An exploratory study of implementation of customer relationship management strategy

Abstract

PurposeEfforts made in extant literature to link the components of customer relationship management (CRM) strategy to its implementation are insufficient. This paper aims to provide insights on the core components of CRM and the implementation of CRM strategy.Design/methodology/approachA case study of CRM implementation at a large Swedish firm was carried out using open‐ended, face‐to‐face and telephone interview methods to collect data from key informants at both strategic and operative levels. The empirical studies focused on technical and cognitive aspects necessary for successful implementation of a sustainable CRM strategy.FindingsResults show that relationships are not only a tactical weapon, but represent a different, strategic approach to buyer‐seller exchange. Findings also show that implementing sustainable CRM strategy requires the endorsement by and commitment from top management, systematic cross‐functional communication, and mandatory customer loyalty training programmes for all employees.Research limitations/implicationsAttempts made in extant literature to define CRM have been varied. A theoretical model on which future empirical analysis should be based when conceptualizing CRM should consist of a business strategy, a business philosophy and a database application, thereby forming a tripod.Practical implicationsCRM is a strategic business and process issue, not merely a technology solution as most often conceived in practice. The CRM process is a continuous learning process where information about individual customer is transformed into a customer relationship.Originality/valueA process‐oriented integrative framework that facilitate successful implementation of a sustainable CRM strategy. It links components of CRM strategy with the key dimension of its implementation. The depth of the anchorage of this paper in the body of literature is a contribution.

What characterises the culture of a market-oriented organisation applying a customer-intimacy philosophy?

“…Indeed, trust is one of the reasons why customers remain loyal to a company. Previous studies 11,48 also support the importance of trust in relationship strength. Without this trust, one of the cornerstones for building a relationship is gone.…”

“…11,14 For example, Lee et al . 15 argue that the benefi t of managing customer relationships by inputs (acquisition and retention costs) and outputs (revenues) for each customer is that marketing managers can better prioritise their efforts by examining the return on marketing investment and thus better differentiate customers by their relative benefi ts and costs.…”

CRM: A Conceptual Framework of Enablers and Perspectives

“…And also the core dimensions of relationship strategy implementation have summarized in 5S term that content of structure, staff, system, schemes (Osarenkhoe and Bennani 2007). To use effective of mutual criteria and 5S dimensions in the marketing literature, the next future study can focus on them.…”

“…Strategy, is regarding new edges in the market while slowing the erosion of present advantages (Day and Wensley 1988). And also, CRM is a strategic business not only focuses on a technology solutions as most often accepted in practices (Osarenkhoe and Bennani 2007).…”

Progress in customer relationship management adoption: a cross-sector study

“…Customer Relationship Management has its origins in the relationship-based approach to management emerging from the marketing, strategy and supply chain management domains (Osarenkhoe and Bennani, 2007). According to Plakoyiannaki et al (2008), the concept draws on, and overlaps with, customer orientation, database management, and relationship marketing (Payne and Frow, 2005); although the term CRM is more likely to be used to refer to 'information-enabled relationship marketing' (Ryals and Payne, 2001:3).…”