E-business Forum, 15/11/2007 1`1` 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 2`2` 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`2`

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

E-business Forum, 15/11/2007 4`4` CRM  Establishing, maintaining, enhancing, commercializing customer relationships through promise fulfillment (Gronroos 1990)  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) Literature Review

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

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

E-business Forum, 15/11/2007 7`7` 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” Literature Review

E-business Forum, 15/11/2007 8`8` Marketing –CRM is the 5th “P” of marketing mix –Emphasis on long term relationships and one to one interactions through communication channels  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 Literature Review

E-business Forum, 15/11/2007 9`9` 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 Literature Review 9`9`

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

E-business Forum, 15/11/ ` 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. Literature Review 11`

E-business Forum, 15/11/ ` 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 Literature Re view 12`

E-business Forum, 15/11/ ` 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 Literature Review 13`

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

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

E-business Forum, 15/11/ ` 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). Re- engineering 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 – `

E-business Forum, 15/11/ ` 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 – `

E-business Forum, 15/11/ ` 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, 3rd 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 – `

E-business Forum, 15/11/ ` 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. McGraw-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, McGraw- Hill, Inc. 19`

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