scholarly journals When Salespeople Manage Customer Relationships: Multidimensional Incentives and Private Information

2019 ◽  
Vol 56 (5) ◽  
pp. 749-766 ◽  
Author(s):  
Minkyung Kim ◽  
K. Sudhir ◽  
Kosuke Uetake ◽  
Rodrigo Canales
Keyword(s):  
Moral Hazard ◽  
Adverse Selection ◽  
Customer Relationship Management ◽  
Private Information ◽  
Information Acquisition ◽  
Relationship Management ◽  
Selection Effect ◽  
Sales Performance ◽  
Customer Relationships ◽  
Customer Relationship

At many firms, incentivized salespeople with private information about customers are responsible for customer relationship management. Although incentives motivate sales performance, private information can induce moral hazard by salespeople to gain compensation at the expense of the firm. The authors investigate the sales performance–moral hazard trade-off in response to multidimensional performance (acquisition and maintenance) incentives in the presence of private information. Using unique panel data on customer loan acquisition and repayments linked to salespeople from a microfinance bank, the authors detect evidence of salesperson private information. Acquisition incentives induce salesperson moral hazard, leading to adverse customer selection, but maintenance incentives moderate it as salespeople recognize the negative effects of acquiring low-quality customers on future payoffs. Critically, without the moderating effect of maintenance incentives, the adverse selection effect of acquisition incentives overwhelms the sales-enhancing effects, clarifying the importance of multidimensional incentives for customer relationship management. Reducing private information (through job transfers) hurts customer maintenance but has greater impact on productivity by moderating adverse selection at acquisition. This article also contributes to the recent literature on detecting and disentangling customer adverse selection and customer moral hazard (defaults) with a new identification strategy that exploits the time-varying effects of salesperson incentives.

scholarly journals The Implementation of Customer Relationship Management (CRM) Supported by SMS Gateway Technology

2019 ◽  
Vol 16 (1) ◽  
pp. 45
Author(s):  
Komang Redy Winatha
Keyword(s):  
Customer Relationship Management ◽  
Service Management ◽  
Environmental Changes ◽  
Relationship Management ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Web Based ◽  
Customer Data ◽  
Gateway Technology ◽  
Web Based System

Responding to the higher restaurant industry competition, the Mailaku Roemah Nongkrong restaurant was not too flexible in facing an environmental changes. It was still using manual technology while there was an advancing technological developments. It was still applying the internal resources for business development. One way to overcome this problem is by utilizing technology and the concept of customer relationship management (CRM). CRM is a marketing strategy to create and maintain customer relationships and reduce the possibility of customers moving to other competitors. This study presented the development and implementation of CRM in a web-based system that was supported by sms gateway technology. The research methodology that will be used in this study consists of some steps, such as library study, observation, interviews, and system development which was divided into analysis, design, coding, and testing. The result was a web-based system was able to manage customer data, product promotion, and customer service management to create good relationships with customers. This system can be as an alternative for restaurants and customers in establishing practical business communication.

From Local Information Systems to Global Customer Relationship Management

2014 ◽  
pp. 299-305 ◽  
Author(s):  
Ulas Akkucuk
Keyword(s):  
Eastern Europe ◽  
Customer Relationship Management ◽  
Information Technologies ◽  
Relationship Management ◽  
Local Information ◽  
Customer Relationships ◽  
Customer Relationship ◽  
The World ◽  
Flow Of Information ◽  
Opening Up

Advances in computer and information technologies have been utilized by companies all over the world since the 1990s. Corresponding roughly to the same period, global trade has increased dramatically. The opening up of large markets like China and the Eastern Europe contributed to this trend. National companies turned global and had to manage operations in a number of different countries. Companies strived to maintain better customer relationships through CRM programs aimed at managing the flow of information, interacting with the customers, and in the end, formulating individualized offerings for them. Globalization has led to the development of the new notion of Global Customer Relationship Management as opposed to having independent local CRM programs operating in the subsidiaries. This chapter presents the issues facing the implementation of such Global CRM programs and provides the important conceptual frameworks proposed in the literature.

eCRM Marketing Intelligence in a Manufacturing Environment

2010 ◽  
pp. 1244-1250
Author(s):  
Aberdeen Leila Borders ◽  
Wesley J. Johnston ◽  
Brett W. Young ◽  
Johnathan Yehuda Morpurgo
Keyword(s):  
Customer Relationship Management ◽  
Word Of Mouth ◽  
Relationship Management ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Face To Face ◽  
Service Information ◽  
Marketing Intelligence ◽  
Management Techniques ◽  
Voice Interaction

This article examines the issue of electronic customer relationship management (eCRM) in a manufacturing context. ECRM has been described as the fusion of a process, a strategy, and technology to blend sales, marketing, and service information to identify, attract, and build partnerships with customers (Bettis-Outland & Johnston, 2003; Jaworski & Jocz, 2002). Although some customers still pay a premium for face-to-face or voice-to-voice interaction in today’s hightech world, through external (e.g., advertising) and internal (e.g., word-of-mouth) influence, the diffusion of the use of eCRM to build and sustain customer loyalty as a firm’s strategy is on the rise. Manufacturers use the knowledge of their customers’ needs and preferences to manage profitable customer interactions. This increased use of eCRM as a new manifestation (technological consolidation) of firmly established customer relationship management techniques has been shown to improve customer relationships and enhance customization (Kennedy, 2006).

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.

E-CRM

2010 ◽  
pp. 436-444 ◽  
Author(s):  
María Rosa Llamas-Alonso ◽  
Ana Isabel Jiménez-Zarco
Keyword(s):  
Competitive Advantage ◽  
Market Share ◽  
Customer Relationship Management ◽  
Relationship Management ◽  
Customer Relationships ◽  
Customer Relationship ◽  
The Past ◽  
The Cost ◽  
Business Philosophy ◽  
Number Of Firms

As competition and the cost of acquiring new customers continue to increase, the need to build and enhance customer relationships has become paramount for businesses. The building of strong customer relationships has been suggested as a means for gaining competitive advantage (Mckenna, 1993) so, in today’s marketplace, a growing number of firms seek to develop profound, close and long-lasting relationships with their customers since it is much more profitable to keep and satisfy current customers than to manage an ever-changing customer portfolio (Reinartz & Kumar, 2003; Ross, 2005; Llamas-Alonso et al. 2009). This one is a consequence of many paradigmatical changes in the marketing field during the past decades, such as a transition from a focus on the product, transactional marketing, acquiring clients (responsive marketing approach) and market share towards a customer centric approach, relationship marketing, two-way communication, retaining customers (proactive and holistic marketing approaches) and share of customer. Thus, in this fastmoving and highly competitive scenario Customer Relationship Management (hereafter referred to as CRM) emerges as a business philosophy devoted to enhance customer relationships and consequently create value for both the company and the customer.

Customer Relationship Management (CRM)

2015 ◽  
pp. 1884-1903
Author(s):  
Myria Ioannou
Keyword(s):  
Customer Relationship Management ◽  
Relationship Management ◽  
Customer Relationships ◽  
Relationship Building ◽  
Customer Relationship ◽  
Critical Perspective ◽  
Research Traditions ◽  
Intense Debate

The considerable value of CRM is well documented in the literature, and it is further exemplified in today's highly turbulent, competitive, and fragmented markets. Nevertheless, the conceptualisation and operationalisation of CRM remains an area of intense debate, and hence, by reviewing and synthesising literature from the various relational research traditions, the chapter offers a critical perspective as to what customer relationships are and discusses the conditions under which relationships can flourish. To this end, the chapter discusses the conditions, which are conducive to relationship building, highlights the different forms that customer relationships may assume as well as their distinct developmental paths, and offers a number of recommendations to enhance relational efforts.

scholarly journals PECULIARITIES OF CUSTOMER RELATIONSHIPS MANAGEMENT: A CASE OF LITHUANIAN COMPANIES / SANTYKIŲ SU KLIENTAIS VALDYMO YPATUMAI: LIETUVOS ĮMONIŲ ATVEJIS

2014 ◽  
Vol 6 (1) ◽  
pp. 9-16
Author(s):  
Gintarė Bliujūtė ◽  
Renata Korsakienė
Keyword(s):  
Service Quality ◽  
Customer Relationship Management ◽  
Relationship Management ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Quality Requirements ◽  
Relationships Management

Increasing competition among companies, constantly growingproduct and service quality requirements, rapidly changing consumerbehavior, technology advancements and changes enablescustomer to make decisions which product or service to buy. Inthis context, customer relationship management is becoming animportant tool creating preconditions to maintain loyal customersand improve company’s performance. The paper analyzespeculiarities of customer relationship management in Lithuaniancompanies. In order to reveal motives and problems of customerrelationship management implementation the survey was carriedout. 82 companies participated in the survey. At the end of thepaper conclusions are presented. Didėjanti konkurencija tarp įmonių, nuolat griežtėjantys produktų ir paslaugų kokybės reikalavimai, sparčiaikintanti vartotojų elgsena, technologijų pažanga ir jų lemiami pokyčiai versle, sudaro sąlygas vartotojui rinktis – priimtisprendimus, kokią prekę ar paslaugą įsigyti. Šiame kontekste santykių su klientais valdymas tampa svarbia priemone, sudarančiaprielaidas išlaikyti vartotojus lojalius bei pagerinti įmonės veiklos rezultatus. Analizuojami santykių su klientais valdymoypatumai Lietuvos verslo įmonėse. Siekiant atskleisti santykių su klientais valdymo diegimo motyvus bei problemas,atliktas tyrimas – apklaustos 82 įmonės. Tyrimo rezultatai rodo, kad Lietuvos verslo įmonės supranta santykių su klientaisnaudą ir reikšmę, tačiau aktyvesnį santykių su klientais diegimą riboja tinkamos strategijos stoka bei darbuotojų priešiškumasgalimiems pokyčiams.

The impact of customer knowledge and customer relationship management on service quality

2014 ◽  
Vol 6 (1) ◽  
pp. 77-96 ◽  
Author(s):  
Shu-Mei Tseng ◽  
Pin-Hong Wu
Keyword(s):  
Service Quality ◽  
Customer Relationship Management ◽  
Management Practices ◽  
Relationship Management ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Future Research ◽  
Customer Knowledge ◽  
Content Type ◽  
The Impact

Purpose – Enterprises realize that customers are their most important asset and recognize that a high level of customer satisfaction can only be achieved by enhancing service quality. Thus, how enterprises acquire customer knowledge by which to initiate and maintain customer relationships, as well as to enhance service quality has become an important issue. The paper aims to discuss these issues. Design/methodology/approach – This study uses a questionnaire and statistical analytical techniques to explore the impact of customer knowledge and customer relationship management (CRM) on service quality. Findings – The results indicated that customer knowledge has a positive influence on service quality and CRM is the partial intervening variable between customer knowledge and service quality. That is, customer knowledge enhances the CRM, while CRM, in turn, increases service quality and provides competitive advantages. Research limitations/implications – This research explored the impact of customer knowledge and CRM on service quality based on the company's perception and there was no validation on the customers' perception of the company. Therefore, it is suggested that future research should involve company staff, current customers, and latent customers to strengthen the triangulation. Practical implications – The results found that customer knowledge is indeed an important source of competitive advantage. Hence, enterprises should acquire valuable customer knowledge in order to enhance the relationship with customers, as well as enhance their service quality. Originality/value – There is still little related literature investigating the relationships amongst customer knowledge, CRM, and service quality. Hence, this study applies questionnaire methods as the main research tools in order to conduct an in-depth investigation into the influence of customer knowledge and CRM on service quality. Furthermore, this research is expected to provide enterprises with valuable suggestions for management practices.

scholarly journals The Impact of Customer Relationship Management (CRM) Technology on  Business-to-Business Customer Relationships

2021 ◽  
Author(s):  
◽  
James Edward Richard
Keyword(s):  
Technology Adoption ◽  
Conceptual Model ◽  
Customer Relationship Management ◽  
Relationship Management ◽  
Customer Relationships ◽  
Customer Relationship ◽  
Relationship Model ◽  
Relationship Performance ◽  
The Impact ◽  
Depth Interviews

<p>Recent academic and practitioner studies suggest that Customer Relationship Management (CRM) provides improved business opportunity, yet has received mixed performance reviews in the extant literature. This research explored the relationship between CRM technology adoption, market orientation and relationship marketing, and the subsequent impact on business relationships and relationship performance. A conceptual model was developed based on the literature and information obtained through one-to-one in-depth interviews. The model incorporated key relationship constructs; trust, commitment and communications quality, and investigated the impact of CRM technology adoption on these constructs and relationship performance. In addition the firm's market and technology orientation was considered as critical antecedents to the adoption of CRM technology. The research incorporated a two-phased, cross-sectional design. The first research phase was exploratory, utilising one-on-one in-depth interviews with key informants. The objective was to explore the conceptualised CRM technology adoption - customer relationship model for robustness and realism. These findings were used to refine the CRM technology adoption - customer relationship model and the measurement instrument before proceeding with the explanatory phase of the study. The explanatory phase of the research consisted of an instrument development stage - creating, testing and finalising the research instrument, followed by a quantitative study of medium and large business in the manufacturing, services and wholesale industries in New Zealand. The objective of this stage of the research was to test and validate the CRM technology adoption - customer relationship model and measurement instruments. Measures of CRM technology adoption were collected from the supplier firms, while measures of relationship strength and relationship performance were collected separately from the customer perspective. The benefits for practitioners include methods to improved relationship and business performance from CRM technology implementation. The key benefit for academia is the development of a conceptual model linking CRM technology to RM, and providing insights into the synergies available from technology.</p>

Sign in / Sign up

Export Citation Format

Share Document