The effect of CRM process on organizational performance: The mediating role of customer equity driver

This article addresses how an organization's customer relationship management (CRM) process affects customer equity drivers and, in turn, organizational performance. By raising a three-staged model including the CRM processes, customer equity drivers, and organizational performance, the authors assert that the customer equity drivers mediate between the CRM processes and organizational performance. The empirical analysis is based on a composite survey structure that gathers data from different types of informants according to the variables. Findings indicate that the expansion process has positive relationship with all the customer equity drivers. However, the acquisition process significantly influences both perceived value equity and brand equity, and the retention process significantly influences relationship equity only. In addition, the study shows that all the customer equity drivers influence the organizational performance given the existing customers. The relationship equity among the customer equity drivers has the strongest effect on the performance.