A MODEL FOR EVALUATING THE EFFECTIVENESS OF CRM USING THE BALANCED SCORECARD JonghyeokKim Euiho Suh Hyunseok Hwang f ABSTRACT Customer relationship management (CRM) has become one of the leading business strategies in the new millennium. CRM is a broad term for managing business interactions with customers. The effectiveness of CRM can be measured as a satisfaction level achieved by CRM activities. Although CRM has emerged as a major business strategy for e-commerce, little research has been conducted in evaluating the effectiveness of CRM. Because it is difficult to demonstrate tangible returns on the resources expanded to plan, develop, implement, and operate CRM, the aim of our research is to measure the intangible attributes of these benefits, such as value enhancement, effectiveness, innovation, and service improvement. In this paper, we propose a customer-oriented © 2003 Wiley Periodicals, Inc. and Direct Marketing Educational Foundation, Inc. f JOURNAL OF INTERACTIVE MARKETING VOLUME 17 / NUMBER 2 / SPRING 2003 Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/dir.10051 5 JONGHYEOK KIM is at the Research Center of Korea Telecommunication. EUIHO SUH AND HYUNSEOK HWANG are in the Department of Industrial Engineering at Pohang University of Science and Technology. The authors would like to thank the Ministry of Education of Korea for its financial support toward the Electrical and Computer Engineering Division at Pohang University of Science and Technology through its BK21 program.