Showing papers on "Customer relationship management published in 2012"
TL;DR: The authors discusses the nature and sometimes negative consequences of the dominating marketing paradigm of today, marketing mix management, and furthermore discusses how modern research into, for example, industrial marketing and services marketing as well as customer relationship economics shows that another approach to marketing is required.
Abstract: Discusses the nature and sometimes negative consequences of the dominating marketing paradigm of today, marketing mix management, and furthermore discusses how modern research into, for example, industrial marketing and services marketing as well as customer relationship economics shows that another approach to marketing is required This development is supported by evolving trends in business, such as strategic partnerships, alliances and networks Suggests relationship marketing, based on relationship building and management, as one emerging new marketing paradigm of the future Concludes that the simplicity of the marketing mix paradigm, with its Four P model, has become a straitjacket, fostering toolbox thinking rather than an awareness that marketing is a multi‐faceted social process, and notes that marketing theory and customers are the victims of today′s mainstream marketing thinking By using the notion of a marketing strategy continuum, discusses a number of consequences of a relationship‐type ma
1,072 citations
TL;DR: In this article, the role of social media in the sales force and the sales process is discussed, and four business strategies to determine who "owns" social media within an organization are discussed.
Abstract: Technology-based research has a long, storied history in the sales discipline. Beginning with the role of computers to laptops, moving to the influence of the Internet, onward to customer relationship management and sales force automation applications, and now to the role of social media, sales research is being shuttled into a new technological paradigm. The purpose of this paper is to review the role of social media in the sales force and the sales process. We begin the paper by providing definitions of social media and reviewing the role and importance of social media in business. An analogy between the rise of Internet usage in the sales force and the advent of social media is presented and discussed. Next, we discuss the challenges of social media in the sales and marketing interface and review four different business strategies to determine who “owns” social media within an organization. We continue with a discussion of the different stages in the sales process and offer ways in which social media i...
402 citations
TL;DR: In this article, the authors used structural equation modeling to find that social media has a positive relationship with sales processes (creating opportunities and relationship management) and relationship sales performance, and found that the use of social media (e.g., LinkedIn and Twitter) for reaching business-to-business clients is a relatively new phenomenon with performance outcomes essentially unknown.
Abstract: The implementation of social media technology in a firm’s marketing strategy has been adopted by some forward-thinking sales forces. Sharing content and building a network of contacts are the principles behind social media. The utilization of social media (e.g., LinkedIn and Twitter) for reaching business-to-business clients is a relatively new phenomenon with performance outcomes essentially unknown. Data were collected from 1,699 business-to-business salespeople from over 25 different industries. Using structural equation modeling, the findings support that social media has a positive relationship with sales processes (creating opportunities and relationship management) and relationship sales performance.
270 citations
TL;DR: In this paper, the authors present a conceptual framework that extends a traditional view of CRM by incorporating social media technologies, and suggest how these technologies can lead to greater firm performance.
Abstract: In response to the dramatic social and technological shifts that are now shaping business–customer relationships, businesses are finding it necessary to alter their approach toward customer relationship management (CRM) and develop new capabilities that facilitate customer value co-creation. This paper presents a conceptual framework that extends a traditional view of CRM by incorporating social media technologies, and it suggests how these technologies can lead to greater firm performance. Forwarding this framework has two goals. First, despite the common use of the term “social CRM,” there is no clear linkage between the existing body of CRM literature and the extensions provided by the social and technological developments in recent years. The proposed framework attempts to provide this linkage and to expand the view of how CRM can influence firm performance in the age of the social customer. The second goal is to provide managers with a depiction of how existing CRM investments and resources can be in...
260 citations
TL;DR: In this paper, the authors synthesize current knowledge pertaining to loyalty programs, reconcile opposing findings by exploring the conditions that mediate and moderate the effects of LP participation on consumer responses, and chart important avenues for research.
Abstract: Loyalty programmes (LPs) have increased in number and popularity, but their effects on customer behaviour remain equivocal, due to a lack of understanding of the drivers of LP effectiveness and insufficient generalizable conclusions across prior studies. This paper synthesizes current knowledge pertaining to LPs, reconciles opposing findings by exploring the conditions that mediate and moderate the effects of LP participation on consumer responses, and charts important avenues for research. Overall, we find that LPs are effective in increasing consumer purchase behaviours over time, but the impact differs across consumer segments and markets. Currently, neither firms nor consumers fully benefit from the opportunities that LPs offer. To that end, we identify aspects which help researchers and practitioners increase their understanding of LP benefits and pitfalls. Through this study, companies that already have LPs will be able to improve their performance, and those that are about to introduce one will better understand the implications of the LP launch.
222 citations
TL;DR: Empirical research suggests the NC measurement model as reliable and valid with regard to two main exchange partners: suppliers and business customers and also supported through regression model with company performance as the dependent variable.
216 citations
TL;DR: In this paper, a case study of using data mining techniques in customer-centric business intelligence for an online retailer is presented, where customers of the business have been segmented into various meaningful groups using the k-means clustering algorithm and decision tree induction.
Abstract: Many small online retailers and new entrants to the online retail sector are keen to practice data mining and consumer-centric marketing in their businesses yet technically lack the necessary knowledge and expertise to do so. In this article a case study of using data mining techniques in customer-centric business intelligence for an online retailer is presented. The main purpose of this analysis is to help the business better understand its customers and therefore conduct customer-centric marketing more effectively. On the basis of the Recency, Frequency, and Monetary model, customers of the business have been segmented into various meaningful groups using the k-means clustering algorithm and decision tree induction, and the main characteristics of the consumers in each segment have been clearly identified. Accordingly a set of recommendations is further provided to the business on consumer-centric marketing. SAS Enterprise Guide and SAS Enterprise Miner are used in the present study.
203 citations
TL;DR: In this article, a measurement model of customer relationship management (CRM) capabilities, and the key antecedents and performance consequences of CRM capabilities are explored. But, the measurement model is limited to three factors: customer interaction management capability, customer relationship upgrading capability and customer win-back capability.
Abstract: Purpose – This study seeks to extend the resource‐based view to the context of customer relationship management. It is intended to develop a measurement model of customer relationship management (CRM) capabilities, and to explore the key antecedents and performance consequences of CRM capabilities.Design/methodology/approach – Questionnaire survey was used to collect data. In order to develop a reliable and valid measurement model of CRM capabilities, several rounds of questionnaire survey were conducted, and hypotheses were tested by utilizing the technique of structural equation modeling.Findings – A three‐factor (customer interaction management capability, customer relationship upgrading capability and customer win‐back capability) measurement model of CRM capabilities is developed and tested. Furthermore, results support the hypothesized influences of customer orientation, customer‐centric organizational system and CRM technology on CRM capabilities, as well as the influence of CRM capabilities on org...
200 citations
TL;DR: In this article, the authors examined the relationship between exploration and exploitation innovation and business performance in small and medium enterprise (SME) service firms, and examined the interaction between the two innovation orientations in predicting business performance.
Abstract: Purpose – The purpose of this paper is to examine the relationship between exploration and exploitation innovation, and business performance in small and medium enterprise (SME) service firms. Furthermore, the paper also examines the interaction between the two innovation orientations in predicting business performance, and the influence of size in the effectiveness of each of them in enhancing business performance.Design/methodology/approach – Using empirical data drawn from 180 managers in Australian service organisations, this study also compares the effect of ambidextrous innovation on business performance within these SMEs.Findings – The findings show that, controlled for size, neither of the innovation orientations show significant, direct relationships with firms' performance. However, ambidextrous innovation was positively associated with business performance, indicating a synergy between exploration and exploitation. Further examination indicates the relationship between exploration/exploitation ...
183 citations
TL;DR: The authors find that the risks of depleting customer trust as they perceive themselves being exploited by firm's CRM offerings should be openly discussed, as it poses a significant threat to the CRM scheme if it is overly used and misused.
Abstract: Purpose – The purpose of this paper is to provide academics and practitioners working with customer relationship management (CRM) with a review of key topics, such as advances in CRM, the shifting role of consumers, issues with conceptualisation and consumer exploitation. The authors further integrate concepts of fairness, trust and paradoxes of one‐to‐one marketing, which are little researched within customer management. As a result, the authors suggest eight propositions for improving the CRM scheme.Design/methodology/approach – This paper reviews extant literatures in CRM, with a particular emphasis on the pitfalls of CRM.Findings – The authors find that the risks of depleting customer trust as they perceive themselves being exploited by firm's CRM offerings should be openly discussed, as it poses a significant threat to the CRM scheme if it is overly used and misused.Practical implications – It is proposed that the concept of dual value‐creation and win‐win relationships are fundamental to successful ...
179 citations
TL;DR: Wang et al. as mentioned in this paper investigated the implementation of customer relationship management (CRM) and its effect on relationship marketing (RM) and business performance, through an analysis of the hotel industry in Taiwan.
TL;DR: In this article, the authors investigate the link between corporate culture, indicators of innovativeness and business performance in the Swiss hotel industry, because the Swiss have a proclivity toward innovation as well as a long established record in hospitality management.
TL;DR: In this paper, the authors investigate the role of Web 2.0 and social media in relationship marketing (RM) in banking, and find that some banks resist the Web2.0 trend, how this is aligned with their RM approaches and what the alternative paths for advancing customer relations could be.
Abstract: Purpose – The purpose of this paper is to investigate the role of Web 2.0 and social media in relationship marketing (RM) in banking. The aim is to understand why some banks resist the Web 2.0 trend, how this is aligned with their RM approaches and what the alternative paths for advancing customer relations could be. The paper focuses on the practices of banks in the less‐researched yet dynamically evolving South East European (SEE) region.Design/methodology/approach – A qualitative case study approach was employed for this study. In total, three case studies were constructed, describing practices and RM approaches of retail banks in SEE. Data used for the construct of case studies were collected through in‐depth interviews with top management, documentation and banks’ official web sites.Findings – Primary reasons for refraining from social media included: low customer demand for such form of interaction with banks; concerns over safety of Web 2.0 for banking; and lack of alignment with current RM strateg...
TL;DR: In this article, the authors examined the impact of experience, scale of operation and financial resources as well as informational, customer relationship and product development capabilities on dimensions of export venture performance.
Book•
21 Oct 2012
TL;DR: In this article, the role of CRM and relationship marketing in B2B and B2C scenarios is discussed, as well as the future of CRMs and their applications.
Abstract: Preface.- 1 The Role of CRM.- 2 Relationship Marketing.- 3 Strategic CRM.- 4 Implementing the CM Strategy.- 5 CRM Metrics.- 6 Data Mining.- 7 Using Databases.- 8 Software Tools and Dashboards.- 9 Designing Loyalty Programs.- 10 Campaign Management.- 11 CRM and Multichannel Management.- 12 Customer Management in B2B.- 13 CRM and Consumer Behavior.- 14 Application of CRM in B2B and B2B Scenarios.- 15 The Future of CRM.- Index.
Patent•
08 Aug 2012TL;DR: Share of Wallet (SOW) is a modeling approach that utilizes various data sources to provide outputs that describe a consumers spending capability, tradeline history including balance transfers, and balance information as discussed by the authors.
Abstract: Share of Wallet (“SOW”) is a modeling approach that utilizes various data sources to provide outputs that describe a consumers spending capability, tradeline history including balance transfers, and balance information. These outputs can be appended to data profiles of customers and prospects and can be utilized to support decisions involving prospecting, new applicant evaluation, and customer management across the lifecycle. The outputs can be used as attributes to consider in developing a credit bureau scorecard.
TL;DR: In this paper, a cross-industrial study among 209 Finnish companies suggests that a technology orientation enhances all dimensions of innovation radicalness, whereas a customer relationship orientation positively affects the technological and business model dimensions.
TL;DR: It is suggested that beyond the ease of use and usefulness of information system, companies have to take advantage of customer relationship built up in the offline environment that has the potential to influence customers’ use intention towards Internet service.
Abstract: The cost-effectiveness of operations on the Web enables financial service firms to employ Web technology to replace or substantially reduce the need for personal interactions in the provision of their services. However, recent cases have shown that the use of Web technology in financial services may not be as promising as expected. This study utilises the constructs derived from transaction cost analysis TCA, the technology acceptance model TAM and relationship marketing literature to develop a framework of the antecedents to using Internet banking. The model explicitly incorporates the impact of the experiences a customer has had with services provided by the physical bank whose Web services the customer is considering using. The results show that the major antecedent variables in TAM and the customers’ specific assets already invested in the focal physical bank have a significant impact on customers’ attitude towards the use and the intention to use a bank's Internet banking services. Our findings suggest that beyond the ease of use and usefulness of information system, companies have to take advantage of customer relationship built up in the offline environment that has the potential to influence customers’ use intention towards Internet service. The study advances the technology acceptance literature in terms of explaining users’ new-service-adoption behaviour by adding the concepts from TCA and customer relationship literature.
TL;DR: In this article, the authors propose and empirically test a model of different aspects of ISO 9000 implementation in terms of their relationships with three key supply chain (SC) management practices (internal processes, supplier relationships, and customer relationships) in order to examine the relationship between the three key SC activities and operational performance.
Abstract: Purpose – The purpose of this paper is to propose and empirically test a model of different aspects of ISO 9000 implementation in terms of their relationships with three key supply chain (SC) management practices (internal processes, supplier relationships, and customer relationships) In addition, it aims to examine the relationship between the three key SC activities and operational performanceDesign/methodology/approach – Data were collected from 321 middle and senior managers of ISO 9001 certified firms in Australia who were responsible for managing the quality systems in their organizations The structural equation modelling (SEM) technique was employed using LISREL software to test the research model and the hypotheses in this studyFindings – The results show that advanced implementation of ISO 9000 is positively related to all three aspects of SC activities (internal, customer, and supplier process management), while supportive implementation is positively related to internal and customer process
TL;DR: In this paper, the authors investigated the effects of customer relationship management practices on customer satisfaction and firm performance in business-to-business (B2B) markets and found that enhanced customer satisfaction leads to better organizational performance in the B2B organization.
Abstract: Purpose – The purpose of this study is to investigate the effects of customer relationship management (CRM) practices on customer satisfaction and firm performance in business‐to‐business (B2B) markets.Design/methodology/approach – A model is developed and empirically tested through survey data obtained from 113 Turkish B2B companies.Findings – The results indicate that CRM adoption has a significant positive effect on both customer satisfaction and organizational performance in B2B settings. CRM adoption is also found to affect organizational marketing performance significantly, but not financial performance. Additionally, the results reveal that enhanced customer satisfaction leads to better organizational performance in the B2B organization. Environmental dynamism and competition was found to have a negative moderating effect on the relationship between customer satisfaction and organizational performance.Originality/value – The paper contributes to existing literature by incorporating customer‐facing ...
TL;DR: The authors examined the applicability of Fournier's (1998) Brand Relationship Quality (BRQ) framework in the hotel industry, and also investigated the effects of BRQ on hotel consumers' behavioral intentions, after service failures in high-class hotels.
Journal Article•
TL;DR: In this paper, a value conceptual model that explains the theoretical linkages existing between CRM dimensions and hotel performance is proposed to explain the mediation role of marketing capabilities in this relationship.
Abstract: Customer relationship management (CRM) has a growing popularity and is becoming one of the hottest academic and practical topics in the business field. In fact, due to the competitive environment, CRM is crucial and has become a niche for firm performance. However, there is limited research that reveals the relationship between CRM dimensions and hotel performance. Therefore this study is an attempt to provide a value conceptual model that explains the theoretical linkages existing between CRM dimensions and hotel performance. This study serves not only to clarify the relationship between CRM dimensions and hotel performance, but also to explain the mediation role of marketing capabilities in this relationship. Keywords: CRM; Marketing capability; Hotel industry JEL Classifications: M31; L84; L83
TL;DR: In this paper, the authors analyzed the customer databases of five firms and found that 10% to 35% of the customers who cross-buy are unprofitable and account for a significant proportion (39% to88%) of the firms' total loss from its customers.
Abstract: Conventional wisdom, marketing literature, and cross-selling practices to date are based on the notion that customer cross-buying is positively associated with customer profitability. However, this study finds that when certain customers with persistent adverse behavioral traits (e.g., limited spending, excessive revenue reversals, excessive service requests, promotion purchase behavior) engage in cross-buying, they exhibit a downward spiral of unprofitable relationship, with the losses increasing with higher levels of cross-buy. The authors analyze the customer databases of five firms and find that 10%–35% of the firms' customers who cross-buy are unprofitable and account for a significant proportion (39%–88%) of the firms' total loss from its customers. Consequently, the authors present a two-stage framework to enable managers to discern customers who are likely to engage in profitable versus unprofitable cross-buying. Overall, the findings refine the basic understanding of the cross-buy phenom...
TL;DR: This paper proposes to include in partial churn detection models the succession of first products' categories purchased as a proxy of the state of trust and demand maturity of a customer towards a company in grocery retailing.
Abstract: Retaining customers has been considered one of the most critical challenges among those included in Customer Relationship Management (CRM), particularly in the grocery retail sector. In this context, an accurate prediction whether or not a customer will leave the company, i.e. churn prediction, is crucial for companies to conduct effective retention campaigns. This paper proposes to include in partial churn detection models the succession of first products' categories purchased as a proxy of the state of trust and demand maturity of a customer towards a company in grocery retailing. Motivated by the importance of the first impressions and risks experienced recently on the current state of the relationship, we model the first purchase succession in chronological order as well as in reverse order, respectively. Due to the variable relevance of the first customer-company interactions and of the most recent interactions, these two variables are modeled by considering a variable length of the sequence. In this study we use logistic regression as the classification technique. A real sample of approximately 75,000 new customers taken from the data warehouse of a European retail company is used to test the proposed models. The area under the receiver operating characteristic curve and 1%, 5% and 10% percentiles lift are used to assess the performance of the partial-churn prediction models. The empirical results reveal that both proposed models outperform the standard RFM model.
TL;DR: In this article, the authors investigated the development and role of dependence and trust in relationship management from the customer's perspective and their impact on commitment in a business-to-business (B2B) market.
TL;DR: In this article, the authors identify the optimal facets of communication style for customeroriented service employees and examine the ways in which the customer-oriented service employee (COSE) induces luxury restaurant patrons' dedicational behaviors.
TL;DR: A linguistic-based emotion analysis and recognition method for measuring consumer satisfaction and the results indicate that blended emotion recognition is able to gain rich feedback data from customers, which can provide more appropriate follow-up for customer relationship management.
Abstract: A growing body of research suggests that affective computing has many valuable applications in enterprise systems research and e-businesses. This paper explores affective computing techniques for a vital sub-area in enterprise systems—consumer satisfaction measurement. We propose a linguistic-based emotion analysis and recognition method for measuring consumer satisfaction. Using an annotated emotion corpus (Ren-CECps), we first present a general evaluation of customer satisfaction by comparing the linguistic characteristics of emotional expressions of positive and negative attitudes. The associations in four negative emotions are further investigated. After that, we build a fine-grained emotion recognition system based on machine learning algorithms for measuring customer satisfaction; it can detect and recognize multiple emotions using customers’ words or comments. The results indicate that blended emotion recognition is able to gain rich feedback data from customers, which can provide more appropriate follow-up for customer relationship management.
TL;DR: In this paper, the authors examined customer retention in sports organization marketing by considering the impact of team identification and satisfaction with team performance on four fan consumption behaviours: in-person attendance, media-based attendance, purchase of team merchandise and word-of-mouth communication related to the team.
Abstract: Over the past two decades, relationship marketing efforts have assumed a prominent role in sports organization marketing. A sports organization that successfully implements relationship marketing programmes is able to develop long-term relationships with its fans, thus increasing the likelihood of customer retention. This study examines customer retention in sports organization marketing by considering the impact of team identification and satisfaction with team performance on four fan consumption behaviours: in-person attendance, media-based attendance, purchase of team merchandise and word-of-mouth communication related to the team. Survey data were collected from 300 fans of more than 40 professional and collegiate teams involved in seven sports. Results suggest that both team identification and satisfaction with team performance impact multiple consumption behaviours, as represented by fans' intentions to engage in future consumption. Team identification was found to have the greater impact on consumption behaviours, suggesting that a sports organization's continuing efforts to bond with its fans may provide greater benefits than efforts to improve the team's competitive performance.
TL;DR: The results suggest that employees' overall user satisfaction (UserSat) with their mandated use of CRM has a positive impact on employee service quality (ESQ) above and beyond the expected positive impacts that job dedication and embodied service knowledge (ESK) have on ESQ.
Abstract: An increasing number of organizations are now implementing customer relationship management (CRM) systems to support front-line employees' service tasks. With the belief that CRM can enhance employees' service quality, management often mandates employees to use the implemented CRM. However, challenges emerge if/when employees are dissatisfied with using the system. To understand the role of front-line employee users' satisfaction with their mandated use of CRM in determining their service quality, we conducted a field study in one of the largest telecommunications service organizations in China and gathered time-lagged data from self-reported employee surveys, as well as from the firm's archival data sources. Our results suggest that employees' overall user satisfaction (UserSat) with their mandated use of CRM has a positive impact on employee service quality (ESQ) above and beyond the expected positive impacts that job dedication (JD) and embodied service knowledge (ESK) have on ESQ. Interestingly, the positive effect of UserSat on ESQ is comparable to the positive effects of JD and ESK, respectively, on ESQ. Importantly, UserSat and ESK have a substitutive effect on ESQ, suggesting that the impact of UserSat on ESQ is stronger/weaker for employees with lower/higher levels of ESK. Finally, ESQ predicts customer satisfaction with customer service employees (CSWCSE); ESQ also fully mediates the impacts of UserSat and ESK, and partially mediates the impact of JD, on CSWCSE. The results of this study emphasize the importance of user satisfaction in determining employees' task outcomes when use of an information system is mandated.
TL;DR: The authors examined the compatibility between the two practices and discussed the possible management conflicts that occur from both account managers' and revenue managers' viewpoints, revealing several causes of potential management conflicts including: management goals, management timescales, perceived business assets, performance indicators and management foci between CRM and RevM due to divergence occurring in managers' priorities and in their approaches to achieving their individual set goals.