Customer Relationship Management Eleni K Kevork ELTRUN Research

Customer Relationship Management Eleni K. Kevork ELTRUN Research Group Athens, November 2007 Athens University of Economics and Business 1 E-business Forum, 15/11/2007

Introduction Genesis of CRM • Increasingly competitive environment in global market • Rapid advances in the customer intelligence • Retail companies look for new business and marketing models • Idea of a more customer oriented strategy is developed • Shift revolution is held in Marketing philosophy • CRM concept is developed. 2` E-business Forum, 15/11/2007

Introduction Why CRM/e-CRM is important? Ø Understand better customer behaviour as he/she is the central focus (Feinberg et al, 2002) Ø A business and marketing strategy that integrates technology, process and all business activities around the customer (Feinberg et al, 2002) 3` E-business Forum, 15/11/2007

Literature Review CRM v Establishing, maintaining, enhancing, commercializing customer relationships through promise fulfillment (Gronroos 1990) v CRM is used to define the process of creating and maintaining relationships with business customers or consumers. Alternatively, CRM is a process of identifying, differentiating, retaining and growing customers through customization (Strauss et al. 2006) 4` E-business Forum, 15/11/2007

Literature Review Perspectives of CRM: depend on – Research field of researchers – Industry in which researchers belong to 5` E-business Forum, 15/11/2007

Literature Review Perspectives of CRM according to research field • Management • Marketing • Electronic Business • Knowledge Management • Information Systems • Technology • Human Resource Management 6` E-business Forum, 15/11/2007

Literature Review • Management – CRM is more a business strategy than technology – Aims: manage customer life cycle, increase loyalty, profitability, retention • Information Systems – Emphasis on technological aspects of CRM Technology – Combination of software, hardware, processes and applications aligned with customer strategies • E-Business – CRM: an application of e-business digital activities – Customers collect data at every “touch point” 7` E-business Forum, 15/11/2007

Literature Review • Marketing – CRM is the 5 th “P” of marketing mix – Emphasis on long term relationships and one to one interactions through communication channels Ø Service Marketing – Strong connection between CRM and service – Service is offered to customers through SFA – Data collected important for promotional strategies – Definition of CRM: Application of CRM concept utilizing Information and Communication Technologies (ICT) in both traditional and electronic environment 8` E-business Forum, 15/11/2007

Literature Review • Human Resource Management – Adoption of a customer-oriented culture by both top management and employees within an organization • Technology – CRM a software provided by many vendors – Modules of CRM: (Sales Force Automation), (Marketing automation), (Customer Service and Support). • Knowledge Management – CRM means learning customer better 9` E-business Forum, 15/11/2007

Literature Review Perspectives of CRM according to industry • Hotels • Mobile phone service • Museums • Fashion retailers • Banking 10` E-business Forum, 15/11/2007

Literature Review • Hotels – Customers collect information/make reservations through internet. – Hoteliers are not familiar with CRM concept. – They prefer to use experts with specialized knowledge concerning CRM technological implementation and in particular Web site designing. – Few hoteliers use loyalty programmes. – Early stages of using CRM • Museums – Museum services are promoted through Internet – Museum managers are uncertain of which is the best way of using the Internet – Web site: informative role, discussion groups. – Early stages of using CRM. – Museums managers seek to find new ways of retain long term relationships with their customers. 11` E-business Forum, 15/11/2007

Literature Review • Mobile phone service – Only some steps in innovation are made – Memberships and loyalty schemes (characteristics of CRM) are only used – Early stages of using CRM • Banking – Understanding of the principles of “relationship” between bank and customers (reduce cost, offer better customer service and positive impact to the management of consumer behaviour) – CRM used services: customer life time value, retention rate, call centers, profitability analysis • Fashion retailers – Web sites: informative and communication role – No provision of value added activities – Interactivity with a very low level 12` E-business Forum, 15/11/2007

Literature Review • Definition: The application of the CRM concept utilizing Information and Communication Technologies (ICT) in both “traditional” and “electronic” business environments • Core concept: CRM involves marketing activities given to customers through channels in a digital way sharing the same concepts such as: customer centric relationship, long-term lasting relations, customer management 13` E-business Forum, 15/11/2007

Literature Review Available empirical studies on CRM/ e-CRM v International Journal of Service Industry Management (Feinberg and Kadam, 2002) v Research Context: Retail industry v Purpose of the paper: uncover relationships between CRM and customer satisfaction by determining the presence of e-CRM features on web sites v Hypotheses: v E-CRM factors are related to customer satisfaction v E-CRM factors are related to sales and profit through satisfaction v Method: survey v Research findings: Confirm hypotheses v Managerial implications: Allow companies to focus on developing their web sites to succeed customer satisfaction 14` E-business Forum, 15/11/2007

Journals • International Journal of Electronic Customer Relationship Management • International Journal of Interactive Marketing • Journal of Business Process Management • Managing Service quality • Marketing Intelligence and Planning 15` E-business Forum, 15/11/2007

REFERENCES • • • A. Hamdouch and E. Sammuelides (2001). Innovation’s dynamics in mobile phone services in France. European Journal of Innovation Management, Vol. 4, No 3, pp. 153 – 162. A. Massey, Montoya – Weiss, M. M. and K. Holcom (2001). Reengineering the customer relationship: leveraging knowledge assets at IBM, Decision Support Systems, 23, pp. 115 – 170. A. Parvatiyar and J. N. Sheth (2001). Customer relationship management: emerging practice, process, and discipline. Journal of Economic and Social Research, Vol. 3, No 2, pp. 1 – 34. C. Stefanou, C. Sarmaniotis and A. Stafyla (2003). CRM and customer-centric knowledge management: an empirical research. Journal of Business Process Management, Vol 9, No 5, pp. 617 – 634. D. Adebanjo (2003). Classifying and selecting e-CRM applications: an analysis-based proposal. Management Decision, Vol 41, No 6, pp. 570 – 577. 16` E-business Forum, 15/11/2007

REFERENCES • • • D. Bradshaw and C. Brash (2001). Managing customer relationships in the e-business world: how to personalise computer relationships for increased profitability. Industrial Management & Data Systems, 29(12), pp. 520 – 530. D. Luck and G. Lancaster (2003). E-CRM: customer relationship marketing in the hotel industry. Managerial Auditing Journal, Vol. 18, No 3, pp. 213 – 231. D. Peppers, M. Rogers and B. Dorf (1999). Is your company ready for one–to–one marketing? Harvard Business Review, Vol. 77, No 1, pp. 151 – 160. E. Gummesson (2004). Return on relationships (ROR): the value of relationship marketing and CRM in business to business contexts. Journal of Business & Industrial Marketing, Vol. 19, No 2, pp. 136 – 148. E. W. T. Ngai (2005). Customer Relationship management research (1992 – 2002), an academic literature review and classification. Marketing Intelligence and Planning, 23(6), pp. 582 – 605. 17` E-business Forum, 15/11/2007

REFERENCES • • • F. Rajola (2003). Customer Relationship Management: Organizational and Technological, Perspectives, Springer, New York, NY. J. Kim, E. Suh and H. Hwang (2003). Evaluating the effectiveness of CRM. Journal of Interactive Marketing, Vol 17, No 2, pp. 5 – 19. J. Strauss, A. E. Ansary and R. Frost (2003). E - marketing. Prentice. Hall, 3 rd Edition, International Edition. I. J. Chen and K. Popovich (2003). Understanding customer relationship management (CRM): People, process and technology. Business Process Management Journal, Vol 9, No 5, pp. 672 – 688. L. A. Crosby (2002). Exploring some myths about customer relationship management. Managing Service quality, Vol. 12, No 5, pp. 271 – 277. M. Law, T. Lau and Y. H. Wong (2003). From customer relationship management to customer-managed relationship: unravelling the paradox with a co-creative perspective. Marketing Intelligence and Planning, Vol 2, No 1, pp. 51 – 60. 18` E-business Forum, 15/11/2007

REFERENCES • • M. Xu and J. Walton (2005). Gaining customer knowledge through analytical CRM. Industrial Management & Data, Vol. 106, No 7, pp. 955 – 971. P. Greenberg (2001). CRM at the speed of light: Capturing and Keeping Customers in Internet Real Time. Mc. Graw-Hill, Berkeley. P. G. W. Keen (1999). Competing. Internet Business. Eburon Publishers, Delft, Netherlands, Chapter 2. P. Kotler (2000). Marketing Management. Prentice-Hall, Upper Saddle River, NJ. R. P. Kotorov (2002). Ubiquitous organization: an organizational design for e-CRM. Business Process Management Journal, Vol. 8, No 3, pp. 218 – 232. S. A. Brown (2000). A case study on CRM and mass customization. S. A. Brown (Ed. ) Customer Relationship Management: A Strategic Imperative in the World of e-Business, Canada, Wiley, pp. 41– 53. T. C. Kinnear and J. R. Taylor (1996). Marketing research – an applied approach. Fifth Edition, 1996. Mc. Graw- Hill, Inc. 19` E-business Forum, 15/11/2007

For more information please contact ekevork@aueb. gr Thank you! 20` E-business Forum, 15/11/2007