BPM for supporting customer relationship and profit decision

2016 ◽  
Vol 22 (1) ◽  
pp. 231-255 ◽  
Author(s):  
Henry Lau ◽  
Dilupa Nakandala ◽  
Premaratne Samaranayake ◽  
Paul K. Shum
Keyword(s):  
Relationship Marketing ◽  
Customer Service ◽  
Process Management ◽  
Market Competition ◽  
Global Market ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Content Type ◽  
Service Levels ◽  
Marketing Models

Purpose – As a response to increasing global market competition, companies in various industries tend to identify and manage customer relationship to increase profit performance. Companies commit more resources to identify their VIP customers and retain them by all means. The purpose of this paper is to develop a customer relationship management (CRM) business process management (BPM) model to identify airline customers with different degree of relationship and profit potential, and select the highly profitable customers for developing retention strategy and processes, and convert the less profitable into profitable corporate accounts. Design/methodology/approach – This study innovatively apply the well-known techniques including CRM and relationship marketing models, fuzzy analytic hierarchy process (FAHP), and technique for order preference by similarity to ideal solution (TOPSIS) in the BPM research. This novel approach analyzes longer term customer profit and value potential, and prioritizes corporate accounts as the basis for setting appropriate customer service levels and improving the CRM process. This hybrid model is able to capitalize on the benefits of these methods and offset their deficiencies. Most importantly, it can be customized to various industries without complex modification. Findings – This study uses data of an airline company to validate feasibility of the proposed CRM BPM model. The results indicate that this model is able to classify the customers based on various criteria and sub-criteria, thus allowing companies to introduce appropriate service levels to deal with different categories of customers, and improve CRM process so as to maximize customer profit and value potential. Practical implications – This CRM BPM model and analysis provide managers extensive customer knowledge, more analytical and fact-based decision-making support, and a stronger focus on return on investment in sales and marketing. Knowing the profit and value potential generated by individual corporate customer makes it easier to establish the link between the CRM and the profit outcome. This model also benefits the organization and its stakeholders by allocating more resources to the targeted customer relationships that are profitable or valuable, and makes marketing more accountable in its marketing programs. Originality/value – This study makes the first move to innovatively apply the well-known techniques including CRM and relationship marketing models, FAHP, and TOPSIS in the BPM research.

Relationship marketing: looking backwards towards the future

2017 ◽  
Vol 31 (1) ◽  
pp. 11-15 ◽  
Author(s):  
Adrian Payne ◽  
Pennie Frow
Keyword(s):  
Relationship Marketing ◽  
Research Priorities ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Dark Side ◽  
Future Research ◽  
Policy Makers ◽  
Content Type ◽  
A Value ◽  
The Future

Purpose This paper aims to review the growth and development of the field of relationship marketing and, through a consideration of this body of work, identifies key research priorities for the future of relationship marketing. The paper also delineates the frequently confused associated concepts of customer relationship management and customer management and considers how they fit within the broader concept of relationship marketing. Design/methodology/approach This paper undertakes a review of the relationship marketing literature, supplemented by the authors’ on-going interactive research with managers. Findings The paper reviews alternative approaches to relationship marketing, reflects on the development of the field of relationship marketing and identifies three critical priorities for future research in relationship marketing. Practical implications The research priorities that are identified in this paper represent important priorities for scholars, managers, regulators and policy makers. Originality/value Although there is now a substantial body of research on relationship, marketing, much of this work focuses on the customer-firm dyad, with a smaller body of work focusing on a broader range of stakeholders. This paper argues for the broadening of the role of relationship marketing to consider ecosystems; the need for firms to shift from a value-in-exchange to a value-in-use perspective when addressing customer relationships; and the critical need to address “dark side” behaviour and dysfunctional processes in relationship marketing.

Revitalizing relationship marketing

2017 ◽  
Vol 31 (1) ◽  
pp. 6-10 ◽  
Author(s):  
Jagdish Sheth
Keyword(s):  
Relationship Marketing ◽  
Two Dimensions ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Content Type ◽  
Share Of Wallet ◽  
Brand Communities ◽  
Use Of Social Media ◽  
Personal Reflections ◽  
Share Value

Purpose The aim of this paper is to review the forces that led to the rise of relationship marketing (RM) and to provide suggestions for how it can overcome its midlife crisis and be revitalized. Design/methodology/approach Personal reflections. Findings A shift in two dimensions is needed to revitalize RM: from “share of wallet” to “share of heart” as the RM objective and from “managing customer relationships” to “managing contractual or virtual joint ventures with customers” as the process of RM. Research limitations/implications The shift to “share of heart” will generate three new RM areas for researchers and practitioners: emotive feedback, purpose-driven RM and the use of social media for developing and nurturing brand communities. For the process shift to take place, companies and customers need to co-create value, collaborate cross functionally and share value. Originality/value Going from “share of wallet” to “share of heart” as the objective of RM and from managing customer relationship to joint venturing with customers as a process will revitalize the RM discipline.

Salesperson profitability in relationship marketing

2014 ◽  
Vol 9 (3) ◽  
pp. 306-323 ◽  
Author(s):  
Said Echchakoui
Keyword(s):  
Relationship Marketing ◽  
Transaction Cost Economics ◽  
Retention Rate ◽  
Sales Force ◽  
Customer Relationship ◽  
Critical Duration ◽  
Sales Managers ◽  
Content Type ◽  
Dynamic Exchange ◽  
The Relationship

Purpose – This paper aims to answer a prominent question that arises for the manager who wishes to recruit a salesperson to maintain and develop a portfolio–customer relationship: Under which condition is this decision profitable for the firm? Though several authors have underscored the importance of the salesperson's role in the creation of purchaser–salesperson relationships, in the author's knowledge, no study has focused on the salesperson's profitability in the relationship approach. This issue is significant for sales managers because the investment in sales force is greater, and the relationship profitability with customers is not guaranteed. Design/methodology/approach – Econometric model based on transaction cost economics theory and dynamic exchange between firm, salesperson and a customer. Specifically, this model links between customer life value, firm financial value, salesperson cost and relationship time. Findings – Three zones are identified that can characterize the dynamic salesperson profitability. It was shown that only one zone can be profitable to the firm. Research limitations/implications – This result is important because it can solve the equivocal posit between scholars with regard to the success or the failure of relationship marketing. This study also specifies the critical retention rate, the critical duration time in which a salesperson begins to be profitable. Originality/value – In the author's knowledge, this study is the first to use an exchange model to show in which conditions the salesperson will be profitable in relationship marketing.

Searching for new saving behavior theories

2014 ◽  
Vol 32 (4) ◽  
pp. 279-299 ◽  
Author(s):  
Kent Eriksson ◽  
Cecilia Hermansson
Keyword(s):  
Social Exchange ◽  
Financial Services ◽  
Model Development ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Theoretical Research ◽  
Marketing Theory ◽  
Savings Behavior ◽  
Content Type ◽  
Saving Behavior

Purpose – The purpose of this paper is to develop a model of bank advisor/customer relationships and customer saving behavior. Design/methodology/approach – The research is a theoretical review and model development of savings behavior and bank advisor/customer relationships. The review is used for the development of a model of bank advisor/customer relationships, and their effect on savings behavior. Findings – Findings are a model that distinguishes three kinds of exchange (relational, interimistic, and transaction) in between bank advisor and customer. The three kinds of exchange then influence customer savings behavior. Research limitations/implications – The implications of this research is that it points to that relationship marketing theory can be used in the analysis of how bank advisors influence customer savings behavior. Practical implications – For regulators and financial services firms, these findings point to how the role of bank advisors for consumer savings behavior can be analyzed. This is important, as much policy work presumes that advisors influence customer savings behavior, but the knowledge base for that presumption needs to be better understood. Social implications – The paper contributes toward a better understanding of the social exchange between bank employees and customers as regards savings products. Originality/value – This paper is original because it includes many theoretical research fields, and because it connects the bank advisor and customer relationship with the customer's savings behavior.

Modern 3PL Services in China: The Role of Trust

2009 ◽  
Vol 10 (2) ◽  
pp. 103-135
Author(s):  
Paul Ghijsen ◽  
Janjaap Semeijn ◽  
Amy Wang
Keyword(s):  
Customer Service ◽  
Positive Influence ◽  
Customer Relationships ◽  
Service Performance ◽  
Customer Relationship ◽  
Social Connections ◽  
Mediating Role ◽  
Business Operations ◽  
Relationship Outcomes

The purpose of this research is to provide an understanding of the contemporary 3PL market in China. This study links trust, IT and 3 PL usage and customer relationships. Also, the importance of social connections in business operations is highlighted. The manuscript shows the influence of trust, IT and 3PL usage on customer service performance, and its consequence for satisfaction and loyalty. 3PL usage appears to have a positive influence on service performance. Furthermore, service performance improves the customer relationship outcomes, in terms of satisfaction and loyalty via trust. Trust seems to have a mediating role.

Customer Relationship Management and Knowledge Discovery in Database

2010 ◽  
pp. 902-907
Author(s):  
Jounghae Bang ◽  
Nikhilesh Dholakiam ◽  
Lutz Hamel ◽  
Seung-Kyoon Shin
Keyword(s):  
Knowledge Discovery ◽  
Relationship Marketing ◽  
Customer Relationship Management ◽  
Relationship Management ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Knowledge Discovery In Databases ◽  
Data Warehouses ◽  
Customer Data ◽  
Purchase Patterns

Customer relationships are increasingly central to business success (Kotler, 1997; Reichheld & Sasser, 1990). Acquiring new customers is five to seven times costlier than retaining existing customers (Kotler, 1997). Simply by reducing customer defections by 5%, a company can improve profits by 25% to 85% (Reichheld & Sasser, 1990). Relationship marketing—getting to know customers intimately by understanding their preferences—has emerged as a key business strategy for customer retention (Dyche, 2002). Internet and related technologies offer amazing possibilities for creating and sustaining ideal customer relationships (Goodhue, Wixom, & Watson, 2002; Ives, 1990; Moorman, Zaltman, & Deshpande, 1992). Internet is not only an important and convenient new channel for promotion, transactions, and business process coordination; it is also a source of customer data (Shaw, Subramaniam, Tan, & Welge, 2001). Huge customer data warehouses are being created using advanced database technologies (Fayyad, Piatetsky- Shapiro, & Smyth, 1996). Customer data warehouses by themselves offer no competitive advantages: insightful customer knowledge must be extracted from such data (Kim, Kim, & Lee, 2002). Valuable marketing insights about customer characteristics and their purchase patterns, however, are often hidden and untapped (Shaw et al., 2001). Data mining and knowledge discovery in databases (KDD) facilitate extraction of valuable knowledge from rapidly growing volumes of data (Mackinnon, 1999; Fayyad et al., 1996). This article provides a brief review of customer relationship issues. The article focuses on: (1) customer relationship management (CRM) technologies, (2) KDD techniques, and (3) Key CRM-KDD linkages in terms of relationship marketing. The article concludes with the observations about the state-of-the-art and future directions.

Lean readiness assessment model – a tool for Humanitarian Organizations' social and economic sustainability

2020 ◽  
Vol 10 (2) ◽  
pp. 77-99 ◽  
Author(s):  
Muhammad Shafiq ◽  
Kullapa Soratana
Keyword(s):  
Organizational Culture ◽  
Success Factors ◽  
Process Management ◽  
Partial Least Square ◽  
Least Square ◽  
Assessment Model ◽  
Customer Relationship ◽  
Readiness Assessment ◽  
Content Type ◽  
Humanitarian Organizations

Purposepurpose of this study is to present a Lean Readiness Assessment Model (LRAM) for assessing the readiness of Humanitarian Organizations (HO) for adopting Lean Management (LM) (Johanson et al.) practices. Literature reveals that implementation of LM itself is a cost and most organizations have failed to adopt LM techniques due to a non-readiness status and a non-supportive organizational culture. This situation indicates that the assessment of organizations' readiness before implementation of lean techniques is necessary.Design/methodology/approachThis was an empirical quantitative study. Based on a synthesis of the literature, a conceptual model was developed by identifying seven critical success factors (CSFs). The CSFs were validated by HO professionals via a questionnaire-based survey. The data from the responses were analysed by applying partial least square structured equation modelling (PLS-SEM) using the SmartPLS3 software.FindingsA proven LRAM was constructed that consists of CSFs (independent and mediating variables), which have reflected positive coefficients and significant t >1.96 and p < 0.05 values. The CSFs that are significant include process management, planning and control management, customer relationship management, human resource management, communication and coordination management and a positive organizational culture. The CSFs of supplier relationship and top management and leadership had insignificant t and p values and were dropped from the final LRAM.Originality/valueThis is a unique and rare study in its nature which developed LRAM for HO sector. The contribution of this model is to improve the efficiency and sustainability (economic and social aspects) of an HO under scarce resource conditions.

The emergence of the customer relationship portfolio of a new venture: a networking process

2019 ◽  
Vol 34 (5) ◽  
pp. 1066-1078 ◽  
Author(s):  
Antonella La Rocca ◽  
Andrea Perna ◽  
Andrea Sabatini ◽  
Enrico Baraldi
Keyword(s):  
Single Case ◽  
New Ventures ◽  
Cumulative Effect ◽  
Customer Relationships ◽  
Customer Relationship ◽  
New Venture ◽  
Supplier Relationships ◽  
Content Type ◽  
Early Relationships ◽  
Network Capability

Purpose While several studies have focused on the initial phases of new ventures and their first customer and supplier relationships, we have a limited understanding of how the new venture’s portfolio of customer relationships emerges. This paper aims to explore the emergence of the customer relationship portfolio of a new venture and to investigate the effects of early relationships on subsequent ones. Design/methodology/approach Methodologically, the authors rely on a longitudinal single case study of a new venture which develops, implements and sells customized cost-management software. The study is exploratory and based on 24 in-depth interviews. Findings The findings show that the development of a customer portfolio depends on the cumulative effect of heterogeneous elements and network connections. These include the initial link between the new venture and the first customer and a subsequent series of interconnections that develop with the emerging network capability of the new venture. Originality/value As one of the few studies that explore the emergence of new ventures’ customer relationship portfolio, this study demonstrates the value of applying a relational/network approach for studying relationship portfolio dynamics.

Customers' relational models as determinants of customer engagement value

2014 ◽  
Vol 23 (1) ◽  
pp. 55-61 ◽  
Author(s):  
Velitchka D. Kaltcheva ◽  
Anthony Patino ◽  
Michael V. Laric ◽  
Dennis A. Pitta ◽  
Nicholas Imparato
Keyword(s):  
Social Interactions ◽  
Customer Service ◽  
Customer Relationship ◽  
Customer Engagement ◽  
Service Firms ◽  
Relational Models ◽  
Content Type ◽  
Service Firm ◽  
The Social ◽  
Different Types

Purpose – The authors apply Alan P. Fiske's relational models framework to customers' engagement with service firms – specifically, they propose that customers who hold different relational models for the service firm are likely to engage with the firm in dissimilar ways, thus generating different types of customer engagement value for the firm. Fiske's relational models framework is eminently suitable for studying customer-service firm engagement because it is widely adopted in the social sciences as a rigorously developed framework for conceptualizing social interactions. Design/methodology/approach – The article bridges Fiske's relational models framework and Kumar et al.'s customer engagement value framework, and conceptually demonstrates that customers employing different relational models for the service firm are likely to generate different types of customer engagement value for the firm. Findings – The article demonstrates conceptually that customers' relational models, schemata, and scripts influence how consumers engage with the firm and the type of customer engagement value accruing to the firm. Research limitations/implications – This research has implications for service firms' relationship strategies. First, service marketers can determine the desired customer engagement value(s) and then craft their customer relationship strategy so that it maximizes those engagement value(s). The article suggests relationship strategies that service firms may implement for encouraging customers to adopt different relational models. Originality/value – No research has bridged relational models theories and customer engagement value theories.

Employee engagement insights from Jamaica's hospitality industry: compounding the benefits of a service orientation through customer service training

2019 ◽  
Vol 27 (4) ◽  
pp. 44-46
Keyword(s):  
Employee Engagement ◽  
Customer Service ◽  
Employee Perceptions ◽  
Service Orientation ◽  
Content Type ◽  
Service Levels ◽  
Positive Attitudes ◽  
Customer Service Training ◽  
Service Training ◽  
Pertinent Information

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This research paper concentrates on the employee perceptions of service orientation and customer service training, and how these impact upon employee engagement levels within all-inclusive hotel businesses in Jamaica. The results reveal that a strategy of pursuing service orientation and running customer service training rewards the employer with increased engagement and positive attitudes among staff, which translates to a commercially valuable boost in customer service levels. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Sign in / Sign up

Export Citation Format

Share Document