Summary Customer Relationship Management (CRM) Chapter 1-9

Summary Customer Relationship Management
NHL Stenden 2.3




Table of Content

Chapter 1: Customer-supplier relationships............................................................................................................2
Chapter 2: Customer Relationship Management.....................................................................................................3
Chapter 3: CRM as an integral business strategy.....................................................................................................4
Chapter 6: Customer data management..................................................................................................................9
Chapter 7: Data analyses and data mining.............................................................................................................10
Chapter 9: Retention and cross-sell analyses.........................................................................................................11
Chapter 11:.............................................................................................................................................................13
Chapter 12: The relationship policy.......................................................................................................................15
Chapter 13: Multichannel management................................................................................................................16
Chapter 15: The online environment.....................................................................................................................18
Chapter 17: CRM systems......................................................................................................................................19
Chapter 18: Implementation of CRM systems.......................................................................................................21

, Chapter 1: Customer-supplier relationships
1.1 History
 In the last 20 years, different market situations have witnessed a shift in focus on the transaction to the
relational aspects of the exchange.
 Bagozzi (1970) concept relationship marketing  marketing is an exchange process between buyer and
seller.
 Customer relationship comprises various exchange processes. Phases in change over the years:
- 1980: Gruesson and Grönroos defined relationship marketing and contrasted it with transaction
marketing, its marketing instruments and organization.
- 1990: Håkansson designed a conceptual model for relationship marketing in B to B markets.
Relationship marketing became more and more relevant in business to consumer markets.

1.2 Description of customer-supplier relationships
 Hinde: ‘Relationships imply some sort of interaction between 2 or more persons, involving interchanges
over an extended period of time.’
- Interactions must take place between at least 2 parties. Interactions is that the activities of 1 influence
those of the others.
- Certain degree of continuity must be present in a relationship  longer period of time
 Primary relationships: basic, long-term interpersonal relationship which is based on emotional.
bonds and the feeling of mutual obligation. (love relationship of people)
 Secondary relationships: short-term interpersonal relationship with a limited degree of social.
interaction, clear rules and defined social roles. (customer-supplier)
o Customer-supplier relationships vary a lot, can be secondary but can also be between primary
and secondary. (in the transitional area)
o Classifications to clarify the differences between the parties involved in customer-supplier
relationships:
o Whether or not a transaction has already been completed (prospect to customer)
o If a long-term orientation is present (customer to client)
o To what degree the relationship is felt by both parties (supporter to ambassador)
o To what degree both parties are actively involved (ambassador to partner)
 In analyzing the quality of the relationship, also attention to: commitment, fairness, loyalty, trust
 Even though all customer-supplier relationships are different, these factors are always present:
interactions and reciprocity, commitment, and trust in relationships.
Without reciprocal basis, no relationship and for continuing a relationship trust and commitment are
necessary.

 Reciprocity
-Forms the basis for a relationship: giving, receiving, and giving again. never ending cycle
-A positive gift = return a positive gift, a negative gift = return negative gift
 Interactions and emotions
-(sub)conscious emotions influence what we observe and the way we respond. 7 basic ones: surprise, fear,
anger, sorrow, loathing, contempt, and happiness.
-Emotions influence the amount of attention we pay, our drive for results, openness to stimuli and
decision-making behaviour.
 Trust
-is associated with qualities like: honesty, fairness, responsibility and integrity
-makes higher level of commitment in relationship possible, and also ‘goodwill’.

 Commitment:
-‘Enduring desire to maintain a valued relationship’, the ultimate goal for mutual beneficial relations
-Personal commitment: the desire someone displays to continue a relationship
-Moral commitment: people feel a sense of obligation
-Structural commitment: there is no escaping from it
-Disproportional commitment: when one person is more committed to the other.