Showing papers on "Customer relationship management published in 2003"
Book•
16 Dec 2003
TL;DR: In this paper, the authors present a strategy map for aligning intangible assets to enterprise strategy and planning the campaign, which is based on the Strategy Map to Strategy Map (SMSM) framework.
Abstract: 1 Introduction 2 Strategy Maps 3 Operations Management Processes 4 Customer Management 5 Innovation Processes 6 Managing Regulatory and Societal Processes 7 Aligning Intangible Assets to Enterprise Strategy 8 Human Capital Readiness 9 Information Capital Readiness 10 Organization Capital 11 Customizing Your Strategy Map to Your Strategy 12 Planning the Campaign
2,212 citations
TL;DR: Managing a successful CRM implementation requires an integrated and balanced approach to technology, process, and people.
Abstract: Customer relationship management (CRM) is a combination of people, processes and technology that seeks to understand a company's customers. It is an integrated approach to managing relationships by focusing on customer retention and relationship development. CRM has evolved from advances in information technology and organizational changes in customer‐centric processes. Companies that successfully implement CRM will reap the rewards in customer loyalty and long run profitability. However, successful implementation is elusive to many companies, mostly because they do not understand that CRM requires company‐wide, cross‐functional, customer‐focused business process re‐engineering. Although a large portion of CRM is technology, viewing CRM as a technology‐only solution is likely to fail. Managing a successful CRM implementation requires an integrated and balanced approach to technology, process, and people.
1,246 citations
TL;DR: In this article, the authors developed a framework that incorporates projected profitability of customers in the computation of lifetime duration and identified factors under a manager's control that explain the variation in the profitable lifetime duration.
Abstract: The authors develop a framework that incorporates projected profitability of customers in the computation of lifetime duration. Furthermore, the authors identify factors under a manager’s control that explain the variation in the profitable lifetime duration. They also compare other frameworks with the traditional methods such as the recency, frequency, and monetary value framework and past customer value and illustrate the superiority of the proposed framework. Finally, the authors develop several key implications that can be of value to decision makers in managing customer relationships.
1,161 citations
TL;DR: This paper uses the economic concept of complementarity in organizational design, along with prior findings from studies of client-vendor relationships, to explain the IT vendors' value proposition and explains how vendors can offer benefits that cannot be readily replicated internally by client firms.
Abstract: To date, most research on information technology (IT) outsourcing concludes that firms decide to outsource IT services because they believe that outside vendors possess production cost advantages. Yet it is not clear whether vendors can provide production cost advantages, particularly to large firms who may be able to replicate vendors' production cost advantages in-house. Mixed outsourcing success in the past decade calls for a closer examination of the IT outsourcing vendor's value proposition. While the client's sourcing decisions and the client-vendor relationship have been examined in IT outsourcing literature, the vendor's perspective has hardly been explored. In this paper, we conduct a close examination of vendor strategy and practices in one long-term successful applications management outsourcing engagement. Our analysis indicates that the vendor's efficiency was based on the economic benefits derived from the ability to develop a complementary set of core competencies. This ability, in turn, was based on the centralization of decision rights from a variety and multitude of IT projects controlled by the vendor. The vendor was enticed to share the value with the client through formal and informal relationship management structures. We use the economic concept of complementarity in organizational design, along with prior findings from studies of client-vendor relationships, to explain the IT vendors' value proposition. We further explain how vendors can offer benefits that cannot be readily replicated internally by client firms.
711 citations
Posted Content•
TL;DR: In this article, the role of trust encompasses the exchanges and interactions of a retail bank with its customers on various dimensions of online banking and lays stress on the bank-to-customer exchanges taking place through the technological interface.
Abstract: The role of trust encompasses the exchanges and interactions of a retail bank with its customers on various dimensions of online banking. Specifically lays stress on the bank-to-customer exchanges taking place through the technological interface. Hypothesizes shared value, communication and opportunistic behaviour as antecedents to trust. Trust and commitment also have a causal relationship. Proposes and empirically tests five hypotheses with a sample of 510 Internet users of various profiles in India. Develops a structural equation model (Lisrel) and establishes all hypotheses. Observes that shared value is most critical to developing trust as well as relationship commitment. Communication has a moderate influence on trust, while opportunistic behaviour has significant negative effect. Also finds higher perceived trust to enhance significantly customers' commitment in online banking transaction. An important contribution concerns how trust is developed and sustained over different levels of customer relationship in online banking. The future commitment of the customers to online banking depends on perceived trust.
648 citations
TL;DR: In this paper, the role of trust encompasses the exchanges and interactions of a retail bank with its customers on various dimensions of online banking, which lays stress on the bank-to-customer exchanges taking place through the technological interface.
Abstract: The role of trust encompasses the exchanges and interactions of a retail bank with its customers on various dimensions of online banking. Specifically lays stress on the bank‐to‐customer exchanges taking place through the technological interface. Hypothesizes shared value, communication and opportunistic behaviour as antecedents to trust. Trust and commitment also have a causal relationship. Proposes and empirically tests five hypotheses with a sample of 510 Internet users of various profiles in India. Develops a structural equation model (Lisrel) and establishes all hypotheses. Observes that shared value is most critical to developing trust as well as relationship commitment. Communication has a moderate influence on trust, while opportunistic behaviour has significant negative effect. Also finds higher perceived trust to enhance significantly customers’ commitment in online banking transaction. An important contribution concerns how trust is developed and sustained over different levels of customer relationship in online banking. The future commitment of the customers to online banking depends on perceived trust.
539 citations
TL;DR: It is shown that the benefit of using CRM and KM can be enhanced and the risk of failure reduced by integrating both approaches into a customer knowledge management (CKM) model.
Abstract: The concepts of customer relationship management (CRM) and knowledge management (KM) both focus on allocating resources to supportive business activities in order to gain competitive advantages. CRM focuses on managing the relationship between a company and its current and prospective customer base as a key to success, while KM recognizes the knowledge available to a company as a major success factor. From a business process manager’s perspective both the CRM and KM approaches promise a positive impact on cost structures and revenue streams in return for the allocation of resources. However, investments in CRM and KM projects are not without risk, as demonstrated by many failed projects. In this paper we show that the benefit of using CRM and KM can be enhanced and the risk of failure reduced by integrating both approaches into a customer knowledge management (CKM) model. In this regard, managing relationships requires managing customer knowledge – knowledge about as well as from and for customers. In CKM, KM plays the role of a service provider, managing the four knowledge aspects: content, competence, collaboration and composition. Our findings are based on a literature analysis and six years of action research, supplemented by case studies and surveys.
462 citations
Book•
01 Jan 2003
TL;DR: This paper presents a meta-analysis of data mining methods used in the management of business cases and some of the techniques used in this analysis were previously described in the preface.
Abstract: Preface.1. Introduction.PART I: METHODOLOGY.2. Organisation of the data.3. Exploratory data analysis.4. Computational data mining.5. Statistical data mining.6. Evaluation of data mining methods.PART II: BUSINESS CASES.7. Market basket analysis.8. Web clickstream analysis.9. Profiling website visitors.10. Customer relationship management.11. Credit scoring.12. Forecasting television audience.Bibliography.Index.
443 citations
TL;DR: In this paper, a theoretical framework for supplier management and customer relationship strategies, supply chain management strategy, and firm performance using structural equation modeling is developed and analyzed using a comprehensive survey circulated to a wide variety of U.S. and European business executives.
Abstract: This research develops and analyzes a theoretical framework for supplier management and customer relationship strategies, supply chain management strategy, and firm performance using structural equation modeling. Data used in the paper were collected from a comprehensive survey circulated to a wide variety of U.S. and European business executives. Based on the findings, a clearer picture of the practice and benefits of SCM and its strategic implications emerges.
414 citations
TL;DR: In this paper, a conceptual framework about the internal processes involved in creating customer knowledge competence, which allow firms to strategically manage their CRM programs, is proposed based on five case studies of Canadian financial services firms that have implemented customer relationship programs.
387 citations
TL;DR: The case study illustrates that CRM is a complex and holistic concept, organised around business processes and the integration of information technologies, and that implementing CRM requires effective leadership, sourcing, targeting and evaluation strategies.
Abstract: The number of customer relationship management (CRM) implementations has grown dramatically in recent years. However, few academic studies of the issues associated with the implementation of the concept are available. This paper offers a modest contribution through the analysis of a case study of a CRM implementation at a UK‐based manufacturing company. The case study illustrates that CRM is a complex and holistic concept, organised around business processes and the integration of information technologies. The study also highlights that implementing CRM requires effective leadership, sourcing, targeting and evaluation strategies.
TL;DR: In this article, the authors proposed a customer-oriented approach to evaluate the effectiveness of customer relationship management (CRM) activities in e-commerce, and measured the intangible attributes of these benefits such as value enhancement, effectiveness, innovation, and service improvement.
Book•
17 Dec 2003TL;DR: In this paper, the authors present a review of the benefits of CRM in terms of customer experience, customer acquisition, customer portfolio management, sales force automation, and analytical CRM.
Abstract: Section A 1.Introduction to CRM 2.Understanding Relationships Section B: Strategic CRM 3.Managing the Customer Lifecycle: Customer Acquisition 4.Managing the Customer Lifecycle: Customer Retention and Development 5.Customer Portfolio Management 6.How to Deliver Customer-Experienced Value 7.Managing Customer Experience Section C: Operational CRM 8.Sales force automation 9.Marketing Automation 10.Service Automation Section D: Analytical CRM 11.Developing and Managing Customer-Related Databases 12.Using Customer-Related Data Section E: Realizing the Benefits of CRM 13.Planning to Succeed 14.Implementing CRM Section F: Looking to the Future 15.The Future
TL;DR: In this paper, the authors investigate the extent of the usage of customer and market-related knowledge management (KM) instruments and customer relationship management (CRM) systems by Greek organizations and their relationship with demographic and organizational variables.
Abstract: Current competitive challenges induced by globalization and advances in information technology have forced companies to focus on managing customer relationships, and in particular customer satisfaction, in order to efficiently maximize revenues. This paper reports exploratory research based on a mail survey addressed to the largest 1,000 Greek organizations. The objectives of the research were: to investigate the extent of the usage of customer‐ and market‐related knowledge management (KM) instruments and customer relationship management (CRM) systems by Greek organizations and their relationship with demographic and organizational variables; to investigate whether enterprises systematically carry out customer satisfaction and complaining behavior research; and to examine the impact of the type of the information system used and managers’ attitudes towards customer KM practices. In addition, a conceptual model of CRM development stages is proposed. The findings of the survey show that about half of the organizations of the sample do not adopt any CRM philosophy. The remaining organizations employ instruments to conduct customer satisfaction and other customer‐related research. However, according to the proposed model, they are positioned in the first, the preliminary CRM development stage. The findings also suggest that managers hold positive attitudes towards CRM and that there is no significant relationship between the type of the transactional information system used and the extent to which customer satisfaction research is performed by the organizations. The paper concludes by discussing the survey findings and proposing future research.
TL;DR: In this article, the authors proposed that antecedent states such as an ongoing rapport with service employees can also provide service recovery benefits, and four independent studies test this approach and indicate that an existing rapport between the customer and service provider results in increased post failure customer satisfaction, increased repatronage intentions, and decreased negative word of mouth.
Abstract: Researchers and practitioners have invested heavily in identifying effective complaint management strategies. However, most of the strategies identified to date occur only after a service failure occurs. This article proposes that antecedent states such as an ongoing rapport with service employees can also provide service recovery benefits. Four independent studies test this approach and indicate that an existing rapport between the customer and service provider results in increased postfailure customer satisfaction, increased repatronage intentions, and decreased negative word of mouth. Yet results for complaint intentions suggest that rapport does not increase the propensity for customers to complain about poor service. These results are discussed in terms of their implications for research and practice.
TL;DR: In this paper, a mixed data factor analyzer was proposed to combine information from a survey with data from the customer database on service usage and transaction volume, to make probabilistic predictions of ownership of services with the service provider and with competitors.
TL;DR: In this article, the authors proposed an integrated framework for CRM through the application of knowledge management technology, which can be the basis for enhancing CRM development by integrating traditional customer relationship management (CRM) functionalities with the management and application of the customer-related knowledge.
Abstract: Given the important role being played by knowledge management (KM) systems in the current customer-centric business environment, there is a lack of a simple and overall framework to integrate the traditional customer relationship management (CRM) functionalities with the management and application of the customer-related knowledge, particularly in the context of marketing decisions. While KM systems manage an organization's knowledge through the process of creating, structuring, disseminating and applying knowledge to enhance organizational performance and create value, traditional CRM have focused on the transactional exchanges to manage customer interactions. True CRM is possible only by integrating them with KM systems to create knowledge-enabled CRM processes that allow companies to evaluate key business measures such as customer satisfaction, customer profitability, or customer loyalty to support their business decisions. Such systems will help marketers address customer needs based on what the marketers know about their customers, rather than on a mass generalization of the characteristics of customers. We address this issue in this paper by proposing an integrated framework for CRM through the application of knowledge management technology. The framework can be the basis for enhancing CRM development. Copyright © 2003 John Wiley & Sons, Ltd.
01 Jan 2003
TL;DR: A customer centric enterprise that places the demands and wishes of each single customer in the center of value creation implies much more than investing in advanced technologies as mentioned in this paper, and the missing gap is the capacity to put the systems, including organization, process and business models together and make them customer-centric.
Abstract: More than two decades later, in 2003, this prophecy is still a vision not only in the clothing business but also in most other industries. What causes the renowned futurist miss the mark? Though we have most, if not all, the necessary hardware, software, powerful computing and communication systems, including laser cutting, high performance sewing etc, we are still not really able to meet the special yearning of human beings, that very important feature that sets us apart from animals, i.e. creativity. We believe the missing gap is the capacity to put the systems, including organization, process and business models together and make them customer centric. Building a customer centric enterprise that places the demands and wishes of each single customer in the center of value creation implies much more than investing in advanced technologies. Firms have to build not organizations and structures to produce customized services, but organizations and structures for customers. With the customers at the center, human beings can then focus on being creative and be isolated from mundane tasks in order to concentrate on expressing themselves more freely.
Patent•
23 Jan 2003
TL;DR: In this article, a data integration system and method collects and stores customer information from disparate information sources in real-time, and stored information can be retrieved and assembled for presentation to a user according to the role and/or security profile of the user.
Abstract: A data integration system and method collects and stores customer information from disparate information sources in real-time. The stored information can be retrieved and assembled for presentation to a user according to the role and/or security profile of the user. The customer information is presented through a 360° viewer, which is embedded in an application or a browser, or runs as a standalone viewer. A data correlation system and method correlates data records collected from disparate Customer Relationship Management (CRM) applications using a three-tier approach comprising deterministic correlation, heuristic correlation and historical correlation. The correlation rules are fully configurable and extensible.
TL;DR: In this paper, the authors examine how electronic government is being used in the delivery and improvement of public services in the UK, and the actual and potential problems inherent in this, highlighting a number of problematic issues surrounding its use.
Abstract: This paper examines how electronic government is being used in the delivery and improvement of public services in the UK, and the actual and potential problems inherent in this. Although there have been examples of very creative use of electronic government in the public sector, there have also been numerous spectacular failures. This paper highlights a number of problematic issues surrounding its use. These include the fact that government's two central aims, namely high quality customer service and value‐for‐money, could potentially be in conflict; and the lack of evidence to support the claim that the use of technology in service delivery results in less bureaucracy and increased quality. Clearly these tensions and issues need to be much more fully explored so that a “government for people” can be created. The paper concludes by posing the question: Can e‐government produce truly innovative, responsive public services, or merely exacerbate electronically, existing shortcomings?
TL;DR: In this article, the role of ethical sales behavior, as perceived by bank customers, in developing and maintaining relationships with customers was analyzed and it was shown that a salesperson's ethical behaviour leads to higher customer satisfaction, trust and loyalty to the bank that the salesperson represents.
Abstract: The need to be customer-focused to the highly changing marketing environment has never been more important for financial services institutions. However, under the present circumstances, where customers are becoming more demanding and increasingly mobile between competing financial providers, being customer-oriented is not enough. Financial services companies, and more specifically, their contact employees (e.g. salespeople) need to be perceived as ethical by their customers. This research represents an initial step in analysing the role of ethical sales behaviour, as perceived by bank customers, in developing and maintaining relationships with customers. The findings revealed that a salesperson’s ethical behaviour leads to higher customer satisfaction, trust and loyalty to the bank that the salesperson represents. Managerial and research implications are also discussed.
TL;DR: The case serves to identify the governing factors for successful organization–stakeholder relations, and how these may have a bearing on the development of effective e-transformation strategies, and an important contribution of this study is the proposal of a development model of relationships in organizations for an understanding into how organizations can be efficiently managed to bring about an effective overhaul of business processes.
Abstract: Continuous organizational transformation is becoming a common phenomenon as public agencies rapidly embrace new information technologies (IT) to streamline and re-invent their obsolete operations. However, due to the overwhelming extent of the necessary changes as well as the sheer diversity of stakeholders involved in transforming corporate functions practitioners are finding it difficult to manage the level of dynamism required in the effort. In an attempt to shed some light on the phenomenon of managing e-transformation, this paper examines in-depth an e-government initiative. Through the study of how one organization in the public sector adapts to the dynamic customer relations brought about by e-transformation, the case serves to identify the governing factors for successful organization-stakeholder relations, and how these may have a bearing on the development of effective e-transformation strategies. An important contribution of this study is the proposal of a development model of relationships in organizations for an understanding into how organization-stakeholder relationships can be efficiently managed to bring about an effective overhaul of business processes.
TL;DR: In this paper, the theoretical foundations for the measurement of a multiphase model of customer loyalty development are discussed and a methodology is discussed which highlights the phases in the development of a scale to measure customer loyalty.
Abstract: This paper discusses the theoretical foundations for the measurement of a multiphase model of customer loyalty development. A hypothesis is specified and a methodology discussed which highlights the phases in the development of a scale to measure customer loyalty. Based on this a measurement scale has been developed. The scale is described and justified in terms of its validity and reliability. Finally, the stage is set for the planned use of the scale to measure the different phases of customer loyalty.
TL;DR: In this paper, the authors report findings from a survey, which looked into determinants of customer satisfaction in the retail banking in Pakistan and conclude that there was a strong relationship between service quality and customer satisfaction, however, no relationship between customer satisfaction and tangible aspects of the service environment.
Abstract: Customer satisfaction is a significant issue for most marketers. Previous research has identified various factors that determine customer satisfaction in retail banking sector in Western countries. The current paper reports findings from a survey, which looked into determinants of customer satisfaction in the retail banking in Pakistan. A total of 300 questionnaires were randomly distributed to customers of a specific bank in Pakistan. Results indicate that there was a strong relationship between service quality and customer satisfaction. There was, however, no relationship between customer satisfaction and tangible aspects of the service environment. The paper discusses implications for bank management.
TL;DR: In this paper, the impact of e-business developments on internal customer service with a focus on electronic procurement introduction is addressed, and the authors conclude that internal customer satisfaction is central to the success of e•procurement deployment and is a significant determinant of the cost benefits to be gained from its adoption.
Abstract: E‐business developments represent a significant step in the evolution of inter‐organisational systems (IOS). Their impact on external supply chains is a major area of discussion and analysis in the literature, principally examining issues of governance structure and process efficiencies. This paper, however, addresses issues relating to the impact of e‐business developments on internal customer service with a focus on electronic procurement introduction – in other words it concentrates on the intra‐organisational system dynamics of e‐business. The procurement process is the basis for one of the primary internal customer‐provider interfaces and thus presents a valid and useful domain of study in internal customer service. In contributing to the emerging e‐service field the article first contends that much of the recent research into e‐service has taken a primarily external customer focus. However, reports suggest that the potential of e‐business comes from applications both within and between businesses. Consequently, this paper focuses on the findings relating to internal e‐service obtained from an extensive, primarily qualitative and exploratory, research programme incorporating 97 organisations. The article concludes that internal customer satisfaction is central to the success of e‐procurement deployment and is a significant determinant of the cost benefits to be gained from its adoption.
TL;DR: A conceptual framework is defined to examine the relationships among and between these five research areas within e-CRM and to propose how they might be integrated to further research this area.
Abstract: In this paper, we approach electronic commerce Customer Relationship Management (e-CRM) from the perspective of five research areas. Our purpose is to define a conceptual framework to examine the relationships among and between these five research areas within e-CRM and to propose how they might be integrated to further research this area. We begin with a discussion of each of the research areas through brief reviews of relevant literature for each and a discussion of the theoretical and strategic implications associated with some CRM technologies and research areas. Next we present our framework, which focuses on e-CRM from the five research perspectives. We then present a theoretical framework for e-CRM in terms of the five research areas and how they affect one another, as well as e-CRM processes and both performance and non-performance outcomes.
TL;DR: In this article, canonical correlation analysis is performed to investigate the relationship between switching costs and customer loyalty in a mobile phone operator and data are collected among corporate customers of a mobile operator.
Abstract: Switching costs are known to influence customer loyalty. This paper primarily investigates which dimensions of switching costs affect which dimensions of customer loyalty. Data are collected among corporate customers of a mobile phone operator and canonical correlation analysis is undertaken to investigate these relationships. Managerial implications are discussed, limitations are noted and future research directions are indicated.
TL;DR: In this article, the authors examine the impact of consumer involvement on consumers' willingnessness to engage in relationships with service providers, because healthy relationships between consumers and service providers depend on the voluntary participation of consumers in relationships.
Abstract: The authors examine the impact of consumer involvement on consumers'willingness to engage in relationships with service providers, because healthy relationships between consumers and service providers depend on the voluntary participation of consumers in relationships. They also examine the effect that involvement has on consumers' expectations of relational efforts by the service provider. On the basis of survey results from the telecom and health sector, the authors' results indicate that more involved consumers express greater interest in engaging in relationships with service providers. Also, although high-involvement customers do not differ from their low-involvement counterparts in terms of their expectations that their service providers communicate with them regularly and be price-competitive, they express a greater desire for fairness in treatment and being involved in solutions to their problems. These results indicate that the opportunity exists to engage high-involvement customers in long-term ...
Journal Article•
TL;DR: In this paper, the authors predict that current trends toward restructured supply networks and improved coordination will continue, with more supplier integration and a proliferation of product customization, business complexity and uniquely defined customer relationships.
Abstract: Over the last decade, supply-chain-management concepts have sparked a boom in internal cross-business coordination. But although definitions have broadened and shifted, many executives believe that the field is mainly about installing IT systems for streamlined processes. Wrong, say two researchers from Dartmouth's Tuck School of Business. Their data on companies that lead in supply-chain management illuminate six ways it spurs more-creative thinking on growing a business.
The researchers predict that current trends toward restructured supply networks and improved coordination will continue, with more supplier integration and a proliferation of product customization, business complexity and uniquely defined customer relationships. But supply-chain management also will affect industry structure in new ways.
Companies in the middle of the supply chain ? contract manufacturers, logistics-service providers and distributors ? will redefine themselves. Also, rebranding and repositioning will occur. Companies across the chain will vie for control of the customer relationship and will find that when value propositions derive from supply-chain capabilities, new cobranding and copositioning strategies are critical. When executives look back after another decade, they'll understand that supply-chain management, having shifted business focus in its first 10 years, created an opportunity for the second 10 years to redefine the competitive landscape.
Book•
15 Jan 2003
TL;DR: In this paper, the Value Profit Chain is used to measure and communicate the value of a customer's lifetime value, and the Value Exchange is used for managing the value exchange between customers and employees.
Abstract: Contents Preface Introduction PART I Achieving Value-Centered Change 1. The Value Profit Chain 2. Rethinking the Business Using Value-Centered Concepts PART II Getting Management's Attention 3. Measuring and Communicating Customer Lifetime Value 4. Measuring and Communicating Employee Value 5. Mobilizing for Change: Challenging Strong Cultures PART III Engineering Value Profit Change 6. The Performance Trinity and the Value Profit Chain 7. Employee Relationship Management Treating Employees Like Customers 8. Customer Relationship Management Treating Customers Like Employees 9. Managing by Value Exchange 10. Leveraging Value over Cost PART IV Cementing the Gains 11. Identifying and Revisiting Core Values 12. Developing Value-Centered Measurement and Recognition 13. Hardwiring Performance 14. Leading the Organization to Learn and Innovate Afterword Appendix A: Compendium of Value Profit Chain Research Appendix B: The Value Profit Chain Audit Appendix C: Calculating the Lifetime Value of a Customer Notes Index