V. Kumar and W. Reinartz – Customer Relationship Management CRM is the strategic process of selecting customers that a firm can most profitably serve . Radio. Internet. Da ily usag e in m inutes. Daily media usage behavior in Germany. Customer Relationship Management Processes proﬁtably exploit innovations in technology and business processes—for example, radio frequency .. For example, Thomas and Reinartz () show that the amount of direct mail sent. Keywords: Customer Relationship Management, Relationship Marketing, Information . Other interesting definition put emphasis on strategies and processes of in B2B environments (Reinartz & Kumar, ), due to the relationship marketing link from one-to-many communications systems (TV, radio advertisements).
Furthermore, since many B2B relationships imply a bond among equals, a real close contact meetings between CEOs, p.
It is very frequent in B2B heavy engineering firms, once they have sold an important piece of machinery to their partner, to offer also their own maintenance services, supported by information and communication technologies. It works as a way for not only diversifying their supply and ensuring new income resources, but also for strengthen their relationships for the sake of obtaining future contracts.
Rolls-Royce can be a good example of this The Economist, It is very common for great brands to have online forums where users can interact between themselves and new services rewards, customer support… can be provided. Thus, we can take advantage from that existent customer base to offer complementary products and services that add more value to their purchases.
Extending the fields of our relationships can grew our income without having to incur in customer acquisition costs. E-commerce usually uses algorithms in order to recommend you what to buy based in your purchase record, and even, like Amazon does, shows products that are frequently bought together. Its practical consequences are not so different from the supply of added customer services: It is visible that CRM aspects related with customer profitability are not isolated, but interdependent: At this point, we have discussed the implications of adopting a CRM perspective in organizations, but CRM is a two-sided coin founded on a quid pro quo proposition.
As deduced from the previous section, customer profitability would not be possible without the delivery of superior value Jensen, that turns the relationship into a win-win situation. The same existence of an economic exchange implicates that both seller and buyer believe that they receive value from it, because if not, there would not be reasons to do it Bagozzi, CMR acknowledges those basic principles and tries to exploit them in its favour. As it tries to eliminate non-profitable customers from the equation, the value exchange can be optimized since the efforts of the firm can be allocated correctly.
Thus, the company will get its revenues increased while the key customers concentrates the value proposition.
Here we have to find a balance between giving the profitable customer a superior value, with the aim to retain him, in exchange for a price that is perceived as fair but that would not undermine the ability of the firm to generate revenues. Here, giving a major role to customers through collaborative interactions can be chance to achieve differentiation, and CRM-based technologies make this task easier.
The Internet and the rise of social medias have facilitated the massive use of one-to-one communications between the firm and its target towards a better understanding and the collection of really relevant data. Consequently, customers are participants in a process that has the ultimate objective to maximize their satisfaction: The proliferation of mass customization could serve as a good example for this: Accordingly, the core idea of S-D Logic consist in focusing the on the service meaning the application of competences to provide benefits rather than the product a.
Therefore, the point about S-D Logic would consist in understanding the true relational nature of value creation in a broader and more comprehensive perspective that recognizes and commits to the necessary collaborative effort of customers and partners, in order to improve our position, so a customer-centric philosophy such as CRM requires it to realise its full potential.
Nevertheless, profit is not the only value that a firm can get from co-creation: This appears to be more obvious in relationships between businesses, whereas value co-creation may encourage the development of jointed investigation projects, shared technologies, financial agreements towards stability Therefore, CRM provides a framework where there is a dependency between both sellers and buyers, as well as their interests can somewhat converge. Once that we have done this review on the subject, we are able to summarize the core points of the research work.
Even known that Customer relationship management is still a concept under academic evolution, researchers have started to agree in understanding it under a wider, multidimensional, and holistic point of view built around a customer-centric thought.
Thus, benefits from its application will only come with an all-level and consistent implementation. That is why CRM opts to put emphasis on those key customers with higher potential profitability, to develop relationships with them. Here elements like customer retention, loyalty, trust, added services, cross selling… can determinate the firm success.
CRM has also its own philosophy regarding with the generation of value: Rather than a passive subject, the customer is a necessary actor; a co-creator that we must take into account in order to gain sustainable competitive advantages.
Being stated the managerial consequences of CRM implementation and its theoretical background, now we are able to issue some advices, with special focus on B2B companies. If not, it is possible that we will get some rigidities and adaptation difficulties, instead of generating synergies. In addition, very optimistic predictions of expected length of the relationship in order to obtain the CLV should be avoided: Investing in maintaining the relationship renewing contracts, exclusivity clauses… can help to retain partners, as it has a safeguard effect.
University of Cologne
Marketing as an Organized Behavioral System of Exchange. Journal of Marketing, A Customer Relationship Management Roadmap: Business Process Management Journal, Marketing's Contribution to the Strategy Dialogue. Journal of the Academy of Marketing Science, Industrial Marketing Management, CRM at the speed of light.
Return on relationships ROR: Obtenido de Gartner Group: Antecedents and consequences of consumer value assessments: Implications for marketing strategy and future research. Journal of Retailing and Consumer Services, Assessing the Service Profit Chain. Harvard Business Review, Insights from service-dominant logic. Journal of Retailing, Relationship marketing and distribution channels: Emerging practice, process and discipline. Techniques for analyzing Industries and Competitors.
The Future of Competition: Co-creating Unique Value with Customers. Harvard Business School Press. The Customer Relationship Management Process: Its Measurement and Impact on Performance.
Journal of Marketing Research, Cross-functional issues in the implementation of relationship marketing through customer relationship management. European Management Journal, Brands have to be there when consumers like to interact.
Recent trends are instant purchasing, subscription-based purchasing, and automated purchasing. Notwithstanding strong managerial and academic interest, an examination of whether and explanations for when and why solutions translate into superior performance are lacking.
We test hypotheses developed from the resource-based theory and transaction cost economics, supplemented with in-depth theory-in-use interviews, on primary and secondary data collected from manufacturers. From a model that corrects for endogeneity, the findings suggest that, compared with other service offerings, solutions are associated with increased return on sales.
This positive profitability effect is enhanced in firms with greater sales capabilities; it is stronger in industries with greater buyer power but weaker in technology-intensive industries. The path to purchase and attribution modeling: Introduction to special section.
International Journal of Research in Marketing, 33 3 As customers go through a series of touch points across media, channels and devices on their paths to purchase, attributing the appropriate credit for each touch point has emerged as an important problem. By focusing on estimating the incremental value of a touch point and spillover effects across channels, attribution models can provide insights for allocating marketing investments across channels and targeting customers across channels and devices.
In this paper, we provide a survey of the state-of-the-art in attribution modeling and analytics. As part of the survey, we also introduce the articles in this special section and position them in our classification framework. Finally, we propose a research agenda to guide future work in the area. Creating enduring customer value.
Journal of Marketing, 80 6 In this study, the authors assume that customer value is a dual concept. First, in order to be successful, firms and the marketing function have to create perceived value for customers. Toward that end, marketers have to measure customer perceived value and have to provide customer perceptions of value through marketing-mix elements. Second, customers in return give value through multiple forms of engagement customer lifetime value, in the widest sense for the organization.
Therefore, marketers need to measure and manage this value of the customer s to the firm and have to incorporate this aspect into real-time marketing decisions. The authors integrate and synthesize existing findings, show the best practices of implementation, and highlight future research avenues.
Crafting a JMR Manuscript. Journal of Marketing Research, 53 February He argues that it is often not the central idea of a piece that falters, but rather the mechanical and stylistic expression of that idea. He posits a straightforward methodology for eschewing ambiguity and appropriately highlighting salient research against a backdrop that is clean and well constructed. Distributing through multiple channels in industrial wholesaling: Journal of the Academy of Marketing Science, 43 6 Click here for abstract.
The simultaneous analysis of the two dimensions of distribution intensity i. Moreover, firms align their distribution intensity to their individual context their business strategy and environmental conditionsleading to efficient intensity levels.
Inefficient intensity levels get penalized by market mechanisms. The results reveal that more is not necessarily better: Feeling good or feeling right? Schmalenbach Business Review, 63 1 The difficulty of measuring and evaluating academic research quality stems from two aspects: Retailing innovations in a globalizing retail market environment.
Journal of Retailing, 87, SS The challenges faced by global and globalizing retailers retailers who currently have or intend to establish a market presence in mature markets, emerging markets and less developed markets can be more daunting compared to those faced by firms in other industries such as automobiles, steel, and computers.
Retailing innovations that are responsive to the characteristics of distinctive national markets and broader aggregations of markets such as mature, emerging and less developed markets are critical to the success of global and globalizing retailers. Against this backdrop, this paper focuses on retailing innovations in the context of a globalizing retailing environment.
It attempts to shed insights into the characteristics of retailing innovations conducive to superior performance in distinctive national markets and across broader aggregations of markets. Second, we show how these challenges can be transformed into opportunities with retailing innovations. We conclude with a roadmap for future research and present propositions on future development with respect to retailing innovations in these markets. Journal of Marketing, 75 6 Goods manufacturers, unlike pure service providers, find themselves in a unique position to grow revenues through hybrid offerings but must learn how to leverage unique resources and build distinctive capabilities.
Using case studies and depth interviews with senior executives in manufacturing companies, the authors develop a resource—capability framework as a basis for research and practice. Executives identify four critical resources: In leveraging these specific resources, successful firms build five critical capabilities: The authors propose a new typology of industrial services and discuss how resources and capabilities affect success across categories of hybrid offers.
Managing marketing channel multiplicity. Journal of Service Research, 13 3 The authors identify the new market operating realities driving channel multiplicity and provide an overview of the consequences for channel design and channel management: The authors also identify issues triggered by these developments, which calls for further research in this field.
Customer engagement as a new perspective in customer management. In an increasingly networked society where customers can interact easily with other customers and firms through social networks and other new media, the authors propose that customer engagement is an important new development in CM.
Customer engagement is considered as a behavioral manifestation toward the brand or firm that goes beyond transactions. The authors propose a conceptual model of the antecedents, impediments, and firm consequences of customer engagement and relate this model to seven articles appearing in the special issue on customer engagement. An empirical comparison of the efficacy of covariance-based and variance-based SEM. International Journal of Research in Marketing, 26 4 During the last 25 years, more than 30 articles have been published in leading marketing journals that have applied this approach instead of the more traditional alternative of covariance-based SEM CBSEM.
However, although an analysis of these previous publications shows that there seems to be at least an implicit agreement about the factors that should drive the choice between PLS analysis and CBSEM, no research has until now empirically compared the performance of these approaches given a set of different conditions.
Our study addresses this open question by conducting a large-scale Monte-Carlo simulation. We show that justifying the choice of PLS due to a lack of assumptions regarding indicator distribution and measurement scale is often inappropriate, as CBSEM proves extremely robust with respect to violations of its underlying distributional assumptions. Additionally, CBSEM clearly outperforms PLS in terms of parameter consistency and is preferable in terms of parameter accuracy as long as the sample size exceeds a certain threshold observations.
Nevertheless, PLS analysis should be preferred when the emphasis is on prediction and theory development, as the statistical power of PLS is always larger than or equal to that of CBSEM; already, observations can be sufficient to achieve acceptable levels of statistical power given a certain quality of the measurement model. Performance implications of adopting a customer-focused sales campaign.
Journal of Marketing, 72 5 In both the experiments, salespeople adopting the customer-focused sales campaign coordinated their sales calls with the objective of selling all the products that a customer was predicted to purchase only at the time the customer was expected to purchase. The authors compare this strategy with the current practice in the organization in which salespeople for each product category independently contacted the customers who were expected to purchase in that category without any guidance on the expected timing of customer purchase.
The experiments show that adopting a customer-focused sales campaign can significantly increase firm profits and return on investment. High-revenue customers were the source of improvements in the efficiency of marketing contacts, whereas low-revenue customers were the source of improvements in the effectiveness of the marketing contacts.
A customer-focused sales campaign also improved the relationship quality between the customer and the firm. This research provides empirical evidence for theoretical expectations of the benefits provided by a customer-focused sales campaign. Organizations can use the field experiments illustrated in this study as a template for implementing the first step in migrating to a customer-centric organization.
Journal of Interactive Marketing, 22 1 Despite these claims, debate remains as to whether cross-buying is an antecedent to such behaviors or if loyalty behaviors represent the antecedent, with cross-buying as a consequence. This research investigates the direction, strength, and nature of the relationship between customers' cross-buying behavior and associated behavioral outcomes by using a Granger-type causality modeling and two data sets.
The authors determine that cross-buying is a consequence and not an antecedent of behavioral loyalty. Specifically, behavioral loyalty drives both the number of categories from which a person buys and the level of spending dispersion across those categories. These findings have significant implications for cross-selling strategies.
Determinants of the variety of routes to market. International Journal of Research in Marketing, 24 1 This study investigates whether such heterogeneity in the variety of routes to market can be explained systematically. More specifically, the authors examine how 1 the type and level of a firm's customer orientation and 2 the type and degree of customer search behavior influences the firm's adoption of a variety of routes.
They collect primary data on firms in four consumer industries across three countries to test the hypotheses. The authors find strong evidence for a link between a firm's customer orientation and the breadth of its variety of routes but only partial evidence for a link between customer search behavior and the breadth of the variety of routes. Empirical generalizations from brand extension research: How sure are we?. International Journal of Research in Marketing, 23 3 Do we really know how consumers evaluate brand extensions?
Empirical generalizations based on secondary analysis of eight studies. Journal of Marketing Research, 38, — Consumer evaluations of brand extensions. Journal of Marketing, 54, 27— We re-examine Bottomley and Holden's conclusions. We re-analyze the same data using appropriate statistical techniques, and our new results clarify the understanding of how consumers indeed evaluate extensions. Specifically, we find that, although the simple effects of neither parent brand quality nor measures of fit affect evaluations of brand extensions, the interaction effects of parent brand quality with fit are important determinants of brand extension evaluations.
We discuss the substantive implications of our findings and offer directions for future research. Do intentions really predict behavior?
Self-generated validity effects in survey research. Journal of Marketing, 69 2 In the first stage, the authors use data from surveyed consumers to predict the presurvey latent purchase intentions of both surveyed and nonsurveyed consumers. In the second stage, they compare the strength of the association between the presurvey latent intentions and the postsurvey behavior across both groups. The authors find large and reliable self-generated validity effects across three diverse large-scale field studies.
One study also shows that the reactive effect of the measurement of purchase intentions is entirely mediated by self-generated validity and not by social norms, intention modification, or other measurement effects that are independent of presurvey latent intentions.
Balancing acquisition and retention resources to maximize customer profitability. Journal of Marketing, 69 1 The short-and long-term effects of measuring intent to repurchase. Journal of Consumer Research, 31 3 We find that measuring intentions increases the likelihood of repeat purchase incidence and shortens the time until the first repeat purchase but that these two mere-measurement effects decay rapidly after 3 mo.
Still, we find persisting gains in customer profitability over time because the accelerated purchases of the first 3 mo.
The customer relationship management process: Its measurement and impact on performance. Journal of Marketing Research, 41 3 However, the existing academic literature and the practical applications of customer relationship management CRM strategies do not provide a clear indication of what specifically constitutes CRM processes. In this study, the authors 1 conceptualize a construct of the CRM process and its dimensions, 2 operationalize and validate the construct, and 3 empirically investigate the organizational performance consequences of implementing CRM processes.
Their research questions are addressed in two cross-sectional studies across four different industries and three countries. The first key outcome is a theoretically sound CRM process measure that outlines three key stages: The second key result is that the implementation of CRM processes has a moderately positive association with both perceptual and objective company performance.
The impact of customer relationship characteristics on profitable lifetime duration. Journal of Marketing, 67 1 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.
Seven barriers to customer equity management. Journal of Service Research, 5 1 It illustrates the practice by describing the use of a loyalty program to identify and respond to high-potential customers in the market for business-class hotels. Next, it considers seven challenges that impede wider adoption of customer equity management and concludes with a schematic model of customer-centered marketing management.
Generating non-normal data for simulation of structural equation models using Mattson's method. Multivariate Behavioral Research, 37 2 The efficacy of these Monte-Carlo simulations is closely related to the generation of non-normal data. Traditionally, SEM researchers have used approaches proposed by Fleishman and Vale and Maurelli to generate multivariate non-normal random numbers.
However, both approaches do not provide a method to determine univariate skewness and kurtosis of the observed variables when a non-normal distribution is specified for some or all of the latent variables.
Mattson proposed a method for generating data on the latent variables with controlled skewness and kurtosis of the observed variables. We empirically test the applicability of Mattson's theoretical method in a Monte-Carlo simulation. Our results suggest that Mattson's method seems to be a good approach to generate data with defined levels of skewness and kurtosis.
In addition, based on the results of our analysis, we provide practicing researchers recommendations regarding their empirical implementation schemes. On the profitability of long-life customers in a noncontractual setting: An empirical investigation and implications for marketing.
Journal of Marketing, 64 4 It is beneficial, in general, to serve customers over a longer time, especially in a contractual relationship. However, it is not clear whether some of the findings observed in a contractual setting hold good in noncontractual scenarios: The authors offer four different propositions in this study and subsequently test each one in a noncontractual context. The four propositions relate to whether 1 there exists a strong positive customer lifetime-profitability relationship, 2 profits increase over time, 3 the costs of serving long-life customers are less, and 4 long-life customers pay higher prices.
The authors develop arguments both for and against each of the propositions. The data for this study, obtained from a large catalog retailer, cover a three-year window and are recorded on a daily basis. The empirical findings observed in this study challenge all the expectations derived from the literature. Long-life customers are not necessarily profitable customers.
The authors develop plausible explanations for findings that go against the available evidence in the literature and identify three indicators through discriminant analysis that can help managers focus their efforts on more profitable customers. The authors draw several marketing implications and acknowledge the limitations of the study. Store- market- and consumer-characteristics: The drivers of store performance.