Relationship Management Strategies Research Articles

The evolving data architecture of social customer relationship management

Social media enables the brand to extend its personality to engage with consumers on their terms, at the time, place and channel of their choice. Replacing traditional customer relationship management (CRM) with a Facebook fan site (for instance) presents advantages but also strategic risks for a brand. If knowledge of brand advocates, High-Value Customers, High-Value Prospects and influencers is considered an asset for the business, the asset needs to be owned and managed over time, and that is not possible in the social-only environment. Social and CRM in combination are likely to be more effective than individually. In linking social data with CRM data, multiple identities, privacy and data protection issues, and which data to hold on the database (vs. leave in the social media ‘cloud’) are all challenges that need to be addressed. The social customer relationship management (SCRM) strategy will be driven by marketing, but will have an impact through all the business functions from customer service through to brand marketing. Eight stages of the SCRM strategy are outlined from ‘Listen and Learn’ through to ‘Measure and Evaluate’

Financial implications of rate plan optimization in the post-paid mobile market

In the competitive mobile telecommunications market, rate plans with new pricing structure are introduced regularly. Prior literature reveals that subscribers often overpay for their service because of inappropriate rate plan selection. Having subscribers on financially-optimal rate plans is found to be beneficial from both churn reduction and tenure maximization perspectives. However, the revenue implications of deploying such a customer relationship management strategy have not been thoroughly researched. This paper examines the revenue implications by analysing 1249 post-paid mobile subscribers in Canada over a 44-month period. This research also provides insights into some potential moderators that may influence the strengths of the linkage between rate plan suitability and revenue contribution.

Opportunism in co-production: Implications for value co-creation

This paper examines opportunistic consumer behavior in the context of co-production. Specifically, we identify different types of opportunistic behaviors consumers engage in co-production, interrogate the conditions under which such behaviors may manifest themselves, and examine how they may affect co-creation of value. Theoretically, this paper contributes to the dialog on value co-creation in the context of service-dominant (S-D) logic, extends our understanding of the link between the concepts of co-production and co-creation, and provides a novel perspective on firm–consumer interactions by drawing a parallel to interfirm relationships. From a managerial perspective, our framework suggests relationship management strategies to foster cooperative relations with consumers and guard against opportunistic consumer behavior.

Multi-channel customer management: Delighting consumers, driving efficiency

In today's maturing consumer markets, emphasis is shifting from straightforward sales to a more holistic approach to customer life cycle management, with a stronger emphasis on how sales are generated and service provided all along the customer journey. Effectively managing these different marketing, sales and service channels poses a significant challenge. Companies need new strategies, structures, processes and tools to deliver customer value across all channels. A multi-channel, integrative customer model that delivers customer value and significant return on investment (ROI) requires both a strong understanding of customer preferences and behaviours and a robust IT architecture that supports the overarching customer relationship management (CRM) strategy. Even those organizations that have embraced the need for sophisticated multi-channel orchestration often still fall short in their execution. We offer strategic guidelines in four areas to ensure success with multi-channel orchestration. First, marketing operations need to explicitly define a channel strategy with respect to customer segmentation, the channel journey (how and where sales and services are delivered) and targeted incentives that reward multi-channel sales and service support. Secondly, marketers need to optimize the online channel, which is fast becoming the primary platform for accessing product and service information, and completing an ever-growing number of transactions. It is also the entry hub to other touch points; customers go online to contact the company or to find store locations or telephone numbers. Thirdly, companies need to build an IT foundation that underpins their CRM strategy. This CRM IT architecture needs to enable the transformation from vertical, single-channel operations to true horizontal business processes that deliver cross-channel integration. Fourthly, marketers can learn by example. Companies across the consumer products spectrum are experimenting with the multi-channel experience. Marketers should broadly consider the best practices that they could adapt to their own industry.

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THE ANALYSIS OF CRM STRATEGY ON COMPANY IMAGE

This study aimed at explaining both the direct and indirect influences of Customer RelationshipManagement strategy on company image through customer satisfaction. This researchwas conducted in service user customers of PT BGR Semarang. It used observation, questionnaireand documentation methods, while the data was analyzed using descriptive analysisand multiple linear regressions. From the research result, it was found that sig calculation0.013<0.05 in which H1 was confirmed and 0.21<0.05 in which H2 was confirmed; it meansthat there were positive influences of CRM on customer satisfaction and that there were positiveinfluence of CRM strategy on company image through customer satisfaction. The saidresearch result could be explained that the well-implemented CRM strategy would likely tocreate customer satisfaction. The suggestions the researcher could offer were. For the companyto improve CRM strategy approaches such as: (1) improving the use of marketing mix,particularly service product, (2) improving communication with customers periodically or onmonthly basis, (3) improving the service particularly that from employees and continuouslydeveloping the image by considering the aspects of: company’s social responsibility towardits environment and warehouse, innovating, in this case, by improving support equipmentsand devices, improving management quality, particularly HR.Keywords: Customer Relationship Management, Company Image, Customer Satisfaction

Examining Golfer Characteristics: A Framework for Understanding Visitors to a Destination

The purpose of this study is to determine whether there are differences among visitors to a destination based on their golfing frequency in the previous year. In this study, profiles of golfers to a destination, based on their golfing frequency, are created. By constructing a framework for understanding the golf traveler, golf and tourism industry representatives can better understand the contribution that golfers make to a destination based on factors such as satisfaction, value, trip length, expenditures, travel decisions, and motivations. Findings from this research may provide golf and tourism marketers information that will lead to market segmentation models, target market development, and relationship management strategies.

Embedding relationship cues in written communication

PurposeBuilding and maintaining strong customer relationships has been suggested as a means for gaining a competitive advantage. Despite this, few studies have examined the link between written communication and relationship perceptions. Yet understanding the establishment of this link is a necessary precursor for the development of concrete relationship management strategies. This paper aims to test the effectiveness of well‐known and cited written communication elements in enhancing relationship perceptions. The paper specifically seeks to identify which elements of written communication are relationally conducive by examining the impact of these elements on customers' perceptions of the relationship they have with their service provider.Design/methodology/approachThe paper reports the results of an empirical survey of 422 distance education customers in which customers were asked to assess relationally conducive written communication elements and the importance of these elements on relationship development.FindingsIt was found that four components of written communication – message clarity, aesthetics, accuracy and physical features – were perceived by customers as relational cues that influence their relationship with the service organisation.Originality/valueThese findings are of value to service managers developing written communication that is conducive to relationship development. The contribution of the paper is that it empirically establishes a link between written communication and service relationships; an untested link that has been presumed in the literature. This basic empirical foundation is a necessary first step in the development of this research area.

Content analysis of corporate blogs as a relationship management tool

PurposeThe purpose of this paper is to examine how major corporations in the USA utilize corporate blogs for building and maintaining relationships with various publics.Design/methodology/approachApplying the relationship management framework, a longitudinal content analysis of corporate blogs is conducted in 2006 and 2008. The blogs are identified by a thorough search of blogs operated by corporations listed on Fortune 500 companies or Interbrand Top 100 global brands. A systematic coding scheme is developed based on the existing research on relationship maintenance strategies and corporate communication.FindingsA growing number of major corporations in the USA have adopted blogs as a corporate communication tool and the popularity of topic‐oriented blogs appears to have increased over time. While corporate blogs tend to apply various relationship maintenance strategies, the application of such strategies tends to be concentrated on a certain type of strategies.Practical implicationsDespite the increasing adoption of the corporate blogging practice, many corporations still do not seem to harness the unique potential of a blog to the fullest extent. To maximize the relationship management efforts, practitioners should consider expanding the scope and level of relationship management strategies. For researchers, this paper proposes a new approach for examining corporate blogs as a public relations tool by applying the relationship maintenance strategy framework.Originality/valueThis paper is the first attempt to provide a longitudinal overview of the state of corporate blogs and strategies. In addition to offering descriptive information about the corporate blogging practice, this paper proposes a new research framework for studying corporate blogs.

CUSTOMER RETENTION CRM APPLICATION

Customer retention is an important customer relationship management (CRM) strategy. To be effective, retention programs must embrace a customer-centric management approach to identify customer needs, segment profitable customers and facilitate satisfaction and loyalty. In cyclical business environments, firms often make adjustments to address changing markets and economic environments. Firms will adapt and modify previous practices to meet contemporary needs. This trend has occurred with customer relationships as many firms use relationship strategies to build stronger consumer-business bonds. CRM-retention also has significant advantages for consumers by providing information which helps them become more informed. Yet, CRM-retention programs are frequently misunderstood, and firms often rely on IT solutions that often fail. CRM-retention programs must include a customer-centric management approach which identifies and segments profitable customers, while fostering satisfaction and loyalty. This is mutually beneficial for the business and customers, and it facilitates the efficient use of labor and technical resources to meet even more consumer needs.

How does sales force automation influence relationship quality and performance? The mediating roles of learning and selling behaviors

Sales force automation (SFA) technologies are increasingly used to support customer relationship management strategies. However, previous studies have reported mixed results about the performances of SFA technologies. Therefore, this study seeks to further examine the impact of SFA usage on both customer relationship quality and sales performance. Additionally, the mediating roles of learning and adaptive selling behaviors on the outcomes of SFA usage are investigated. The results highlight the mediating role of salesperson learning and adaptive selling behaviors in the SFA usage and sales performance relationship. Especially noteworthy is the impact of learning through adaptive selling on those outcome variables. Implications for SFA research and practice that may further improve our understanding of this increasingly relevant topic are also offered.

Retail service dynamics in a rural tourism community

PurposeThe purpose of this paper is to focus on the use of retail customer service as a value added component and potential success strategy for rural tourism retailers. More specifically, service quality expectations and perceptions as a means for segmenting tourism markets are to be examined.Design/methodology/approachData were collected using a case study methodology in an established rural tourism community. Local customers, tourist customers, and retailers participated in the study. A canvassing approach was employed for administering a hand‐delivered, self‐report survey that examined parallel sets of service quality expectations and perceptions among the three groups, along with service satisfaction outcomes (i.e. retailer loyalty and purchase intentions). Descriptive analysis, factor analysis, t‐tests, and regression analysis were conducted.FindingsLocal and tourist customers' prior expectations for retail service quality were similar; however, local and tourist customers' post‐experience service quality perceptions differed significantly. A modified version of the SERVQUAL scale represented two service quality perception constructs important to local customers and retailers and one service quality perception construct for tourist customers.Research limitations/implicationsGeneralizability of findings may be limited as the in‐depth study was conducted within a single rural tourism community in Iowa.Practical implicationsThe study sheds light on service quality perception dimensions that are salient to local customers, tourist customers, and retailers. Results aid in the development of customer relationship management strategies for both local and tourist customers and enhanced competitive options for rural tourism retailers.Originality/valueFindings provide baseline information regarding customer relationship management strategies aimed at establishing rural tourism retailer sustainability by simultaneously meeting service expectations and enhancing service perceptions for local and tourist customers.

Moving from customer lifetime value to customer equity

We study the consequence of moving from Customer Lifetime Value maximization to Customer Equity maximization. Customer equity has traditionally been seen as the discounted sum of the lifetime earnings from all current and future customers and thus it has been largely assumed that maximizing customer lifetime value would lead to maximum customer equity. We show that the transition from CLV to CE is not that straightforward. Although the CLV model is appropriate for managing a single non-replaceable customer, the application of a CLV model to the acquisition and valuation of customers as an ongoing concern for the firm leads to sub-optimal customer relationship management and acquisition strategies. This leads the firm following a CLV maximization approach to have a smaller and less profitable customer base than one that follows a CE maximization strategy.

Reversing the Logic: The Path to Profitability through Relationship Marketing

Many firms have experienced greater success through implementing relationship marketing strategies. This is achieved by gaining knowledge about their own customers through database marketing and about the general marketplace through marketing research. Over time, this has led firms to adopt a general framework which we call the conventional path to profitability. This conventional framework suggests that new product innovation leads to acquisition, acquisition combined with a rich experience leads to satisfaction, satisfaction leads to loyalty and customer retention, and loyalty/retention leads to profitability. However, we show that some of the links in the framework are weak based on both academic research and marketplace realities. Consequently, we reverse the logic of the conventional path to profitability. We introduce a new approach that starts the customer relationship management strategy with customer profitability and the notion that different customers should be rewarded and satisfied differently. In addition, we outline a strategy that relationship marketing firms can implement, leading to higher levels of customer profitability and offer directions for future research.

Importance‐performance analysis of service attributes and its impact on decision making in the mobile telecommunication industry

PurposeCustomer relationship management (CRM) strategies rely heavily on the importance and performance of the attributes that define a service. The aim of this paper is first to investigate the asymmetric relationship between performance of service attributes and customer satisfaction, and second, through a case study in the mobile telecommunication industry to prove that the importance of a service attribute is a function of the performance of that attribute.Design/methodology/approachAn empirical study using questionnaires with a focus on service enquiring about the performance of service key attributes and overall customer satisfaction was conducted. The data were fed into the Kano customer satisfaction model and the importance‐performance analysis (IPA) method for analysis and comparison.FindingsThe results indicate that there is a dynamic relationship between service attributes and overall customer satisfaction. Service attributes have a different impact on customer satisfaction regardless of their classification. The importance of service attributes can be derived from their performance and this can be proved in the Mobile Telecommunication sector. Also this research concludes that the major weaknesses in the Mobile Telecommunication industry that cause the highest customer dissatisfaction are the range of phones, the accuracy of billing and payment, and the service plans, whereas the major strengths as a source of customer satisfaction are customer service quality, value for money and network performance.Research limitations/implicationsThe Kano model of customer satisfaction needs to be extended to other customer behaviour variables such as customer retention (e.g. purchase intention) and customer loyalty (e.g. word‐of‐mouth, feedback) for improved decision analysis. The paper does not include customer retention and loyalty factors.Practical implicationsThe methodology employed here can be easily applied by marketers for evaluating customer behaviours and service quality performance for improved decision making and resource allocation.Originality/valueThere is little evidence that extensive work has been dedicated to studying the relationship between service attributes and customer satisfaction through Kano's model. The paper specifically investigates the applicability of the model and the key factors in the mobile telecommunication industry.

Management education's blind spot: management of workplace relations

PurposeDeveloping interpersonal relationships is widely recognised as a key managerial capability, but business schools have been criticised for the limited attention given to the subject. The purpose of this paper is to attempt to address this deficiency in the area of teaching workplace relationships.Design/methodology/approachThe paper reviews and critiques existing literature on the teaching of interpersonal relationships. It examines possibilities for content and methods by which they could be taught, including the limitations of each method.FindingsThe limitations of skills‐based courses are recognised and a case is argued for a broad‐based approach to teaching interpersonal relations that draws on a motivational, behavioural, cognitive, emotion and personality approach. A large number of options exist and it is argued that techniques be used that complement one another.Practical implicationsLectures of general management courses are frequently constrained by their limited training but the paper provides a cognitive and theoretical framework with which to analyse relationships, which can be combined with a number of other techniques within the abilities of the general management lecturer. More research is required on interpersonal relationship management strategies and relationship variability in the workplace.Originality/valueThe paper moves away from a skills‐based approach to interpersonal relationships to consider cognitive and motivational aspects. The concept of relational capital emphasises the inherent value of workplace relationships. The paper suggests that interpersonal relationship needs to be mainstreamed into management education if graduates are to be prepared for the business world.

Customer relationship management strategic application and organizational effectiveness: an empirical investigation

This study was undertaken to study the impact of customer relationship management (CRM) as a strategic approach on overall organizational effectiveness and to identify barriers that affect CRM success. A survey of customer relationship management practices was developed and distributed to 500 randomly selected financial service providers in the United States. Follow‐up interviews were also conducted with key managers among several financial service providers. The results show that organizations generally considered themselves successful at managing their customer relationship management programs. However, while they have achieved significant improvement in customer responsiveness and performance, they have not reached the order of magnitude of improvements ascribed to customer relationship management. This exploratory empirical investigation provides insight into the effectiveness of implementing a customer relationship management strategy approach for increasing the probability of success of the CRM approach and identifies areas that need further investigation.

Competing Loyalty Programs: Impact of Market Saturation, Market Share, and Category Expandability

Loyalty programs have become an important component of firms’ relationship management strategies. There are now some industries in which numerous rival loyalty programs are offered, inducing intense competition among these programs. However, existing research on loyalty programs has often studied such programs in a non-competitive setting and has often focused on a single program in isolation. Addressing this gap, this research examines the effect of a firm's competitive positioning and market saturation on the performance of the firm's loyalty program. Based on the analysis of firm- and individual-level data from the airline industry, the results indicate that larger firms tend to benefit more from their loyalty program offerings than smaller firms. Moreover, when the product category demand is rigid, the impact of an individual loyalty program decreases as the marketplace becomes more saturated with competing programs. However, when the product category is highly expandable, the saturation effect disappears. Under such situations, loyalty programs can help an industry gain competitive advantage over substitute offerings outside the industry, and multiple programs can effectively coexist even under a high level of market saturation.

Competing Loyalty Programs: Impact of Market Saturation, Market Share, and Category Expandability

Loyalty programs have become an important component of firms’ relationship management strategies. There are now some industries in which numerous rival loyalty programs are offered, inducing intense competition among these programs. However, existing research on loyalty programs has often studied such programs in a non-competitive setting and has often focused on a single program in isolation. Addressing this gap, this research examines the effect of a firm's competitive positioning and market saturation on the performance of the firm's loyalty program. Based on the analysis of firm- and individual-level data from the airline industry, the results indicate that larger firms tend to benefit more from their loyalty program offerings than smaller firms. Moreover, when the product category demand is rigid, the impact of an individual loyalty program decreases as the marketplace becomes more saturated with competing programs. However, when the product category is highly expandable, the saturation effect disappears. Under such situations, loyalty programs can help an industry gain competitive advantage over substitute offerings outside the industry, and multiple programs can effectively coexist even under a high level of market saturation.

The socio-demographic profile of Generation Y online shoppers in Taiwan

Generation Y has tremendous buying power and represents the future market for electronic commerce (e-commerce). There are only a few studies on Generation Y's profile. This research aims to create a profile of Generation Y online shoppers in Taiwan and examine their socio-demographic characteristics, as compare to internet users, but non-shoppers. Data from 1,187 respondents are collected and analysed. Results of the study provide guidance to e-commerce marketers to formulate their effective electronic customer relationship management strategies that encourage Generation Y internet users to make online purchases. This study provides contribution to practice for those companies currently targeting Generation Y consumers via their e-commerce websites or those considering the possibility of targeting this population.