Making the least active pay: a simulation of rewards and penalties under Demand Side Participation programs

The orthodox approach for incentivising Demand Side Participation (DSP) programs is that utility losses from capital, installation and planning costs should be recovered under financial incentive mechanisms which aim to ensure that utilities have the right incentives to implement DSP activities. The recent national smart metering roll-out in the UK implies that this approach needs to be reassessed since utilities will recover the capital costs associated with DSP technology through bills. This paper introduces a reward and penalty mechanism focusing on residential users. DSP planning costs are recovered through payments from those consumers who do not react to peak signals. Those consumers who do react are rewarded by paying lower bills. Because real-time incentives to residential consumers tend to fail due to the negligible amounts associated with net gains (and losses) or individual users, in the proposed mechanism the regulator determines benchmarks which are matched against responses to signals and caps the level of rewards/penalties to avoid market distortions. The paper presents an overview of existing financial incentive mechanisms for DSP; introduces the reward/penalty mechanism aimed at fostering DSP under the hypothesis of smart metering roll-out; considers the costs faced by utilities for DSP programs; assesses linear rate effects and value changes; introduces compensatory weights for those consumers who have physical or financial impediments; and shows findings based on simulation runs on three discrete levels of elasticity.

Online customer experience in e-retailing: an empirical model of antecedents and outcomes

The theoretical understanding of online shopping behavior has received much attention. Less focus has been given to the formation of the customer experience (CE) that results from online shopper interactions with e-retailers. This study develops and empirically tests a model of the relationship between antecedents and outcomes of online customer experience (OCE) within Internet shopping websites using an international sample. The study identifies and provides operational measures of these variables plus the cognitive and affective components of OCE. The paper makes contributions towards new knowledge and understanding of how e-

Customer service 140 characters at a time: the users’ perspective

Electronic word of mouth (eWoM) has been adopted by Internet users as a way of communicating their consumption preferences and experiences. Consumers are able to reach out to others, unknown to them, and have online conversations that can influence their behaviour. Organisations need to understand how to respond to these brand-related conversations conducted via social media. By looking through the lens of social capital, this paper contributes to social media and social capital research by studying the perceptions that 44 social media users have of companies that interact with them online. The users value social networks and support as part of their online relationships. However, several new value categories are identified when compared to previous research. Further research is required to investigate possible segmentation approaches and alternative methodological choices.

Adapted customer relationship management implementation framework:facilitating value creation in nursing homes

This paper proposes a framework to support Customer Relationship Management (CRM) implementation in nursing homes. The work extends research by Cheng et al. (2005) who conducted in-depth questionnaires to identify critical features (termed value-characteristics), which are areas identified as adding the most value if implemented. Although Cheng et al. did proposed an implementation framework, summary of, and inconsistent inclusion of value-characteristics, limits the practical use of this contribution during implementation. In this paper we adapt the original framework to correct perceived deficiencies. We link the value characteristics to operational, analytical, strategic and/or collaborative CRM solution types, to allow consideration in context of practical implementation solutions. The outcome of this paper shows that, practically, a 'one solution meets all characteristic' approach to CRM implementation within nursing homes is inappropriate. Our framework, however, supports implementers in identifying how value can be gained when implementing a specific CRM solution within nursing homes; which subsequently support project management and expectation management.

The tenant as a customer: can good service improve real estate performance?

Customer Relationship Management (CRM) theory suggests that good customer service results in satisfied customers, who in turn are more likely to remain loyal and recommend the service provider to others. Proponents of good customer service for tenants claim that landlords should see a return on any investment in their customer service, in the form of enhanced real estate performance. This paper begins by reviewing research on customer service returns in other industries. Through consideration of the characteristics of real estate markets, the paper explains how factors such as (inter alia) lease terms, property market cycles, and property type, might determine the relationship between customer service and real estate performance. The paper concludes that further research is needed to isolate specific aspects of customer service that are most appreciated by customers. It suggests that the financial returns which accrue to landlords adopting a customer-focused approach might indeed be quantified, and suggests an appropriate method for such future research.

Towards developing a customer relationship management (CRM) strategy for supporting pre-implementation activities in business

Effectively preparing and planning for Customer Relationship Management (CRM) strategy is critical to CRM implementation success. A lack of a common and systematic way to implement CRM means that focus must be placed on the pre-implementation stage to ensure chance of success. Although existing CRM implementation approaches evidence the need to concentrate mostly on the pre-implementation stage, they fail to address some key issues, which raises the need for a generic framework that address CRM strategy analysis. This paper proposes a framework to support effective CRM pre-implementation strategy development.

Emerging segmentation practices in the age of the social customer

This paper reports on an exploratory study of segmentation practices of organisations with a social media presence. It investigates whether traditional segmentation approaches are still relevant in this new socio-technical environment and identifies emerging practices. The study found that social media are particularly promising in terms of targeting influencers, enabling the cost-effective delivery of personalised messages and engaging with numerous customer segments in a differentiated way. However, some problems previously identified in the segmentation literature still occur in the social media environment, such as the technical challenge of integrating databases, the preference for pragmatic rather than complex solutions and the lack of relevant analytical skills. Overall, a gap has emerged between marketing theory and practice. While segmentation is far from obsolete in the age of the social customer, it needs to adapt to reflect the characteristics of the new media.