A performance evaluation model of CRM on non-profit organisations

Abstract

Recently, CRM (Cause-Related Marketing) has gradually been adopted by non-profit organisations. However, for the evaluation of CRM's effect, a non-profit organisation still refers to traditional financial data, which could not understand the influence and effect of CRM on a non-profit organisation completely. This research introduces the concept of the Balanced Scorecard as the framework for the evaluation of CRM, and utilises the Balanced Scorecard's five dimensions in a non-profit organisation to design a questionnaire. The questionnaire is used to collect the performance data of a non-profit organisation after the execution of CRM, and uses Structural Equation Modelling (SEM) to verify the relations and interaction between each performance dimension. The primary purposes of this research are (1) to analyse the influence and effect on a non-profit organisation of its participation of CRM; (2) to design a reliable measurement index to evaluate the effect of CRM; (3) to establish the relationship structure model of the influence factors of the CRM's effect. This research shows that the measurement index developed by this research could measure the fact that the non-profit organisation has effects in five dimensions after the execution of CRM – namely, organisational mission, financial, customer, internal process, learning and growth – and these five dimensions influence each other.

Keywords:

• non-profit organisation
• Cause-Related Marketing (CRM)
• Balanced Scorecard
• Structural Equation Modelling (SEM)