Profitable Customer Management: A Study in Retail Banking

The increasing focus of relationship marketing and customer relationship management (CRM) studies on issues of customer profitability has led to the emergence of an area of research on profitable customer management. Nevertheless, there is a notable lack of empirical research examining the current practices of firms specifically with regard to the profitable management of customer relationships according to the approaches suggested in theory. This thesis fills this research gap by exploring profitable customer management in the retail banking sector. Several topics are covered, including marketing metrics and accountability; challenges in the implementation of profitable customer management approaches in practice; analytic versus heuristic (‘rule of thumb’) decision making; and the modification of costly customer behavior in order to increase customer profitability, customer lifetime value (CLV), and customer equity, i.e. the financial value of the customer base. The thesis critically reviews the concept of customer equity and proposes a Customer Equity Scorecard, providing a starting point for a constructive dialog between marketing and finance concerning the development of appropriate metrics to measure marketing outcomes. Since customer management and measurement issues go hand in hand, profitable customer management is contingent on both marketing management skills and financial measurement skills. A clear gap between marketing theory and practice regarding profitable customer management is also identified. The findings show that key customer management aspects that have been proposed within the literature on profitable customer management for many years, are not being actively applied by the banks included in the research. Instead, several areas of customer management decision making are found to be influenced by heuristics. This dilemma for marketing accountability is addressed by emphasizing that CLV and customer equity, which are aggregate metrics, only provide certain indications regarding the relative value of customers and the approximate value of the customer base (or groups of customers), respectively. The value created by marketing manifests itself in the effect of marketing actions on customer perceptions, behavior, and ultimately the components of CLV, namely revenues, costs, risk, and retention, as well as additional components of customer equity, such as customer acquisition. The thesis also points out that although costs are a crucial component of CLV, they have largely been neglected in prior CRM research. Cost-cutting has often been viewed negatively in customer-focused marketing literature on service quality and customer profitability, but the case studies in this thesis demonstrate that reduced costs do not necessarily have to lead to lower service quality, customer retention, and customer-related revenues. Consequently, this thesis provides an expanded foundation upon which marketers can stake their claim for accountability. By focusing on the range of drivers and all of the components of CLV and customer equity, marketing has the potential to provide specific evidence concerning how various activities have affected the drivers and components of CLV within different groups of customers, and the implications for customer equity on a customer base level.

Strategic Sales Process Adaptation: Relationship Orientation of the Sales Process in a Business-to-Business Context

Although previous research has recognised adaptation as a central aspect in relationships, the adaptation of the sales process to the buying process has not been studied. Furthermore, the linking of relationship orientation as mindset with adaptation as a strategy and forming the means has not been elaborated upon in previous research. Adaptation in the context of relationships has mostly been studied in relationship marketing. In sales and sales management research, adaptation has been studied with reference to personal selling. This study focuses on adaptation of the sales process to strategically match it to the buyer’s mindset and buying process. The purpose of this study is to develop a framework for strategic adaptation of the seller’s sales process to match the buyer’s buying process in a business-to-business context to make sales processes more relationship oriented. In order to arrive at a holistic view of adaptation of the sales process during relationship initiation, both the seller and buyer are included in an extensive case analysed in the study. However, the selected perspective is primarily that of the seller, and the level focused on is that of the sales process. The epistemological perspective adopted is constructivism. The study is a qualitative one applying a retrospective case study, where the main sources of information are in-depth semi-structured interviews with key informants representing the counterparts at the seller and the buyer in the software development and telecommunications industries. The main theoretical contributions of this research involve targeting a new area in the crossroads of relationship marketing, sales and sales management, and buying and purchasing by studying adaptation in a business-to-business context from a new perspective. Primarily, this study contributes to research in sales and sales management with reference to relationship orientation and strategic sales process adaptation. This research fills three research gaps. Firstly, linking the relationship orientation mindset with adaptation as strategy. Secondly, extending adaptation in sales from adaptation in selling to strategic adaptation of the sales process. Thirdly, extending adaptation to include facilitation of adaptation. The approach applied in the study, systematic combining, is characterised by continuously moving back and forth between theory and empirical data. The framework that emerges, in which linking mindset with strategy with mindset and means forms a central aspect, includes three layers: purchasing portfolio, seller-buyer relationship orientation, and strategic sales process adaptation. Linking the three layers enables an analysis of where sales process adaptation can make a contribution. Furthermore, implications for managerial use are demonstrated, for example how sellers can avoid the ‘trap’ of ad-hoc adaptation. This includes involving the company, embracing the buyer’s purchasing portfolio, understanding the current position that the seller has in this portfolio, and possibly educating the buyer about advantages of adopting a relationship-oriented approach.

Fidelización, estrategia de perdurabilidad basada en calidad para el FNA

El presente documento hace referencia a la calidad como herramienta para la fidelización y la perdurabilidad en el Fondo Nacional del Ahorro. Para comprender la utilidad de la relación anteriormente descrita se realizará una presentación del FNA, su historia y el propósito que tiene como Institución, además de un breve recorrido por la historia del sector de la vivienda en el país. Por otra parte, se retomarán los conceptos más relevantes relacionados con la calidad, la fidelidad y la perdurabilidad y otros conceptos como la competitividad, la responsabilidad y la estrategia. Por último, se retoma la evaluación de calidad realizada al FNA por parte del ICONTEC en 2010, y a partir de ésta, y considerando además, que en la actualidad el FNA no cuenta con una estrategia de fidelización de clientes, se propone al final del documento el concepto y estrategias de fidelización para la Entidad.

Plataforma Tecnológica Colaborativa Comunidad de Negocios San Antonio, Chile, red de aprovisionamiento local: OpenSupply

El proyecto que se quiere plantear es la creación de una Plataforma electrónica a través de la cual se pretende agrupar a los diferentes proveedores que intervienen en la cadena de abastecimiento de la comunidad logística de San Antonio, abriendo la posibilidad de participación de empresas grandes y pequeñas y más aun promoviendo la creación de las mismas por parte de los ciudadanos de la región, de esta manera, se eliminan las brechas asimétricas existentes entre la oferta y la demanda permitiendo que las empresas medianas y grandes accedan a ofertas y transacciones con empresas proveedoras medianas y pequeñas. Dicho proyecto, tiene como objetivo general el consolidar los procesos de abastecimiento implementados por las empresas a través de la organización y estandarización de los mismos mediante el uso del portal, planteado en el presente proyecto, como apoyo tecnológico. Existen dos conceptos básicos a analizar de manera teórica dentro del proyecto, el primero de ellos es el de clúster logístico-portuario, lo cuales son reconocidos como instrumentos importantes para el progreso del desarrollo industrial, innovación, competitividad y crecimiento, tomando como ejemplos a los puertos de Valencia y Long Beach en la ciudad de Los Ángeles. El segundo concepto es el de E-Procurement, el cual se desarrolla siguiendo los pasos básicos de una cadena de abastecimiento tradicional, sin embargo, lo que genera un cambio real dentro de los procesos es el hecho que los procesos de cotización y seguimiento de proveedores se van a llevar a cabo a través de una plataforma electrónica con base a las evaluaciones que se llevan a cabo por parte de las empresas demandantes de los productos o servicios ofrecidos por las compañías proveedoras. (Renko, 2011) De la misma manera, se tomaran varios proyectos de e-procurement desarrollados a nivel mundial como base comparativa y de apoyo para el presente proyecto tales como: HYDRA: Es un sistema que tiene su soporte en la web, el cual es orientado “en el medio” lo cual lo hace un sistema con una arquitectura híbrida, que posee tanto un diseño en capas como una estructura comprensiva para desarrollar integración de negocios, colaboración y monitoreo en la gestión de la cadena de suministro (Renko, 2011) IPT: BidNet ha proporcionado servicios de oferta de información a miles de proveedores y compradores de bienes en el ámbito gubernamental por más de 25 años. (Bidnet, 2013) E-BUYPLACE: E-buyplace.com es el 1° especialista en SupplierRelationship Management que ha desarrollado un original y singular SRM 100% a través de Internet. (e-buyplace, 2013) RosettaNet: La iniciativa RosettaNet anima a optimizar los procesos de la cadena de suministro mediante el establecimiento, implementación y promoción de estándares abiertos en el mercado e-Business (AQS, Advance Quality Solutions, 2002)

La relación entre los conceptos de relación estratégica comunitaria de las organizaciones con las comunidades y la responsabilidad social

Para maximizar los beneficios, una compañía fundamenta sus acciones en ciertas estrategias que ayudan a cumplir su objetivo de generar utilidades. Entre las diferentes acciones que una organización puede utilizar, están las de responsabilidad social y las de relaciones estratégicas con la comunidad. Partiendo de la definición de comunidad, pasando por una descripción de responsabilidad social y sus diferentes formas de aplicabilidad dentro de una empresa, hasta la definición de relación estratégica con la comunidad; esta investigación dirige sus esfuerzos a determinar el vínculo que existe entre los conceptos de responsabilidad social y relación estratégica comunitaria. Adicionalmente, se plantea que otras estrategias de relacionamiento con clientes, como el mercadeo relacional o el CRM, las cuales enfocan sus esfuerzos en conocer a cada uno de los clientes de una compañía para plantear una oferta acorde a sus necesidades, no son muy efectivas a la hora de crear un vínculo emocional con la comunidad.

Implementation and role of device management Solutions to the end users

This research is based on consumer complaints with respect to recently purchased consumer electronics. This research document will investigate the instances of development and device management as a tool used to aid consumer and manage consumer’s mobile products in order to resolve issues in or before the consumers is aware one exists. The problem at the present time is that mobile devices are becoming very advanced pieces of technology, and not all manufacturers and network providers have kept up the support element of End users. As such, the subject of the research is to investigate how device management could possibly be used as a method to promote research and development of mobile devices, and provide a better experience for the consumer. The wireless world is becoming increasingly complex as revenue opportunities are driven by new and innovative data services. We can no longer expect the customer to have the knowledge or ability to configure their own device. Device Management platforms can address the challenges of device configuration and support through new enabling technologies. Leveraging these technologies will allow a network operator to reduce the cost of subscriber ownership, drive increased ARPU (Average Revenue per User) by removing barriers to adoption, reduce churn by improving the customer experience and increase customer loyalty. DM technologies provide a flexible and powerful management method but are managing the same device features that have historically been configured manually through call centers or by the end user making changes directly on the device. For this reason DM technologies must be treated as part of a wider support solution. The traditional requirement for discovery, fault finding, troubleshooting and diagnosis are still as relevant with DM as they are in the current human support environment yet the current generation of solutions do little to address this problem. In the deployment of an effective Device Management solution the network operator must consider the integration of the DM platform, interfacing with many areas of the business, supported by knowledge of the relationship between devices, applications, solutions and services maintained on an ongoing basis. Complementing the DM solution with published device information, setup guides, training material and web based tools will ensure the quality of the customer experience, ensuring that problems are completely resolved, driving data usage by focusing customer education on the use of the wireless service In this way device management becomes a tool used both internally within the network or device vendor and by the customer themselves, with each user empowered to effectively manage the device without any prior knowledge or experience, confident that changes they apply will be relevant, accurate, stable and compatible. The value offered by an effective DM solution with an expert knowledge service will become a significant differentiator for the network operator in an ever competitive wireless market. This research document is intended to highlight some of the issues the industry faces as device management technologies become more prevalent, and offers some potential solutions to simplify the increasingly complex task of managing devices on the network, where device management can be used as a tool to aid customer relations and manage customer’s mobile products in order to resolve issues before the user is aware one exists. The research is broken down into the following, Customer Relationship Management, Device management, the role of knowledge with the DM, Companies that have successfully implemented device management, and the future of device management and CRM. And it also consists of questionnaires aimed at technical support agents and mobile device users. Interview was carried out with CRM managers within support centre to further the evidence gathered. To conclude, the document is to consider the advantages and disadvantages of device management and attempt to determine the influence it will have over customer support centre, and what methods could be used to implement it.

E-marketing in perspective: a three country comparison of business use of the Internet

Presents an inter-country comparison of the business use of the Internet as part of a competitive marketing strategy. Firstly, examines online marketing strategy, reporting that the professed benefits from Internet use are mostly illusory, particularly for the small business sector. Next, describes a survey of 400 businesses in Australia and New Zealand plus a questionnaire survey of 140 business-to-business marketing organizations in the UK and compares the results in terms of the strategic function, marketing communication function, marketing logistics function and relationship management function. Discovers that there are both similarities and differences in the way the three countries use the Internet. Reports that the major difference is in the strategic use of the Internet to gain competitive advantage, improve cost-effectiveness and relationship management, with Australian and New Zealand firms using the Internet to communicate with local firms and maintain relationships at a local level to support sales made through traditional channels.

GHIRS: integration of hotel management systems by web services

Nowadays web services technology is widely used to integrate heterogeneous systems and develop new applications. In this paper, an application of integration of hotel management systems by web services technology is presented. The Group Hotel Integration Reservation System (GHIRS) integrates lots of systems of hotel industry such as Front Office system, Property Management system, Enterprise Information System (EIS), Enterprise Information Portal system (EIP), Customer Relationship Management system (CRM) and Supply Chain Management system (SCM) together. This integration solution can add or expand hotel software system in any size of hotel chains environment.

A three country comparison of internet marketing

This paper provides information on business use of the Internet (Net) and World Wide Web (Web) across three countries viz Australia, New Zealand and the United Kingdom (UK), and explores reasons for observed differences in use. The study reports that UK firms are more likely to use the Internet in relationship management than are Australasian firms. The conclusion drawn is that while there is less sophisticated business use of the Internet by Australasian companies relative to UK companies, this is but one reason for lower household penetration of the Internet and lower online purchasing levels.

Marketing readiness of websites and organisational performance in Australia and New Zealand: a discussion of pre-test findings

The Web played a role in the burst of economic activity that occurred in the late 1990s that saw company values dramatically rise and fall, business and government processes reshaped, traditional marketing media challenged, and much written concerning the benefits to customers from the adoption of what was initially termed e-commerce. Initial empirical studies of Australian and New Zealand business and government use of the Web found that while the Web was used for marketing communication, it was not as favoured as trade press reports suggested as a marketing transaction channel, nor for relationship management. This paper, which reports the findings of a pre-test of the self-administered online questionnaire stage of a three-phase study, suggests that little has changed in organisational use of the Web in Australia and New Zealand since the late 1990s, even among high network traffic organisations. The pre-test findings reported do not present a clear picture concerning the influence of strategic use of traditional and online marketing mix elements on organisational performance. Analysis employing a Marketing Readiness of Website Indicator (MRWI) content analysis tool is shown not to predict organisational performance as hypothesised.

A model and framework for online security benchmarking

The variety of threats and vulnerabilities within the online business environment are dynamic and thus constantly changing in how they impinge upon online functionality, compromise organizational or customer information, contravene security implementations and thereby undermine online customer confidence. To nullify such threats, online security management must become proactive, by reviewing and continuously improving online security to strengthen the enterpriseis online security measures and policies, as modelled. The benchmarking process utilises a proposed benchmarking framework to guide both the development and application of security benchmarks created in the first instance, from recognized information technology (IT) and information security standards (ISS) and then their application to the online security measures and policies utilized within online business. Furthermore, the benchmarking framework incorporates a continuous improvement review process to address the relevance of benchmark development over time and the changes in threat focus.

Identifying supply chain management and e-commerce opportunities at PaperCo Australia

Established supply chain management techniques such as Quick Response (QR) or Customer Relationship Management (CRM) have proven the potential benefits of reorganizing an organization’s processes to take advantage of the characteristics of electronic information exchange. As the Internet and other proprietary networks expand, however, organizations have the opportunity to use this enabling infrastructure to exchange other, more varied types of information than traditional electronic data interchange (EDI) messages. This is especially true of companies with global operations and interests, which lead to a more diverse set of trading activities. This case presents the experiences of a large Australian paper products manufacturer in implementing an electronic document exchange strategy for supply chain management, including the drivers for change which spurred their actions, and describes the issues associated with trying to support existing and future requirements for document exchange across a wide variety of trading partners. The experiences of PaperCo will be relevant to organizations with diverse trading partners, especially small to medium enterprises (SMEs).

Customer analytics managers' views about market research

Data based on survey responses from online questionaire directed at Customer Analytics managers in the United States. Respondents recruited were mainly in CRM, customer data warehouse or CA roles.

Success was measured on several items asking respondents to compare the success of their organisation with others in their industry on measures such as profitability and new product development. Items about the integration of MR and CA were included. These talked about effectively combining CA and MR for the purpose of identifying new markets and new segments as well as reducing churn.

Survey of market research managers' views about customer analytics

Data based on survey responses from an online questionnaire directed at market research managers in the US.

Using an online questionnaire 435 market research managers in the United States were surveyed about their views on using customer analytics to provide reliable customer information to gain market edge.

Using SPSS AMOS software, the resulting data identifies new trends in the business intelligence industry in transition and particularly the usage by market relations managers of customer analytics information.