Showing papers on "Customer relationship management published in 2002"

Avoid the four perils of CRM.

Abstract: Customer relationship management is one of the hottest management tools today. But more than half of all CRM initiatives fail to produce the anticipated results. Why? And what can companies do to reverse that negative trend? The authors--three senior Bain consultants--have spent the past ten years analyzing customer-loyalty initiatives, both successful and unsuccessful, at more than 200 companies in a wide range of industries. They've found that CRM backfires in part because executives don't understand what they are implementing, let alone how much it will cost or how long it will take. The authors' research unveiled four common pitfalls that managers stumble into when trying to implement CRM. Each pitfall is a consequence of a single flawed assumption--that CRM is software that will automatically manage customer relationships. It isn't. Rather, CRM is the creation of customer strategies and processes to build customer loyalty, which are then supported by the technology. This article looks at best practices in CRM at several companies, including the New York Times Company, Square D, GE Capital, Grand Expeditions, and BMC Software. It provides an intellectual framework for any company that wants to start a CRM program or turn around a failing one.

Customer Relationship Management: Emerging Practice, Process, and Discipline

Abstract: Customer relationship management (CRM) has once again gained prominence amongst academics and practitioners. However, there is a tremendous amount of confusion regarding its domain and meaning. In this paper, the authors explore the conceptual foundations of CRM by examining the literature on relationship marketing and other disciplines that contribute to the knowledge of CRM. A CRM process framework is proposed that builds on other relationship development process models. CRM implementation challenges as well as CRM's potential to become a distinct discipline of marketing are also discussed in this paper.

The Hidden Minefields in the Adoption of Sales Force Automation Technologies

Abstract: Sales force automation technologies are increasingly used to support customer relationship management strategies; however, commentary in the practitioner press suggests high failure rates. The authors use identity theory as a lens to better understand salesperson perceptions associated with technology rejection. They collected survey data from 454 salespeople across two firms that had implemented sales force automation tools. The results indicate that immediately after training, salespeople had positive perceptions of the technology. However, six months after implementation, the technology had been widely rejected, and salesperson absenteeism and voluntary turnover had significantly increased. There were also significant decreases in perceptions of organizational commitment, job satisfaction, person-organization fit, and person-job fit across both firms. Finally, salespeople with stronger professional commitment indicated more negative job-related perceptions as experience with the technology inc...

Implementing successful self-service technologies

Abstract: Executive Summary As companies race to introduce technology that enables customers to get service on their own, managers often find that implementing and managing effective self-service technologies (SSTs) is more difficult than it looks. In this article, we present findings from qualitative interviews and survey research investigating SSTs from the customer's point of view. This research identifies factors that impact customer satisfaction and dissatisfaction with SSTs. It also explores the issue of customer adoption of SSTs and highlights factors that are necessary for a customer to try an SST for the first time. Based on this research and our work with companies, we present important lessons to guide managers in developing successful SSTs.

Customer relationship management: key components for IT success

Abstract: This article is directed towards information technology (IT) and marketing managers considering implementation of a customer relationship management (CRM) solution. The goal of this article is not to provide an all‐inclusive tutorial on CRM, but rather to provide a high level insight of the fundamental principles behind CRM and critical aspects of the IT development process. The article begins with an IT manager’s introduction into the basic CRM business and marketing principles. At the heart of the article is a proposed system development lifecycle that highlights the aspects unique or critical to CRM. Finally, it concludes with some final thoughts for long‐term success. After reading this article, the reader will be mindful of the major issues needed for success and be equipped to discuss primary development matters with vendors, staff and management.

Adopting customer relationship management technology

Abstract: Now customer relationship marketing (CRM) solutions might be the hottest topic in business world CRM impelled the growth of both B2B and B2C markets But the issue is how to apply the cutting‐edge CRM solutions Do people really understand what CRM is and why they should install CRM? The mistaken concept of CRM may have disastrous effects on the company This paper begins with the basic concepts of CRM, elaborates the characteristics, reviews its brief history and addresses the current status of CRM Then it develops the extended concepts of CRM from micro‐ and macro‐ perspectives In the “Implementation and tips” section, it concludes the proper steps to approach CRM and how to bear a right attitude towards CRM solutions Related Government rules are also covered

Implementation Team Responsiveness and User Evaluation of Customer Relationship Management: A Quasi-Experimental Design Study of Social Exchange Theory

Abstract: Customer Relationship Management (CRM) systems require extensive configuration during which users come into extensive contact with the technical implementation team. Previous research examining other Enterprise Resource Planning (ERP) modules has shown that user perception of the responsiveness of such teams, as an indicator of a possible social exchange, is significantly associated with an increased favorable assessment of the new system and ultimately its adoption, the reason being that perceived responsiveness creates a constructive social exchange. However, previous research, using survey data alone, did not examine causation. The objective of this study is to examine, using a quasi-experimental design, whether different degrees of actual responsiveness in different sites during CRM implementation result in significant differences in the users'favorable assessment of the correctness and ultimately their approval of a new CRM. The data support these hypotheses, but show that the downstream effects of actual responsiveness are mediated by perceived responsiveness. Implications concerning the social exchange relationship during CRM adoption are discussed.

Factors for Success in Customer Relationship Management (CRM) Systems

Abstract: The importance of effective customer relationships as a key to customer value and hence shareholder value is widely emphasised. In order to enhance these relationships, the application of IT to marketing through customer relationship management (CRM) software, e-commerce and other initiatives is growing rapidly. This study examines the factors that influence the successful deployment of CRM applications, with particular emphasis on those factors which are distinct from other areas of application. Using the analytic induction method, success factors were derived from five in-depth case studies. Resulting factors underemphasised in previous literature include: the need for project approval procedures which allow for uncertainty; the need to leverage models of best practice; the importance of prototyping new processes, not just IT; and the need to manage for the delivery of the intended benefits, rather than just implementing the original specification.

Customer Relationship Management: In B2C Markets, Often Less is More:

Abstract: Customer Relationship Management (CRM) is premised on the belief that developing a relationship with customers is the best way to gain their loyalty. It is argued that loyal customers are more profitable than non-loyal customers. Recently, academic researchers have questioned some of the key premises that are used to support CRM in general, and relationship marketing and customer loyalty programs in particular. This article critically examines the assumptions that underpin CRM and presents the results of research that is skeptical of its value. CRM should only be adopted after a careful appraisal of its cost-effectiveness.

E‐CRM Web service attributes as determinants of customer satisfaction with retail Web sites

Abstract: Business is moving online, not as a matter of choice, but as a matter of necessity. The use of the Internet as a channel for commerce and information presents an opportunity for business to use the Internet as a tool for customer relationship management (CRM)/(e‐CRM). Despite widespread agreement that CRM/e‐CRM has direct and/or indirect impact on customer satisfaction, sales, profit, and loyalty, the significance of e‐CRM and the various e‐CRM features in influencing customer satisfaction has not been well researched. This study attempted to uncover relationships between e‐CRM and customer satisfaction by determining the presence of e‐CRM features on retail Web sites for which we have customer satisfaction data, and determining if the amount of e‐CRM is related to customer satisfaction or which, if any, of the various features of e‐CRM are related to customer satisfaction. It was found that retailers differ in the presence of the 42 different e‐CRM features; that there is a positive relationship between the amount of e‐CRM on a Web site and customer satisfaction with the Web site; and that not all e‐CRM attributes are equal – some are related to satisfaction and some are not. There was no relationship between the level of e‐CRM on a retail Web site and sales and profit.

Electronic banking in Finland: Consumer beliefs and reactions to a new delivery channel

Abstract: The increasing turbulence in the financial service industry sector since the mid-1990s has created a whole new delivery channel for banking: Internet banking. The purpose of this paper is to describe the current state of Internet banking in Finland and to study consumer perceptions, beliefs and reactions to electronic banking in general and Internet banking in particular. The results of this study indicate that bank managers can, by knowing the basic beliefs consumers hold about Internet banking, create more effective customer communication, improve software and target prospects better concerning Internet banking. There is wide agreement that Internet banking will on the one hand have a great impact on the whole bank market, and on the other hand will be considered the most important retail banking delivery channel in the near future. A total of 3,000 questionnaires was prepared and sent to MeritaNordbanken customers in Finland. Using a mailed questionnaire with a response rate of 38.9 per cent, it was found that 40 per cent of the Finnish consumers who responded to this survey were already using Internet banking services. The results of this study provide interesting additions to knowledge of electronic banking and consumer behaviour.

The Evolution of ERP Systems: A Historical Perspective

Abstract: ERP systems are now ubiquitous in large businesses and the current move by vendors is to repackage them for small to medium enterprises (SMEs). This migration has many consequences that have to be addressed through understanding the history and evolution of ERP systems and their current architectures. The advantages and disadvantages of the ERP systems will impact their penetration in this new market. The market position and general strategy of the major systems providers in preparation for this push are described. The chapter concludes that the growth and success of ERP adoption and development in the new millennium will depend on the legacy ERP system’s capability of extending to Customer Relationship Management (CRM), Supply Chain Management (SCM) and other extended modules, and integration with the Internet-enabled applications.

Customer‐relationship levels – from spurious to true relationships

Abstract: Relationship marketing (RM) has been widely accepted as an important determinant of long‐term business success and is believed to be especially well suited for services because of the personal contact between customers and service providers. Past research has focused mainly on the advantages of RM for companies, while less attention has been paid to relationships from the customer’s point of view. We suggest that relationships may be described as ranging from spurious to true, depending on customer‐perceived relationship benefits, trust and commitment. A qualitative study of customer relationships was conducted in a car dealership, where profitability depends on customer commitment to both after‐sales services and the car brand. Customer relationships were found to be more spurious than true. The study revealed that behavioural commitment to after‐sales services was high, but that affective commitment was low to moderate. Customers were satisfied but did not perceive the services to be superior to the competitors’ service offerings. They trusted authorised repair in general and did not feel that after‐sales service would have more than a minor influence on their future car purchases.

An eBusiness Model Ontology for Modeling eBusiness

Abstract: After explaining why business executives and academics should consider thinking about a rigorous approach to e-business models, we introduce a new e-Business Model Ontology. Using the concept of business models can help companies understand, communicate and share, change, measure, simulate and learn more about the different aspects of e-business in their firm. The generic e-Business Model Ontology (a rigorous definition of the e-business issues and their interdependencies in a company’s business model), which we outline in this paper is the foundation for the development of various useful tools for e-business management and IS Requirements Engineering. The e-Business Model Ontology is based on an extensive literature review and describes the logic of a “business system” for creating value in the Internet era. It is composed of four main pillars, which are product innovation, infrastructure management, customer relationship and financials. These elements are then further decomposed. Alexander Osterwalder, Yves Pigneur

Multichannel customer management: The benefits and challenges

Abstract: This paper defines multichannel customer management and investigates the opportunities and problems created by multichannel customer management. It explains why multichannel customer management has become an issue for serious discussion. Its aim is to help companies determine their strategies and tactics in this area. It does not provide a complete recipe for multichannel management, but rather explores the main decisions companies need to take as they add customer management channels. It identifies the importance of understanding customer needs and defining the experience customes wants from each channel and overall. It probes issues related to technology, organisation, measurement and economics. A checklist of questions to help companies examining this area is provided at the end of the paper.

Customer Relationship Management: Getting It Right!

Abstract: Build a winning CRM program-one step at a timeThis book presents a complete, step-by-step blueprint for designing, implementing, and managing a successful CRM program The former Director of HP's enterprise-wide CRM initiative shows how to identify the elements of CRM most crucial to your organization, then implement infrastructure to deliver on your key priorities, whatever they are Through real-world case studies drawing on her extensive experience as a CRM leader and consultant, Judith W Kincaid addresses both the managerial and technical challenges of CRM Kincaid's authoritative process examples and detailed templates make it easier to get started-and get results Developing realistic strategic plans and roadmaps customized to your organization Getting started fast, and iterating small steps to powerful success Addressing all customer touchpoints: Web, e-mail, call centers, direct mail, sales contacts, tech support, and more Establishing realistic expectations and metrics Translating your CRM objectives into essential organizational changes Designing integrated customer databases and infrastructure Understanding the crucial interactions between the technical and management aspects of CRM

E‐services and their role in B2C e‐commerce

Abstract: E‐services are important in B2C e‐commerce for managing customer relations and enhancing sales. In the electronic world the customer and the merchant do not meet face‐to‐face, and the clients are more discerning with increased options and solutions available to them online. With the click of a mouse a customer can find another provider. As customers embrace e‐commerce their expectations about service, support, and how they make purchases are changing. Services to customers offered electronically to enhance their online shopping experience include search support, e‐response to customer queries, orders and transactions, e‐payment, e‐transaction record management, e‐assurance and trust, e‐help and other online support in the B2C e‐space. This paper discusses the role of e‐services in B2C e‐commerce and how they can be applied to enhance the online customer shopping experience. Findings of two research projects that shed some light on both business and customer perspectives of the role of e‐services in the B2...

Customer relationship management: A capabilities portfolio perspective

Abstract: Research evidence shows that companies fail to make their customer relationship management (CRM) efforts pay off. This is probably due to the acknowledged lack of guidelines assisting firms to identify and develop capabilities enabling the successful implementation of their CRM system. In this paper, this deficiency is addressed by proposing a list of critical CRM capabilities and articulating tasks for their development within the organisation. The point of departure is a holistic CRM definition, which is grounded on market-orientation, information technology (IT) and integration. Alongside research evidence, it is used as a basis for the development of an overall conceptual framework for CRM capabilities. The framework is analysed and discussed, and practical implications are offered for the firm.

Methods of Investigating Critical Incidents A Comparative Review

Abstract: The methods used for analyzing customer relationships have traditionally focused exclusively on service encounters. Recently, researchers have presented these service encounters as a flow or process, although without taking time into account. Both of these perspectives on customer relationships have provided the means for developing a process-based method that does take time into account. This makes it possible to analyze and describe a customer relationship in which effects and consequences can be represented and the influenced and influencing factors prioritized. Given that the domain for analyzing the customer relationship is a switch from one service provider to another, the consequence is clear. The switch is identical to the consequence. The consequence, again, defines the criticality. Criticality and context are key concepts in the search for a deeper understanding of customer relationships, and efforts are made to include them in the development of the methods put forward in this article.

Customer service quality and financial performance among Australian retail financial institutions

Abstract: This paper seeks to explore empirically the relationship between customer service quality and financial performance among a representative cross-section of Australian banks and credit unions by correlating customer service quality scores from a sample of retail customers with financial performance measures over a five-year period.Results show that all financial performance measures (interest margin, expense/income, return on assets and capital adequacy) are positively correlated with customer service quality scores. They also show that the credit unions strongly out-perform the banks in customer service quality and also for some measures of financial performance (interest margin and return on assets). The positive link between financial performance and customer service is thus supported in this study. Implications for the three groups of institutions are also discussed.

The true lift model: a novel data mining approach to response modeling in database marketing

Abstract: In database marketing, data mining has been used extensively to find the optimal customer targets so as to maximize return on investment. In particular, using marketing campaign data, models are typically developed to identify characteristics of customers who are most likely to respond. While these models are helpful in identifying the likely responders, they may be targeting customers who have decided to take the desirable action or not regardless of whether they receive the campaign contact (e.g. mail, call). Based on many years of business experience, we identify the appropriate business objective and its associated mathematical objective function. We point out that the current approach is not directly designed to solve the appropriate business objective. We then propose a new methodology to identify the customers whose decisions will be positively influenced by campaigns. The proposed methodology is easy to implement and can be used in conjunction with most commonly used supervised learning algorithms. An example using simulated data is used to illustrate the proposed methodology. This paper may provide the database marketing industry with a simple but significant methodological improvement and open a new area for further research and development.

Innovation, Networking and Proximity: Lessons from Small High Technology Firms in the UK

Abstract: The article explores how the innovative performance of small high-tech firms relates to their external networking activities, and whether geographical proximity in their network relations matters. Data from a small sample of electronics firms and software developers in South East England are used to construct indicators of innovativeness, which are correlated with variables capturing intensity of external interactions and proximity benefits. The regional science base is found to have played a key role in nurturing new high-tech ventures, but science parks had not contributed to this. Interaction with parties with complementary capabilities such as suppliers and service providers is also associated with high innovative performance. However, the findings do not support the current policy fashion of encouraging regional networks revolving around firms in similar business activities and close customer relations.

Demand aggregation system

Abstract: The demand aggregation system includes buyer sponsored DealRooms, seller sponsored DealRooms, and multiple buyer and multiple seller sponsored DealRooms. Moreover, the demand aggregation system includes a customer relations management (CRM) package. In the CRM package, information on buyer and prospective buyers are loaded into a database that can include information such as: individual name; company name and address; email address; phone number; cell number; products purchased; volumes; time of purchase. Further the CRM package can be integrated with the demand aggregation system as well as a customer resource planning system (e.g., MRP, ERP).

The state of electronic customer relationship management in retailing

Abstract: This paper analyzes the availability of electronic customer relationship management (E‐CRM) features on retail Web sites and their relationship to consumer satisfaction and site traffic. The top 100 specialty store, standard retail store, and Internet retailer Web sites were analyzed for the presence of 41 E‐CRM features. The availability of these features was then assessed for their relationship with consumer traffic to the site and customer satisfaction with the site. Internet retailers were significantly more likely to have E‐CRM attributes on their site. However only the chat feature, spare parts availability, gift certificate purchase, mailing address, search engine, links, and a company profile were associated with customer satisfaction. No E‐CRM feature was associated with customer traffic to a site. Standard retailers appear to be behind in implementing E‐CRM features in current operations. It is not clear that retailers understand what aspects of E‐CRM will be important in customer satisfaction.

All That Glitters is Not Gold: Digging Beneath the Surface of Data Mining

Abstract: This article develops a more compre- hensive understanding of data mining by examining the application of this technology in the marketplace. In addition to exploring the technological issues that arise from the use of these applications, we address some of the social concerns that are too often ignored. As more firms shift more of their business activi- ties to the Web, increasingly more information about consumers and potential customers is being captured in Web server logs. Sophisticated analytic and data mining software tools enable firms to use the data contained in these logs to develop and implement a complex relationship management strategy. Although this new trend in marketing strategy is based on the old idea of relating to customers as individuals, customer relationship management actually rests on segmenting consumers into groups based on profiles developed through a firm's data mining activities. Individuals whose profiles suggest that they are likely to provide a high lifetime value to the firm are served content that will vary from that which is served to consumers with less attractive profiles. Social costs may be imposed on society when objectively rational business decisions involving data mining and consumer profiles are made. The ensuing discussion examines the ways in which data mining and the use of consumer profiles may exclude classes of consumers from full participation in the market- place, and may limit their access to information essen- tial to their full participation as citizens in the public sphere. We suggest more ethically sensitive alterna- tives to the unfettered use of data mining.