DECISION ANALYSIS FOR SELECTING PAYMENT GATEWAY AND CRM SYSTEM FOR SMALL AND MEDIUM-SIZED ENTERPRISES

Abstract

The selection of customer relationship management (CRM) systems and payment gateways has been recognized to significantly impact the financial and operational performance of small and medium-sized enterprises (SMEs). This study develops a decision analysis for technology selection for SMEs, focusing on payment gateways and CRM systems. A single-attribute utility function for payment gateway selection evaluates 12 alternatives based on cost-saving, considering transaction fees, fixed costs, and monthly expenses. A multiattribute utility function assesses 9 CRM systems using both cost savings and lead conversion rates. The best alternatives for both payment and CRM are recommended for the decision maker considering his preferences, risk attitude and company size. For business owners, this research offers a novel application of MAU theory for decision analysis, which can be adapted with data from their businesses. Scalability of the model also allows further extension with additional attributes and/or alternatives.