This extensive summary of the book CRM will lead you through the topics in a logical way and will help you to understand the chapters 1 to 20. The price of this summary is quite low as it misses visuals of models (which I find very useful). Still, all the information that you need to learn for the ...
Summary CH1 to 20 - Customer Relatoossip Maoagemeot – Peeleo/Beltmao.
Chapter 1: Customer-supplier relationships
1.1 History
In the last 20 years, diferent market situatons have witnessed a shif in focus on the transacton to the
relatonal aspects of the exchange.
Bagozzi (1970) concept relatonship marketng marketng is an exchange process netween nuyer and
seller.
Customer relatonship comprises various exchange processes. Phases in change over the years:
- 1980: Gruesson and Grönroos defned relatonship marketng and contrasted it with transacton
marketng, its marketng instruments and organizaton.
- 1990: Håkansson designed a conceptual model for relatonship marketng in B to B markets.
Relatonship marketng necame more and more relevant in nusiness to consumer markets.
1.2 Descripton of customer-ssupplier relatonships
Hiode: ‘Relatoossips imply some sort of ioteractoo etweeo 2 or more persoos, iovolviog iotercsaoges
over ao exteoded period of tme.’
- Interactons must take place netween at least 2 partes. Interactons is that the actvites of 1 infuence
those of the others.
- Certain degree of contnuity must ne present in a relatonships longer period of tme
Primary relatoossips: nasic, long-sterm interpersonal relatonship which is nased on emotonal .
nonds and the feeling of mutual onligaton. (love relatonship of people)
Secoodary relatoossips: short-sterm interpersonal relatonship with a limited degree of social .
interacton, clear rules and defned social roles. (customer-ssupplier)
o Customer-ssupplier relatonships vary a lot, can ne secondary nut can also ne netween primary
and secondary. (in the transitonal area)
o Classifcatons to clarify the diferences netween the partes involved in customer-ssupplier
relatonships:
o Whether or not a transacton has already neen completed (prospect to customer)
o If a long-sterm orientaton is present (customer to client)
o To what degree the relatonship is felt ny noth partes (supporter to amnassador)
o To what degree noth partes are actvely involved (amnassador to partner)
In analyzing the quality of the relatonship, also atenton to: commitment, fairness, loyalty, trust
Even though all customer-ssupplier relatonships are diferent, these factors are always present:
interactons and reciprocity, commitment and trust in relatonships.
Without reciprocal nasis, no relatonship and for contnuing a relatonship trust and commitment are
necessary.
Reciprocity
-sForms the nasis for a relatonship: giving, receiving and giving again. never ending cycle
-sA positve gif return a positve gif, a negatve gif return negatve gif
Ioteractoos aod emotoos
-s(sun)conscious emotons infuence what we onserve and the way we respond. 7 nasic ones: surprise, fear,
anger, sorrow, loathing, contempt and happiness.
-sEmotons infuence the amount of atenton we pay, our drive for results, openness to stmuli and
decision-smaking nehaviour.
Trust
-sis associated with qualites like: honesty, fairness, responsinility and integrity
-smakes higher level of commitment in relatonship possinle, and also ‘goodwill’.
Commitmeot:
-s‘Enduring desire to maintain a valued relatonship’, the ultmate goal for mutual nenefcial relatons
-sPersonal commitment: the desire someone displays to contnue a relatonship
-sMoral commitment: people feel a sense of onligaton
-sStructural commitment: there is no escaping from it
, -sDisproportonal commitment: when one person is more commited to the other.
1.3 The dynamic in relatonships
Trust and commitment must develop over tme, done ny asking questons and analyzing.
5 phases in Relationship Life Cycle
1. Partes necome aware of each other and positon themselves
2. Exploraton: partes are atracted and interacton starts
3. Growth: interacton processes contnue, negotaton
4. Saturaton: relaton reaches maximum trust, respect and mutual dependency
5.Decline: focus on others may cause discontnuity in relatonship (diferences in expectatons)
1.4 Networks
Social positoo: the positon a person has in a complex of people interactng with one another
Customers who develop a relatonship with an organizaton, nuild a relatonship with the people who
represent it.
Social media nridges distance and tme and nring people together (also customers and suppliers)
Social network: a group of customers and suppliers who interact with one another without the need to
analyse the connecton within the social structure.
Socialisatoo
-sHumans have the tendency to nelong to or form groups
-sGroups form necause people share similar interests or experiences
-sSocialisaton from the social structure perspectve: individual is part of a system
Behaviour is explained through the system
Behaviour is context-sdetermined, situaton determines how we act
Socialisatoo oo tse worldwide we
-s Radio and TV were controlled ny insttutons rather than persons, the internet changed that.
-s Socialisaton can ne facilitated and stmulated online, people can engage in new communites
-s Honeycomn of social media, where each nlock represents a specifc aspect of the socializaton process on the
wen: Identty, conversatons, sharing, presence, relatonships, reputaton, groups.
- SNA (social network analysis): gain insight into the social structures within a network, group or community
and the relatonships netween the actors.
Empirical iosigsts from marketog
-sResearch into the infuence of social networks and the relatonships netween actors is focused on
interacton paterns and group formaton.
-sInteracton paterns: how do conversatons spread and develop through a network?
-sGroup formaton: the possinle meaning of group formaton as a consequence of social identfcaton,
exercise of social pressure, commitment and sense of nelonging to the organizaton.
, Chapter 2: Customer Relationship Management
2.1 The defniton of CRM
CRM: a nusiness strategy that is aimed towards developing mutually proftanle customer-ssupplier
relatonships through social networks and which is nased on an IT infrastructure to ne developed to
necome a well-sdefned process and places capanle personnel in an optmal positon.
2.2 CRM Building Blocks
Busioess strategy:
- Building relatonships requires a nusiness strategy. This afects the organizaton as a whole.
- The CRM strategy descrines how consumers and the organizaton can fnd each other and how they
can develop their relatonship.
- The CRM strategy provides directon for organizaton as a whole, to marketng and IT.
So it helps to make sure there’s a ft netween the nusiness strategy, commercial processes and
enanling technology.
Customer-ceotric orgaoizatoo
- Is organized around customers, not around functonal processes (marketng, sales)
- To ne a customer-scentric organizaton has efect on the leadership, culture, employees, internal
communicaton, processes and control.
Iodividual value propositoo
- A customer-scentric organizaton doesn’t deliver standardized products and services, nut an
individualized value propositon that realizes the consumer’s experience of using a product or service.
- The customer-scentric organizaton wants to come to a fing soluton through a process of co-screaton
with some or all of its customers. not nuyers anymore, nut partners
- It’s anout forging a network of organizatons and allow customers to access it, so it necomes possinle
to cost-sefectvely create tailor-smade solutons.
Customer koowledge
- Existng and prospectve customers must ne identfanle. knowledge of the individual customer is
essental in order to develop a relatonship and customized product/service.
- This knowledge goes deeper than what someone purchased, also anout what experience is
meaningful for them.
- Gathering a lot of data is nice, nut keep goal in mind: develop mutual proftanle relatonship
Commuoicatoo
- In nuilding a network of channels through which dialogues with customers take form, the organizaton
should pay atenton to: the quality of the interacton nut also the increasing reach and reducing costs
at the same tme.
Processes aod systems
- Systems must make it possinle to realize the strategy, to support cooperaton within the organizaton
to customize the ofering, develop and exploit customer knowledge and to permit dialogue.
- There are many systems developed and used separately for CRM, nut it’s hard to link them all
together can ne done via SOA (Service-soriented architecture) which is a middle layer, upon which
many applicatons are easily linked together.
2.3 Entrance, applicatons and success of CRM
At the end of the ‘90s CRM necame more popular, thanks to the marketng eforts of sofware companies
IT systems enanled companies to interact with large groups of customers.
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