Samanta, 2012). Very small companies (under ten personnel) were excluded from research because of relatively low awareness of CRM technologies or relationship marketing in general (Samanta, 2012). The preferred data collection instrument was the questionnaire. It was sent to participants via e-mail after the initial contacts were filled out and the interest in the research was fully presented (Samanta, 2012). The primary respondents were either general managers, management assistants, or related contact persons in the Marketing and Sales departments.

Results of the Study

The study found that the main advantages as recognized by Greek small and small-medium firms are data collection, customer contacting, and customer filing. These parameters had an average score of 4.97-5.83 on an 8-bit scale, where 4 is the average result (Samanta, 2012). The least important aspects of CRM included the automation of sales force tools and customer service, ranging between 4.17 and 4.56 (Samanta, 2012). The questionnaire also showed that the majority of the systems implemented by companies are customer-oriented rather than company-oriented (5.17 score) (Samanta, 2012). The major improvements offered by the systems to companies included increases in sales volumes, market share, customer retention, and communications.

The areas less affected were customer trends, pricing policies, and product quality improvements (Samanta, 2012). In terms of system applications, CRM software is considered to be applied in nearly 100% of all sales departments and about half (50%) of marketing and customer service departments (Samanta, 2012). Finally, the implementation of CRM automation software is found in all companies and is largely implemented to engage new customers. However, in that regard, the software does not seem to bring many results. Samanta (2012) notes that the only positive correlations between company performance and the use of CRM software support involve the maintenance of customer communication channels and the reduction of sales-related expenses.

Recommendations and Future Recommended Studies

The article does not provide any recommendations on what must be done, given its purpose to be a descriptive study. The article does not provide any recommendations for future studies either. The latter is strange, considering that the article provides a snapshot in time and that the situation might change in the future with the development of CRM and increased familiarity of small and medium-sized businesses with the practice.

My Views and Opinions on Research

The research had a solid methodology of quantitative data through questionnaires. The representation of companies was relatively solid as well, with just under a hundred participants overall. The findings were rather strange, however, as I expected CRM to be more effective in increasing customer retention, improving the overall company standing and market share, as well as relating better to how the interaction between customers and the company goes. Instead, the only things CRM in Greek companies seemed to be useful for were collecting information on customers, improving sales, and advertising products to new customers. Retention rates and other relationship-building categories were notoriously low. The reasons for that were not examined in the scope of this study.

I can speculate that one of the major determinants was not the failure of CRM systems themselves or the people using them but rather an overabundance of companies vying to form relationships, resulting in customer fatigue. At the same time, the idea of CRM systems being used inefficiently or not providing enough tools to competently engage existing customers should not be discarded. Examining these hypotheses can be an objective for a different study. The article did not provide any suggestions or avenues for future research, which is a significant weakness of the article. Additionally, the paper does not seem to be proofread, as there are errors that attract the eye. I think that may be explained by the fact that the researcher does not speak or write in English as her first language, but such things should have been caught during the peer-review process.

Conclusion

The reviewed article examined the use of CRM in small and medium-sized Greek companies in the customer products sector. After analyzing the situation in 73 small and medium-sized businesses, the article provided the main directions in which companies utilize CRM. The primary useful functions of the software, as seen by managers, are in collecting data on customers, increasing sales, and automatizing the interactions between the company and new customers. The systems prove to be less efficient in maintaining the existing customer base or improving the company’s overall marketing positioning. The article is descriptive in nature and does not provide meaningful recommendations or avenues for further studies. Nevertheless, it provides valuable insights by being a snapshot of tendencies at a point in time in the scope of one specific country (Greece). Similar studies can be made to provide more accurate data within a specific timeframe. At the same time, discovering the reasons behind the particular results could be a potential avenue for different research.

Reference

Samanta, I. (2012). Examining CRM and ECRM adoption by Greek firms. Journal of Marketing and Operations Management Research, 2(4), 175-191.

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