Introduction ■
BackgroundAs the economic environment has become more competitive, businesses have increasingly sought to explore alternative ways to create value and overcome industry uncertainty. Faced with declining profit margins, a substantial number of firms have refocused their energy on customer retention. Seen as the concretization of relationships with customers (Pan & Lee, 2003), customer relationship management (CRM) projects seek to deliver project functionalities that enhance long-term customer retention (Beldi, Cheffi, & Dey, 2010; Blattberg & Deighton, 1996). The focus of CRM on customer retention should not come as a surprise when one notes that scholarship within relationship marketing (Bennett, 1996) has established that (1) longterm customer retention is closely related to company profit margins and (2) the cost of maintaining an existing customer is lower than the cost associated with attempts to gain new customers (Heskett, Sasser, & Schlesinger, 1997). In principle, CRM involves, according to Levine (2000, p. 34), "the utilisation of customer related information or knowledge to deliver relevant products or service to customer." CRM is mostly used in marketing (Nguyen, 2007, p. 107; Rigby & Ledingham, 2004), sales (Buttle, 2009, p. 374), and customer service departments (Chalmeta, 2006; Colgate & Danaher, 2000), for functionalities such as customization, cost savings, and service improvement initiatives, and is also used for new product identification and customer rationalization (Wu & Tsai, 2007). Perhaps not surprisingly, Winer (2001) describes CRM as the new marketing "mantra."The aim of this research is to identify critical risk factors affecting the successful implementation of CRM projects. The research focuses on the CRM market in Korea.
Literature Review
Customer Relationship ManagementThe objective of customer relationship management is to integrate all customer-related activities (Winer, 2001; Yu, 2001) and, in order to store and deal with all information and data, enough data storage is needed (Nguyen, 2007; Reinartz, Krafft, & Hoyer, 2004). During the processing of CRM, data mining obtains a pattern of customers or finds undiscovered useful knowledge from collected data. In other words, in order to distinguish preferred or priority customers within their client database, data mining is used. Ultimately, CRM is seen as one of the most effective means of guaranteeing