CRM triggers effectiveness through Customer Selection Orientation, Business Cycle Orientation, Cross-Functional Integration and Dual Value Creation: Myth or Reality

Abstract

CRM has been gaining popularity in all business sector organisations. It is playing key role in reshaping and regulating the traditional business practices across globe. CRM being customer-centric strategy attracts heavy investments to strengthen the customer relationships. However, not all organisations are able to reap benefits due to various reasons. One of the reasons is not having clear understanding of CRM, its effectiveness or implications. Many organisations incorrectly perceive CRM to be a standalone technological investment. Focussing only on CRM technology and its usage in enhancing customer relations has obvious limitations as the umbrella of CRM concept is exceptionally wide in reach. It is considered to be driven by combination of resources like People, Process and Technology. This research focuses on effectiveness of CRM beyond technology implementation from organisational standpoint in dealing with customers. Four dimensions are identified that result in CRM effectiveness at an enterprise-wide level i.e. Customer Selection Orientation, Business Cycle Orientation, Cross-Functional Integration, and Dual Value Creation. This study involves questionnaire survey of 35 IT Services Firms in Pune. Data collected is analysed using Binomial test in SPSS. Results confirm these dimensions to be positively triggering CRM effectiveness in Reality and further providing substantial base for better understanding of CRM concept. This research implies that closely following the CRM effectiveness approach will potentially help organisations in monitoring their CRM activity, improving CRM effectiveness and would also provide considerable room for curbing CRM failure possibilities.Managing relationship between firms and its global clientele has been transformed hugely due to the advent of the internet and new associated fast paced technologies.

Shifts in Customer Relationship

“…Very few companies do mass marketing now-a-days. Companies do not try to sell to all customers in a standardized way (Bukhari & Kazi, 2016). Companies analyze the profiles, requirements, and preferences of customers.…”

“…Companies may waste their time, energy, money, and resources if they target all customers. Companies are selective in choosing customers based on certain criteria and in targeting them accordingly (Bukhari & Kazi, 2016). They focus on developing deeper, more direct, and lasting relationships with those customers who really matter (Shah, Kumar, Kim, & Choi, 2017).…”

“…Previously, companies used to adopt mass marketing assuming that the requirements and the preferences of different customers are the same. At present, companies realize that not all individuals should be targeted and it is not advisable to do mass marketing (Bukhari & Kazi, 2016). Companies may waste their time, energy, money, and resources if they target all customers.…”

Enhancing Customer Loyalty Through E-Banking Practices

“…Moreover, It is very critical to create loyalty among customers of the service providing organizations like banking and financial institutions (Casaló et al, 2008;Kheng, Mahamad, Ramayah, & Mosahab, 2010). Banks and other financial intermediaries recognize that, the information technology has already become an important pillar to create loyalty among customers (Bukhari & Kazi, 2016;S.-C. Chen, 2015). Therefore, the banks introduced, E-banking as the newest delivery channel for banking services to create customer loyalty (Mobarek, 2007).…”