...3.0 Findings This article aimed at determining components of CRM strategy and its effects to competitive advantage achievement. The findings of this article highlight the effects of CRM on competitive advantage and the components of CRM strategies. The findings were synthesized and summarized from few previous researches’ results which studied the topic of CRM. There are few components of CRM such as the components of perception and customers’ separation, attracting and protecting customers being faithful (making loyalty), emphasis on quality, improving and specializing the relations with the customers (customization), complaint investigation, invest in internal people, and relationship-based interfaces (Mehrdad & Hallaj, 2011; Aihie & Az-Eddine,...
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...J. of the Acad. Mark. Sci. DOI 10.1007/s11747-011-0248-3 Exploring CRM effectiveness: an institutional theory perspective Bas Hillebrand & Jurriaan J. Nijholt & Edwin J. Nijssen Received: 25 June 2010 / Accepted: 28 January 2011 # The Author(s) 2011. This article is published with open access at Springerlink.com Abstract This study identifies the potential contribution that institutional theory can make to understanding the success of marketing practices. Based on institutional theory, we argue that the effectiveness of marketing practices decreases when firms are motivated to adopt such practices under the influence of institutional pressures originating in firms’ environments. However, alignment between a practice and a firm’s marketing strategy may buffer against these negative effects. We apply these insights to the case of customer relationship management (CRM). CRM is considered an important way to enhance customer loyalty and firm performance, but it has also been criticized for being expensive and for not living up to expectations. Empirical data from 107 organizations confirm that, in general, adopting CRM for mimetic motives is likely to result in fewer customer insights as a result of using this practice. Our study suggests that institutional theory has much to offer to the investigation of the effectiveness of marketing practices. Keywords Customer relationship management . Institutional theory . Mimetic motives . Adoption . Marketing practices B. Hillebrand...
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...The Effect Of Customer Relationship Management (CRM) On Customer Satisfaction In Banking Sector by Abdelmenam Ahmed Deghady Supervisor : Dr. Ashraf Labib Table of Content CHAPTER 1 : INTRODUCTION................................................................................................3 1.1 Introduction..........................................................................................................................................................4 1.2 Research Problem.............................................................................................................................................5 1.3 Study Hypothesis................................................................................................................................................5 1.4 The study variables.............................................................................................................................................6 1.4.1 Independent variables.............................................................................................................................6 1.4.2 Dependent variables................................................................................................................................6 1.5 Research Objectives...........................................................................................................................................6 CHAPTER 2 : Research Methodology...
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...Conceptual Framework for E-CRM Project Deployment in Indian Banks Ashwini Atul Renavikar ashvinirenavikar@yahoo.co.in University of Pune Sharad L Joshi sharadljoshi@gmail.com Marathwada Mitra Mandal Institute of Mgt Education, Res and Training, Pune A survey of Database Group (2006) has revealed that approximately 65% of the financial institutions have failed in getting expected benefits from huge investments in CRM technology. Another finding of the study conducted by I-L Wu and K-W Wu (2005) approximately 60% of the web-based CRM software (e-CRM) installations are failures. With these findings at the background the researchers have attempted to study the aspect of e-CRM deployment in 11 Indian banks (34 branches) with specific reference to banks in Pune and Mumbai. The study has been conducted in a sectoral comparison of public, private and cooperative banks. The study has contributed to the body of knowledge by suggesting a conceptual framework – PCM-PPT framework which is a result of quantitative and qualitative analysis of responses by bankers and e-CRM consultants. Keywords: e-CRM, Relationship Marketing, McCall’s Quality Factors 1. Introduction Customer relationship management (CRM) is that part of an enterprise’s business strategy that enables the entire enterprise to understand, anticipate and manage the needs of any current and potential customers. CRM is not an event or a technology, or even an application or a process. Ideally, CRM is a comprehensive strategy...
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...Definitions of CRM “the process of formulating and implementing marketing activities characterized by an offer from a firm to contribute to a designated cause when customers make purchases” (Varadarajan and Menon, 1988: 60). Despite being broadly accepted, this definition has been widened through the years with the contributions of other authors. Specifically, it was in the mid-90’s when Kotler and Andreasen defined CRM as “any effort by a corporation to increase its own sales by contributing to the objectives of one or more nonprofit organizations” (Kotler and Andreasen, 1996: 304). Two years later, Business in the Community, an organization which develops CRM programmes in the UK, stated that CRM programmes were a commercial activity in which companies were linked to social causes for mutual benefit (Business in the Community, 1998). And one year after, in 1999, Pringle and Thompson stated that CRM was “a strategic positioning and marketing tool which links a company or brand to a relevant social cause or issue, for mutual benefit” (Pringle and Thompson, 1999: 3). This statement widened the contributions made until that date, stating for the very first time that CRM was a strategic marketing tool and therefore a long-term strategy. What was more, and according to these authors, “the distinctive characteristic of the true Cause Related Marketing is longevity. Charity promotions are by definition shorttermist both in the actual period during which they...
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...1. What is CRM? Define CRM is concerned with the creation, development and enhancement of individualized customer relationships with carefully targeted customers and customer groups resulting in maximizing their total customer life-time value. Example of CRM Telemarketing teams CRM software can be particularly valuable for businesses that sell over the phone. A specialist business magazine has found that its current practice of keeping leads in different central databases makes it difficult for sales people to systematically call prospective subscribers. The publisher implement a CRM solution with a single, central database connect to a telesales software package. Now the publisher's sales force has an automated system that brings up the details of a lead whilst dialing the number at the same time. 2. How CRM is important to brand management? -Able to segment markets more efficiency -Follow trends of mass customization -Identify customer needs with right product -Extend brand equity as a total corporation Example Luxury brands have so far been reluctant to adopt any of the classical tools of mass marketing. One of these is customer relationship management (CRM). Prestigious brands are, however, now starting to examine the benefits of the ‘lifelong customer value’ approach, beyond building the social prestige of their names. This paper develops ‘why’ luxury brands need to apply CRM systems and ‘what’ they could achieve by doing so, and addresses ‘how’ this could...
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...Sport MarHeting Quarteriy, 2006, 15, 184-189, © 2006 West Virginia University Nike's Corporate Interest Lives Strong: A Case of Cause-Related Marketing and Leveraging Colleen McGlone and Nathan Martin ( involved in CRM, as well as addresses ethical dilemmas that may arise when these campaigns are being considered by both corporations and non-profit organizations. Nike's Corporate Interest Lives Strong: A Case of Cause-Related Marketing and Leveraging Sport Sponsorship Corporate sponsorship of athletes, facilities, and events is not a new phenomenon in the sport marketing wodd. Sponsorship appears td be everywhere, from sponsored stadiums and fields to apparel and clothing. This surge in sponsorship has not only increased the expense of sponsorship, but it has also created an environment where cutting through advertising clutter has become more difficult. With changing consumer habits and the need to target specific lifestyle segments, corporations are looking to use s]5ort sponsorship more frequently as a means to meet a variety of objectives (Belch & Belch, 1995; Shimp, 1997). Specifically, sport sponsorship is "a business relationship between a provider of funds, resources, or services and a sport event or organization, which offers in return specific rights that may be used for commercial advantage" (Howard & Crompton, 2004, p. 434). Of all the commercial advantages a corporation may seek to exploit through sport sponsorship (e.g. image building, brand building,...
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...organization: organizational design for e-CRM M.F. Smith & Associates, Inc., Morristown, New Jersey, USA Keywords Information systems, Transaction costs, Organizational design, Teams, E-commerce Abstract In 1998 J.P. Morgan's analysts forecast that the market for e-CRM (customer relationship management) solutions would grow rapidly. Since then more than 700 e-CRM firms have emerged. The convergence of information technologies caused enterprise information systems providers to add e-CRM functionality to their systems, thus further increasing the number of e-CRM suppliers. The proliferation of e-CRM concepts, models and technologies causes significant confusion and uncertainty. Corporate executives question the economic benefits of investing in multimillion dollar e-CRM projects, ponder about the right business and organizational models for e-CRM, and are uncertain which e-CRM models and technologies will prove both profitable and sustainable over time. With so many failed e-CRM initiatives some executives wonder whether e-CRM is not simply a hype. In the present paper what e-CRM is, from where the economic benefits from investing in e-CRM derive, and the evolution of alternative e-CRM models are elaborated. It is also argued that successful e-CRM projects are not narrowly departmental, but instead organization-wide initiatives. The paper presents a conceptual framework for e-CRM organizational architecture. The findings in the paper are based on e-CRM industry analysis, evaluation and...
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...on the conceptual and theoretical foundations of RM. A number of theoretical perspectives developed in economics, law and social psychology are being applied in RM. These include transactions cost analysis, agency theory, relational contracting, social exchange theory, network theory, and inter-organizational exchange behavior. Resource allocation and resource dependency perspectives and classical psychological and consumer behavior theories have also been used to explain why organizations and consumers engage in relational behavior. An overview of these theories will help develop insights on RM from multiple perspectives. Session 1 : CRM : The Strategic Imperatives Reading – Chapter 1 Session 2: Conceptual Foundations of CRM Reading – Chapter 2 Session 3: Building Customer Relationships Reading – Chapter 3 Session 4: Economics of CRM Reading – Chapter 4 Additional Recommended Readings Module 1 Brodie, R. J., Hollebeek, L. D., Jurić, B., & Ilić, A. (2011). Customer Engagement: Conceptual Domain, Fundamental Propositions, and Implications for Research. Journal of Service Research, 14(3), 252271. Egol, M., Hyde, P., Ribeiro, F. and Tipping, A. (2004) The Customer-Centric Organization: From Pushing Products to Winning Customers’ http://www.booz.com/media/file/The_Customer_Centric_Organization.pdf Roland Rust, Valarie A. Zeithaml ,and Katherine N. Lemon (2004), “Customer-Centered Brand Management,” Harvard Business Review, September, pp. 110-118. Parvatiyar, A and...
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...Social Media: Effects on Marketing and the Public ITT Abstract This will help describe the effects of social media on the public as well as in sales. The people that are referenced within are describing how there sales job market. Social Media: Effects on Marketing and the Public Social media has changed how we do our daily business. As far as humans have been introduced to products there has been a way to market them. The way producers market their products has only changed. All of the changes are not too bad; the use of social marketing has helped many salespeople sell their products. With social media salespeople have the ability to target more people. With the current use of social media at their fingertips, salespeople have embraced the use of it and made it work to their advantage. When Twitter celebrated five years, compared to its regular forms of marketing it had 150 million users in four years. (Raj Agnihorti, 2012) For such an achievement to happen so rapidly meant that social media was the way to go. Salespeople are an important to the company. Social media similar to Facebook, Twitter, and others like them help spread the word about products. Products cannot only be order from web sites one can also leave feedback on the product. Through social media purchasers may remain anonymous. (Rebeca Walker Naylor, 2012) With the consumer being an anonymous person, the company does not need to spend countless dollars to advertise; people will do it...
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...businesses in successfully implementing strategies aimed at winning and retaining customers profitably. It is also helping businesses shift from a short-term transaction based mode of operation in their interactions with customers to a long-term relationship mode. Objectives – The objective of this course is to help students understand the concept and practice of CRM derived from research and applications across businesses. These concepts and applications from real life case studies will help identify opportunities, which can be successfully implemented for long term profitability. Pedagogy – The teaching methodology will include a mix of lectures, discussions, presentations by practitioners, videos, exercises and case analysis. The cases are integrative in nature but will also help develop an appreciation of specific elements of CRM. Each session will require preparation of assigned reading / case and active participation by students. A significant portion of the performance will depend on student’s contribution to the class. Group Project – Identify any organisation which is practicing some form of CRM. Start working with them to understand the objectives, strategy, structure and process of relationship management. Identify the key issues they faced in implementation especially related to financial and marketing evaluation of the program. Interview some...
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...CUSTOMER RELATIONSHIP MANAGEMENT (CRM) EVALUATION: DIFFUSING CRM BENEFITS INTO BUSINESS PROCESSES Sigala, Marianna, University of the Aegean, Michalon 8, 82100 Chios, Greece, m.sigala@aegean.gr Abstract Although CRM is one of the fastest growing management approaches being adopted across many organizations and particularly tourism and hospitality firms, the deployment of CRM applications has not always delivered the expected results while many CRM initiatives have failed. Consequently, the inability of CRM applications to deliver expected benefits has not only intensified the validity of previous findings and claims regarding the ICT productivity paradox, but it has also boosted current research. However, although the latter provides anecdotal evidence of the impact of ICT management practices on CRM effectiveness, there is a lack of empirical studies examining the relationship between CRM management and performance aspects. This study aims to fill in this gap by investigating the relation between firms’ CRM applications and exploitation with their ICT management practices and CRM benefits. The investigation and validation of the former are valuable, since it would enable managers to maximize CRM benefits by identifying and allocating the appropriate resources, time and efforts to CRM implementation. Relations are tested by gathering data from Greek tourism and hospitality companies. Findings provide useful practical suggestions for CRM evaluation and implementation strategies...
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...Hilton Hotel Corporation The Hilton Hotels Corporation, one of the leading international companies in the hospitality industry started with a humble beginning in 1919, when Conrad Hilton bought the first of what would later become an international chain of hotels and resorts, revered by competition and valued by customers, for the high quality of hospitality and leisure services provided as well as original hotel and travel concepts presented. With an international portfolio of 9 hotel brands that extends to up to 79 different countries worldwide, the Hilton hotel corporation has more than 3,400 hotels spanning the globe and approximately 22 million guests across all nine brands owned by Hilton. The goal Hilton aspires to achieve however is to be the first choice of guests, team members and owners alike, the paramount global hospitality company, which is reflected solidly within the company’s core values which are the drive of the corporation’s team members. H HOSPITALITY I INTEGRITY L LEADERSHIP T TEAMWORK O OWNERSHIP N NOW (Hilton worldwide, 2009) Through creating exceptional guest experiences, Hilton was able to ensure that each customer is made to feel valued. Challenges However, with an increasing number of competitors in an aggressive and quite competitive market, A diverse number of properties in 79 around the world, each with unique cultural norms and traditions and a changing hospitality market, due to the increasing bargaining power customers...
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... Abstract CRM, known as Crew Resource Management was once called Cockpit Resource Management. This term got expanded due to the fact that the teamwork of the crew of an aircraft went far beyond just the realm of the cockpit of the aircraft, which basically referred to only the personnel in the cockpit, the pilot, co-pilot, flight engineer, and any other personnel who was stationed in the cockpit area. CRM is very crucial to the safe operation of the aircraft and ground crew personnel. In my opinion, the two crucial aspects of CRM are leadership and communication in the cockpit. There are other important characteristics of CRM as well, such as having a sterile cockpit is very important. So let’s take a look at CRM as we know it. What Is Crew Resource Management? Crew Resource Management—CRM, in layman terms is the teamwork of all aircrew personnel of an aircraft to conduct the safe flight of an aircraft. Now the official definition of CRM is a management system which makes optimum use of all available resources, equipment, procedures, and people- to promote safety and improve the efficiency of flight operations. CRM focuses on interpersonal communications, leadership, and decision making in the cockpit. CRM also focuses on the proper response to threats to safety and the proper management of crew error. We need to look at and make clear what establishes a “team” in CRM. Basically, everyone who participates...
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...and oftentimes being disappointed with the results. Gummesson (2004) describes CRM as "the values and strategies of relationship marketing with particular emphasis on customer relationships- turned into a practical application." CRM has become a necessity to successfully and profitability manage customers and a firm’s relationship with them, with the market reaching a value of approximately $11.5 billion in 2002. (Xu et al. 2002). However, despite this large spending it is estimated that 70% of CRM implementations fail. (Xu et al. 2002). There are a number of reasons for these failures, such as a failure to implement it throughout the organization and resistance from employees. But in some cases the buyer-seller relationship does not merit a collaborative-style relationship; the customer may only require a transactional relationship. It is because of this reason than I believe that CRM does not always have to constitute the heart of B2B marketing. Many firms adopt CRM technologies because it is what their competitors are doing, without clarifying exactly what they hope to achieve from it. Many do not realize that they are already undertaking basic CRM practices, without the use of expensive systems such as Oracle or Siebel. Gummesson (2004) points out that the behavior of the classical industrial salesman in many successful companies was the same that is advocated in relationship marketing, CRM and key account management, such as, working in the long term, not evaluating customers...
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