Application and Model of CRM Strategy Map: an Empirical Study in China

Customer relationship management (CRM) is a business strategy, which aims at acquiring new customers and retaining current customers to gain competitive advantages. But in China, many CRM projects failed because that enterprise didn't translate the CRM strategy explicitly, align the technology and competence investment with CRM strategy and execute it effectively. Our research aims at to establish the CRM strategy map explicitly based on the principle of balanced scorecard (BSC), which is a performance evaluation tool at beginning and then transforms to a strategy execution system. The CRM strategy map involves four perspectives: relationship value, customer value, customer interactive and customer knowledge. We illustrate the model through the case study of executing CRM Strategy in Xuzhou Construction Machinery Group Co., Ltd, the largest manufacturing industry in China, to testify its feasibility and validity.