Developing an Activity-Based Costing Approach to Maximize the Efficiency of Customer Relationship Management Projects
In today\'s competitive environment, profitability analysis is not just about looking at the profit and loss statement. It is more about knowing which of your customers are making you money and which are losing you money. This paper considers how activity-based costing approach may complement a customer relationship management effort. The model presented in this paper combines the principles of activity-based costing with performance measurement. Applying this model helps managers understand the true costs of providing products and services, and the factors that drive these costs, while addressing other concerns such as customer satisfaction. This approach has the potential to integrate all business processes around the requirements of significant profitable customers, a fact that most of the previous researches fail to acknowledge.
Keywords: Activity-Based Costing (ABC), Customer Relationship Management (CRM), Customer Profitability Analysis (CPA), Performance measurement.
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ABOUT THE AUTHORS
Mahmood Shafiee
Dr. Mahmood Shafiee received his MS degree in Industrial Engineering from Sharif University of Technology, Tehran, in 2006 and PhD degree (with a first class Honors) in Industrial Engineering from Iran University of Science and Technology, Tehran, in 2010. He has more than 40 papers published in international journals and conference proceedings. His papers have been appeared in Reliability Engineering and System Safety, IIE Transactions, Journal of Risk and Reliability, Asia-Pacific Journal of Operational Research, International Journal of Advanced Manufacturing Technology, Applied Stochastic Models in Business and Industry, Communications in Statistics-Theory and Methods, International Journal of Quality and Reliability Management, etc.
Golriz Amooee
Golriz Amooee was born in Tehran, Iran in 1987. She received her B.S. degree in Information Technology from Islamic Azad University, Parand Branch, Iran, in 2009 and currently, she is a M.S. student in the Department of Information Technology at University of Qom, Iran. She specializes in the field of Customer Relationship Management (CRM), Information Security Management and ISO 27001.
Yaghoub Farjami
Department of Information Technology, University of Qom, Qom, Iran
Mahmood Shafiee
Dr. Mahmood Shafiee received his MS degree in Industrial Engineering from Sharif University of Technology, Tehran, in 2006 and PhD degree (with a first class Honors) in Industrial Engineering from Iran University of Science and Technology, Tehran, in 2010. He has more than 40 papers published in international journals and conference proceedings. His papers have been appeared in Reliability Engineering and System Safety, IIE Transactions, Journal of Risk and Reliability, Asia-Pacific Journal of Operational Research, International Journal of Advanced Manufacturing Technology, Applied Stochastic Models in Business and Industry, Communications in Statistics-Theory and Methods, International Journal of Quality and Reliability Management, etc.
Golriz Amooee
Golriz Amooee was born in Tehran, Iran in 1987. She received her B.S. degree in Information Technology from Islamic Azad University, Parand Branch, Iran, in 2009 and currently, she is a M.S. student in the Department of Information Technology at University of Qom, Iran. She specializes in the field of Customer Relationship Management (CRM), Information Security Management and ISO 27001.
Yaghoub Farjami
Department of Information Technology, University of Qom, Qom, Iran
