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The Research of SA Company for the Effect of CRM Technology Usage on Sales Performance

Author: MeiZuo
Tutor: LiHaiGang
School: Shanghai Jiaotong University
Course: Business Administration
Keywords: CRM TAM TTF Sales Performance Pharmaceutical Industry
CLC: F274
Type: Master's thesis
Year: 2009
Downloads: 45
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Abstract


Customer Relationship Management (CRM) system as an important resource for the competitiveness of enterprises has brought the increasing concerns, but numerous practices have proved the growth of the organization performance may not be sustainable after the complex information system is introduced in. Whether the "Happiness curve" can be finally realized is heavily relies on the degree of integration as well as the synergy between the business and information system.Under the increasingly competitive and fiercer market environment, pharmaceutical companies already have a clear and common understanding of the importance of customer resources and how to systematically and effectively manage it, as the consequence, the hefty sums of money has been dumped on the investment of CRM solutions, nevertheless the effect is not as anticipated. Exploring the reason, it is not difficult to find there still has several problems existing in the system usage. In pharmaceutical industry, CRM is the core information system utilized by medical representative, and each medical representative’s sales performance has tremendous implication to the overall performance of the enterprise. Hence, how to guide medical representatives to form the optimum and scientific behavior of the system usage, adequately materialize the effectiveness of CRM solutions and maximize the medical representative’s productivity naturally becomes to the focus of attentions. Many researches have addressed this topic and several models have been proposed and refined in the past years, however there is lack of literature and comprehensive empirical researches which covers the correlation between the technology usage and sales performance.Under this background, this research attempts to explore and analyze the correlation between the CRM usage and the performance of the medical representative, so as to provide an indirect approach to measure the return on investment and business value of CRM system. The structure of this article is as follows: First of all, given the background of this research, described the current status and issues of CRM application in worldwide as well in pharmaceutical industry; followed by the introduction of the basic theories for this article - Technology Adopt Model (TAM) and Task-Technology Fit theory (TTF); then uses it as the foundation to build assumption models between CRM usage and sales performance for SA Co, ltd; finally verify each individual models and get some meaningful finding and conclusions.This research collected 187 samples from SA Asia Pacific for their CRM usage records and corresponding sales performance (measured as sales percent to quota) in 6 months as well as the relevant personal information such as length of service, related work experience and so on, afterwards built up the econometric model, and then conducted calculation and analysis. The contribution is the result of this research observed and proved the curvilinear relationship between a salesperson’s prime task performance and their usage of the“enabling”CRM technology. Initially, the CRM technology is enabling on sales performance, but diminishing return sets in, and beyond a point, overuse resulted in a disabling effect on sales performance. This finding offers a valuable insight to practitioners and provides a strategic direction—achieving and maintaining a particular level of technology usage to optimize prime task performance.To sum up, this research discovered and clarified the correlation between the CRM technology usage and sales performance, which could help SA Co. Ltd to optimize its training and management scheme as well as develop the effective and pertinence incentive policies; offers the guideline for the investment on future system upgrade and enhancement. The whole research ideas, analytic process and tactic options also gives an instructive referential to other pharmaceutical companies.

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CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise Marketing Management
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