The Impact of E-CRM on Organisational and Individual Behavior: The Effect of the Remuneration and Reward System

This article examines how electronic customer relationship management (e-CRM) has affected both organizational and individual behavior in a leading Canadian bank. The innovative and customer-driven culture of this bank pushed it toward early adoption of e-CRM technology. The findings emphasize the role played by many strategic and organizational dimensions in the success of e-CRM implementation. In fact, to make e-CRM efforts pay off, new business processes are required to achieve more effective and closer interactions with customers. The shift toward customer orientation needs to be supported by a shift in organizational objectives and processes. The results indicate that employees’ individual behavior successfully changed from a transactional to a relational perspective and that training and coaching ensured a successful integration of e-CRM technology. Nevertheless, the employee reward and evaluation system, which should have been changed to leverage CRM impact, has surprisingly been forgotten. This deficiency is addressed by proposing a new framework for enhancing e-CRM effectiveness.