The CRM behaviour theory – Managing corporate customer relationships in service industries

Abstract

This article illustrates a Grounded Theory-based approach towards the discovery of the CRM Behaviour Theory. The CRM Behaviour Theory represents seven inter-related perspectives of Customer Relationship Management (CRM) relating to managing corporate customer relationships in service industries such as telecommunications. To gain a fresh perspective on CRM, an amended Glaserian Grounded Theory-based research methodology is proposed. This involved 52 personal interviews with service providers and their corporate clients. The results suggested taking a holistic view on CRM holons (a holon is defined as a system that is a whole system itself as well as being part of other systems) comprising seven interrelated pattern-like views. Leadership and an integrated approach are found to be critical, but not software. Software-centred approaches fail to deliver long-term results because of their exclusion of ‘soft’ issues, in particular organisational culture.