Successful Customer Relationship Management Programs and Technologies: Issues and Trends

The rapidly changing business environment, the heightened competition among companies, shrinkage of markets, and diffusion of the IT through the organisations and their marketing channels have put pressure on businesses to continually review and adopt their traditional strategy (Eid, 2007). However, due to rapidly improving computer technology, it is essential for any organisation to have a well-designed and managed system, which can help it improve performance, undertake better decision making, and achieve a competitive advantage. Thus many organisations have moved from stand-alone business information systems applications to integrated and flexible enterprise-wide systems such as the Customer Relationship Management (CRM) system. In fact, managers cannot afford to avoid thinking about the impact of CRM on their businesses. At the very least, they need to understand the opportunities available to them and recognise how their companies may be vulnerable if rivals seize those opportunities first.

However, successful CRM implementation is complex and difficult. It causes vast changes that needs to be managed carefully to get the full advantage of the CRM application. It is a mistake to view the CRM project implementation as an IT project (Porter, 1987; Davenport & Short, 1990; McKenzie, 2001; Chen & Popovich, 2003; Johnson, 2004; Kimiloglu & Zarali, 2009; Greenberg, 2010; Lukkari, 2011; Ranjan & Bhatnagar, 2011).

This collection, Successful Customer Relationship Management Programs and Technologies, highlights recent trends and advancements as they impact all facets of CRM implementation in an ever-changing age. The aim is to provide broad international coverage of subjects relating to all areas of customer relationship marketing and E-CRM. Emphasis is placed on the publication of articles that seek to link theory with application or critically analyze real-life situations with the objective of identifying good practices in the implementation of the CRM approach. This book contains chapters discussing a range of issues dealing with CRM and customer retention. Below is a brief overview of the chapters that appear in this book.

Chapter 1, “Effective Implementation of Sales-Based CRM: Theoretical and Practical Issues,” written by George Avlonitis and Nick Panagopoulos, discusses the increased usage of Sales Technology (ST) and sales-based CRM systems in recent years. Indeed, the article seeks to increase knowledge in the area by offering a synthesis of prior work into (a) what companies need to consider to effectively implement a CRM system into the sales force, (b) how its impact on a sales force’s performance can be assessed, and (c) what Key Performance Indicators (KPIs) might be incorporated into the system in order to aid the managerial decision making processes. The suggested framework addresses issues of relevance not only for scholars but also for practicing managers by drawing on the authors’ practical experience in this important area. As such, the article adds layers of knowledge for both theory and practice.

Chapter 2, “The Goals of Customer Relationship Management,” by Ronald Goldsmith, proposes that existing manifestations of consumer relationship management theory and practice can be effectively combined into a five-stage model representing the goals of CRM. He suggests a model that integrates the five stages into a seamless process enabled by IT technology and a customer-centric management philosophy. Each stage of the model feeds information forward and backward to enhance the effectiveness of the entire system.

Chapter 3, “Global Account Management (GAM): Creating Companywide and Worldwide Relationships to Global Customers,” by Svend Hollensen and Vlad Schröder, underlines the importance of multilevel relationships in strategic business-to-business relationships. The article addresses various issues related to the recruitment of the global account manager and his supporting team. Finally, the chapter suggests organisational solutions based on best-practice examples.

Chapter 4, “Can Firms Develop a Service-Dominant Organisational Culture to Improve CRM?” written by Jamie Burton, introduces the current fundamental debate in the marketing literature regarding the shift from product or goods-orientated, to service-dominant logic for the conceptualisation of organisational vision and mission (Vargo & Lusch, 2008). Burton suggests that if a shift to service-dominant logic is to lead to firms developing competitive advantage through more effective co-creation of customer-perceived value, then firms need to influence their organisational climate in order to encourage a culture that supports delivery of effective CRM solutions that enable and encourage staff to work to develop relationships that create value with customers that encourage those customers to stay in those relationships. Relevant literature across a number of research paradigms is reviewed in this chapter to investigate the above contention and an agenda for future research is discussed.

Chapter 5, “Identifying the Determinants of Customer Retention in a Developing Country Context,” by Norizan Mohd Kassim, Salaheldin Ismail, and Nor Asiah Abdullah, investigates how image, perceived service quality, and satisfaction determine customer retention in the retail banking industry in a developing country context. The chapter concludes that image also plays an important role in determining retention. Thus, satisfaction is not the sole determinant of retention in retail banking. The interrelationships between the determinants (image, quality, and satisfaction) allow bank managers to better understand the dynamics of customer retention formation.

Chapter 6, “Customer Relationship Management in Social and Semantic Web Environments,” by Ángel García-Crespo, Ricardo Colomo-Palacios, Juan Miguel Gómez-Berbís, and Fernando Paniagua Martín, presents a combination of both Social and Semantic Web Technologies and their application in the particular field of CRM. Tool and technology analysis prove the challenging opportunities for these cutting-edge innovation trends in the CRM domain. The philosophy of Web 2.0 and the upcoming Semantic Technology leading to the next generation of the Web is to be able to customize, profile-based classify, and gain knowledge from the service consumption of the best service according to organizational needs.

Chapter 7, “CRM in the Context of Airline Industry: A Case Study of Mexican Airline,” written by Riyad Eid and Mustafa Zaidi, proposes a conceptual model for Customer Relationship Management (CRM) implementation in the airline industry. The chapter provides new theoretical grounds for studying the CRM. Not only does this study provide an empirical assessment of the CRM model, but it also assesses the basic phases of the CRM implementation which are: 1) Information Phase, 2) Trust Phase, and 3) Objectives Phase. Using the case study methodology, Mexicana Airlines has been used as a single case study to test and verify the suggested model and its phases. 

Chapter 8, “Role of Time in Development of Trust within Hi-Tech SME Business Relationships,” by Khurram Sharif and Salaheldin Ismail Salaheldin, investigates the function of time within hi-tech Small to Medium Sized Enterprise (SME) downstream (i.e. customer) trust-based relationships. A four antecedent (i.e. competence, transaction specific investments, flexibility, and coercive power) research model was developed to represent trust within the SME Business-to-Business (B-to-B) relationships. Time was conceptualized chronologically as duration of a relationship in years. The research outcome supported a significant and positive moderating effect of time on competence to trust and flexibility to trust pathways. However, time had a negative moderating yet significant effect on the association between coercive power and trust. Correlation between Transaction Specific Investments (TSIs) and trust was significant but time showed neither moderating nor deterministic effect on the TSIs to trust link.

Chapter 9, “A Conceptual Model of Customer Innovation Centric,” written by Amin A. Shaqrah, highlights the factors that affect customer innovation at Jordanian IT software companies, such as customer experience, customer communities, and customer knowledge. In order to study this impact, a cognitive fit theory is used to develop a model that describes how these variables will affect the success of the customer innovation process and the organizational learning process. Using a questionnaire consisting of five sub-measures, data was collected from workers at senior and middle management levels. Using the SEM, several conclusions have been reached, and it is expected that they will help Jordanian IT software companies to enhance products and/or services development, customer loyalty, and internal process improvement.

Chapter 10, “Customers Knowledge and Relational Marketing: A Web 2.0 Perspective,” by Pasquale Del Vecchio and Valentina, provides a conceptual framework that helps broaden the understanding CRM in a knowledge management perspective and the role of Web 2.0 technologies in enhancing the effectiveness of that approach. It is in this perspective that the concept of CRM 2.0 is introduced as the strategic approach at the relationship of customers based on the adoption of a new generation of Web technologies. The emerging approach of CRM based on the adoption of Web 2.0 technologies seems to be able to overcome the limitations and drawbacks of the successful implementation of such strategy. CRM 2.0 results more focalized on the active and conscious participation of customers; a more collective dimension of the relationship; and an incredible amount of personal, social, and cultural information available. 

Chapter 11, “Customer Relationship Management through Communication Strategy: Fibres Industry Case Study,” by Abdel Moneim M. B. Ahmed, is attempting to underpin several mechanisms that deliver better communication platforms within a company from the Fibers industry based in the United Kingdom and how this could affect the customer relationship management as a way forward. Survey findings suggest that responding in a timely manner to the environment changes is a must. It emphasizes clearly that the flow of information in all directions would support the effectiveness of the communication strategy.  

Chapter 12, “Media Richness Theory and the Intention to Use Online Stores,” by Eric Brunelle, discusses that although media richness theory has received considerable empirical support in explaining individual channel use and could provide important insights into the explanation of e-consumer behavior, no studies have validated this theory in explaining consumers’ intentions to use online stores. The objective of this chapter, therefore, was to empirically test media richness theory in explaining consumers’ intentions to use online stores in their purchase process. An online survey was carried out, and data from 749 consumers was collected and analyzed using structural equation models. The results open up a new way of explaining consumers’ intentions to use online stores, as they provide empirical support for media richness theory in a commercial context and link it with the theory of planned behavior. 

Chapter 13, “Do Managerial Strategies Influence Service Behaviours? Insights from a Qualitative Study,” by Anna-Lena Ackfeldt and Neeru Malhotra, links the behaviour of FLEs during service encounters to service quality and customer satisfaction evaluations by customers. For this reason, it is important to improve our knowledge and understanding of the drivers of customer directed service behaviours (PSBs). This qualitative study explores the associations between managerial strategies, employee attitudes, and PSBs by conducting in-depth interviews with FLEs. The findings suggest that managerial strategies influence PSBs more so than job attitudes, and the influence of internal communication on job attitudes and PBSs is highlighted.

Chapter 14, “Applications of Customer Relationship Marketing in the UK Hospitality Industry,” by Geoff Lancaster and Diana Luck, discusses a research that has been undertaken in the hospitality industry to gauge dimensions of Customer Relationship Management (CRM) that resonate with guests and employees. An uncovering of perceptual differences of hotel guests and employees was sought to assess its application within the London hotel industry and to investigate CRM as an emerging concept.

Methodologically, triangulation of data and theories was used to investigate staff and customers. A standardised questionnaire gauged elements regarded as being part CRM that resonated with guests and employees and uncovered perceptual differences on how prevailing dimensions of CRM influence certain segments. The objective was to assess differential CRM perceptions to assess their relevancy to the hotel industry in contemporary terms. Research findings suggest that hotel companies should ensure that customer satisfaction, quality of hotel facilities and environment, value for money, expertise of employees, consistency of standards, appreciation of guests, and commitment of senior management are an inherent part of operations. As CRM is closely aligned to management, it is advised that it remains central to all business functions and not simply be regarded as a separate function. Specific elements like creation and maintenance of relationships and segmentation of offerings/benefits are recommended. Not only should customer expectations be monitored, but customer retention should also be actively sought. Thereby, CRM becomes an integral part of a hotel’s offerings and operations.

Chapter 15, “Determinants and Antecedents of Relationship Marketing Orientation: The Impact of Bank Ownership Style on the Bank’s Orientation towards Relationship Marketing,” by Ahmed Abdelkader, Howard Jackson, and John Cook, investigates the extent of Relationship Marketing Orientation (RMO) in the banking sector in Egypt. In financial and banking services, the need to deliver a superior value to customers has assumed paramount importance, as competition intensifies and consumers become more demanding. The study attempts to answer an important question, that is, whether the bank’s ownership style, i.e. state-owned vs. private, will influence the extent of the bank’s relationship marketing orientation. The study findings imply that different ownership of a bank may exert a different emphasis on RMO. Also the study reports that RMO is determined by ten antecedents.

Chapter 16, “Consumer Demand in the Egyptian Market of University Education: An Empirical Investigation,” by Amany I. Shahin, explores consumer demands in the current Egyptian market of university education. Three aspects of the topic are investigated: (1) The value of university education in Egyptian culture, (2) Consumer perceptions regarding the quality of university education, and (3) Consumer preferences regarding the university education service.   Results of the empirical investigation indicate that university education is highly regarded in the Egyptian culture. However, consumer’s perception of its quality is that it is rather moderate. Consumers prefer university studies in courses taught in the English language, universities in nearby geographical location, governmental universities, and top class faculties (Medicine, Engineering, and Pharmacology). University studies are preferred to other alternative studies. The study focuses on university education in Egypt. Although we study one Arab country, we hope the study will also throw some light on higher education in countries that share the same relevant cultural characteristics such as Arab countries and could represent a step towards further research in this direction.  Many studies investigated higher education in different cultures, yet relatively few have considered it in an emerging nation. The present study addresses this gap.

Chapter 17, “A Cluster Analysis of Physician’s Values, Prescribing Behaviour, and Attitudes towards Firms’ Marketing Communications,” by Despina Karayanni, examines the associations between physicians’ personal values with physicians’ prescribing criteria and preferred marketing communications. A better understanding of the above relationships would improve the pharmaceutical companies’ ability to better allocate marketing expenditures, depending on whether their medicine is an established brand or a generic product, and make marketing efforts more cost efficient and effective. Specifically, the purposes of this study were: a) to select appropriate marketing scales for tracing physicians’ personal values; b) to develop appropriate constructs for measuring physicians’ prescription criteria (i.e. buying criteria) and physicians’ preferred marketing communications; c) to examine the relationships among the aforementioned constructs; and d) to examine the taxonomy abilities of physicians’ personal values, i.e., whether we may use them as a basis for physicians’ market segmentation.

The chapter provides empirical insights about how we may consider physicians’ personal values as a basis of segmentation for the pharmaceutical market. The findings may be useful for both marketing strategy planners and researchers examining physicians’ prescription behavior and attitudes towards firms’ marketing communication efforts in the hybrid pharmaceutical market, which lies in between industrial and consumer categories. 

Chapter 18, “Adoption of Electronic Payment Services by Iranian Customers,” by Abbas Keramati, Bahar Hadjiha, Rose Taeb, and Navid Mojir, investigates customers’ adoption of electronic payment services. This study contributes to existing e-payment and adoption research by presenting a detailed description of factors that enhance and inhibit electronic payment adoption. Data source for this study consists of 680 cases to infer conclusion.  Based on obtained results, practical implications and suggestions for Iran’s banks and financial institutions have been discussed. 

Successful Customer Relationship Management Programs and Technologies: Issues and Trends contains current findings relating to trends and developments in customer relationship management in the face of constant technological innovation and adaptation. The ways in which technology has shaped our societies is evident in these selections, which remark on issues, trends, and advancements in the recent world business.

Riyad Eid

University of Wolverhampton, UK