Do CRM Systems Cause One-to-One Marketing Effectiveness?

Statistical Science, Vol. 21, No. 2, pp. 223-233, 2006

Posted: 15 Feb 2010

See all articles by Daniel Almirall

Daniel Almirall

Duke University - Medical Center

Mayuram S. Krishnan

University of Michigan, Stephen M. Ross School of Business

Sunil Mithas

University of South Florida

Date Written: 2006

Abstract

This article provides an assessment of the causal effect of customer relationship management (CRM) applications on one-to-one marketing effectiveness. We use a potential outcomes based propensity score approach to assess this causal effect. We find that firms using CRM systems have greater levels of one-to-one marketing effectiveness. We discuss the strengths and challenges of using the propensity score approach to design and execute CRM related observational studies. We also discuss the applicability of the framework in this paper to study typical causal questions in business and electronic commerce research at the firm, individual and economy levels, and to clarify the assumptions that researchers must make to infer causality from observational data.

Keywords: Causal Analysis, Potential Outcomes, Propensity Score, Matching Estimator, Customer Relationship Management Systems, Electronic Commerce

Suggested Citation

Almirall, Daniel and Krishnan, Mayuram S. and Mithas, Sunil, Do CRM Systems Cause One-to-One Marketing Effectiveness? (2006). Statistical Science, Vol. 21, No. 2, pp. 223-233, 2006, Available at SSRN: https://ssrn.com/abstract=1552848

Daniel Almirall

Duke University - Medical Center ( email )

100 Fuqua Drive
Durham, NC 27715
United States

Mayuram S. Krishnan

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States
734-763-6749 (Phone)

Sunil Mithas (Contact Author)

University of South Florida ( email )

Tampa, FL 33620
United States

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