A Framework for Customer Relationship Management

Winer, Russell S.

doi:10.2307/41166102

Cited by 615 publications

(404 citation statements)

References 4 publications

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“…Perhaps it would be more constructive for marketing to look toward its own work and expertise. For example, the capital asset pricing models that estimate the financial values of a firm's customers, based on discounted cash flow analysis, are by now well established in marketing (Gupta et al 2004Lehmann 2003, 2006;Rust et al 2000;Villanueva and Hanssens 2007;Wiesel et al 2008;Winer 2001). The sum total of the values implied by these models should approximate the value of the firm's business operations.…”

Section: Capitalizing On Marketing Knowledge: Alpha Picking and Betamentioning

confidence: 99%

Commentary—The Economic and Statistical Significance of Stock Returns on Customer Satisfaction

2009

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A ccording to Jacobson and Mizik [Jacobson, R., N. Mizik. 2009. The financial markets and customer satisfaction: Reexamining possible financial market mispricing of customer satisfaction. Marketing Sci. 28(5) 810-819], excess stock portfolio returns for firms with strong customer satisfaction are small and statistically insignificant, and if there is any above-market performance at all, it is due to a small set of firms in the computer and Internet industries. But their data seem to suggest the opposite. The returns are actually both exceptionally large and significant. Using monthly data, their portfolio consisting of strong American Customer Satisfaction Index (ACSI) firms outperformed the market by 0.0053, corresponding to 6.4% cumulative risk-adjusted above-market returns on an annual basis over a 10-year period-a performance that would beat at least 99% of all large-cap U.S. stock funds tracked by Morningstar. Using a different treatment of risk, their annualized risk-adjusted return is a whopping 8.4% better than market. After eliminating computer, Internet, and utility companies, they find that the monthly risk-adjusted abnormal returns drop to 0.0045, which corresponds to an annual above-market return of 5.4%. This too is better than 99% of all actively managed stock funds in the population. Yet Jacobson and Mizik conclude that these returns are not statistically significant and that there is no evidence that stock returns from firms with strong customer satisfaction outperform the market over the long run.The failure to reject the null hypothesis is probably due to a lack of statistical power in Jacobson and Mizik's analysis. We discuss why this is likely the case and then present new data updating the results from our original article [Fornell, C., S. Mithas, F. Morgeson III, M. S. Krishnan. 2006. Customer satisfaction and stock prices: High returns, low risk. J. Marketing 70(1) 3-14]. The above-market returns persist and are both economically and statistically significant.

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Section: Capitalizing On Marketing Knowledge: Alpha Picking and Betamentioning

confidence: 99%

Commentary—The Economic and Statistical Significance of Stock Returns on Customer Satisfaction

2009

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“…In the context of proactiveness, there are three aspects of customer engagement that are particularly interesting: proactive service, customer knowledge, and customer influence (Winer, 2001;Narver et al, 2004;Kumar et al, 2016). Proactive service refers to the firm proactively taking action to ensure customer satisfaction, e.g.…”

Section: Customer Engagementmentioning

confidence: 99%

“…Proactive service refers to the firm proactively taking action to ensure customer satisfaction, e.g. through regularly checking if they have any issues the firm can help with rather than waiting for them to start complaining (Winer, 2001;Reinartz, Krafft & Hoyer, 2004). Customer knowledge refers to using the close relationship with the customers to gain a superior understanding of their circumstances, but also to actively involve key customers in the product development process in order to better ensure that their needs will be satisfied by a new offering (Joshi & Sharma, 2004;Kumar & Bhagwat, 2010).…”

Section: Customer Engagementmentioning

confidence: 99%

Exploring Proactive Market Strategies : Managing the Market to Create Value

Brege

2018

Linköping Studies in Science and Technology. Licentiate Thesis

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How can firms become more successful and achieve higher business performance? How can they manage more complex and dynamic markets and maintain a high competitiveness? The answer is: through a more proactive approach to managing the market and creating customer value. This thesis explores proactive market strategies, which are firm's proactive strategies for creating, communicating, and delivering superior value to their customers, thereby achieving superior business performance. Prior literature in market orientation has touched the area of proactiveness in firms' approach to the market, but never properly defines proactiveness and lacks a clear connection to actual firm activities. Thus, in order to better understand how firms can gain the performance benefits from proactiveness, this thesis sets out to explore what proactiveness in a market-strategic context entails and what proactive activities firms perform in implementing their proactive market strategies.The research is based on two papers, each detailing one of the two complementary branches of the research. The first paper presents the conceptual work, focusing on a typology of marketoriented strategic behaviors, which are important for understanding how firms can gain the potential performance benefits of market orientation and how they can achieve behavioral fit among their activities. The second paper presents the empirical work, focusing on the qualitative case study performed and the themes of proactiveness that emerged from it. These papers are then synthesized into a holistic view of proactive market strategies in the thesis.The thesis finds that proactiveness at the firm level in a marketing context means a firm is future-oriented, initiative-taking, change-inducing, and creative. With a basis in this definition and the extensive literature on market orientation, the thesis presents conceptual developments that are important for understanding proactiveness in market strategy, such as a framework for understanding market strategies through firm activities and one for identifying and categorizing different types of proactive activities. Furthermore, the thesis gives more detailed descriptions of the case firms and how their proactive activities help them achieve success.This results in a thorough exploration of proactive market strategies, which contributes to the marketing and strategic management literatures by clearly defining proactiveness, conceptualizing and describing proactive market strategies, and delineating proactive firm activities to better understand how firms are being proactive. In doing so, the thesis provides interesting directions for future research and presents interesting implications for managerial practice. vi vii SammanfattningHur kan företag bli mer framgångsrika och uppnå högre lönsamhet och tillväxt? Hur kan de hantera mer komplexa och dynamiska marknader medan de uppehåller en hög konkurrenskraft? Svaret är: genom en mer proaktiv hållning till att hantera marknaden och skapa kundvärde. Den här avhandlingen utf...

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“…9 Value for the parties involved is created through an interaction process between suppliers, customers, competitors and others; suppliers and customers are often coproducers, and they create value for each other in a joint effort. 10 The goal of CRM is to maximise the value of the relationship to the customer for his or her benefit and the company's profits, 11 but in reality it may be difficult to achieve this goal due to many factors that will be discussed later.…”

Section: Literature Review: the Philosophy Of Customer Relationship Mmentioning

confidence: 99%