A Customer Relationship Management Model to

Integrate Customer Relationship Experience

Quadrant and CRX Life Cycle
Arpita Mehta
Abstract

Purpose The aim of this paper is to introduce a comprehensive conceptual model to explore
the customer relationship experience (CRX) framework that builds on other customer
relationship management (CRM) and customer experience management (CEM) process models.
This paper proposed CRX critical success factors, CRX Quadrant and CRX life cycle.

Design/methodology/approach A total of 50 articles from the national and international

journals were systematically reviewed to introduce the customer relationship experience (CRX)
critical success factors, CRX Quadrant and CRX life cycle.

Findings A healthy customer relationship relies on you by providing your customers a great
customer experience. Good relationships with customers are generally based on a series of
interactions. The study and practice of customer relationship management (CRM) has
experienced explosive growth over the past decade. Organizations have a greater ability today to
establish, nurture, and sustain long-term customer relationships than ever before. Now a days it
becomes compulsory to stay connected with customers, to build an intimate relationship with
customers, listen to them and satisfy them still the customer experience hasn't always been a
priority for service providers. The CRX critical success factors, CRX Quadrant and CRX life
cycle can help in the same.

Research limitations/implications The paper introduce a conceptual model that needs to be

confirmed empirically. Also, most research pertains to developed countries. Findings are
presented that may not be generalized to developing nations, which may be quite different
culturally.

Practical implications The paper has direct implications for the organization of any size. They
are encouraged to regularly monitor their relationship experience with the help of CRX critical
success factors, CRX Quadrant and CRX life cycle in order to explore the CRM & CEM
implementation challenges as well as the service delivered by the organization to maintain high
levels of customer satisfaction.

Originality/value The paper collates and examines recent findings. It presents a

comprehensive, conceptual model encompassing research work and a holistic view of various
aspects affecting customer relationship and customer experience. Although a large amount of
research has been done, each studying a particular concept, this paper comprehensively brings
together various research findings.

Keywords- CRM, CEM, Customer, Relationship Marketing, Experience Management

1. Introduction

Stuart and Tax (2004) argued that the customer experience can be enhanced by designing the
service system to encourage greater active customer participation. Bate and Robert (2007)
introduced an approach which involves customers in the design of the experience; experience-
based design. Pickles et al. (2008) developed this methodology to demonstrate how three
theoretical components of good design: functionality, engineering and aesthetics can be used as a
framework to improve performance, safety and governance. A challenge that seems to be
emerging from the literature is how can organisations systematically engineer their customer
experiences (Carbone and Haeckel 1994) in order to achieve the triple bottom line i.e. to make
them not only better for the customer but also better for the organisations staff and better for its
bottom line i.e. cheaper and more efficient (Bate and Robert 2007, H.M. Government 2007).
Customer Relationship Management (CRM) is a business strategy to select and manage
customers to optimize long-term value. CRM requires a customer-centric business philosophy
and culture to support effective marketing, sales, and service processes. CRM applications can
enable effective Customer Relationship Management, provided that an enterprise has the right
leadership, strategy, and culture (Thompson 2002);Complementing the communication
technology, information technology provides process automation, data integrity, and security
with much-needed confidentiality for the customer. This enhances the trust and convenience
levels to the customer. With the widespread usage of mobile phones and technological advances,
citizen service channels have become multi-fold in deployment. Internet portals as a single
window of communication, and interaction has been implemented by many governments
(Bukhsh and Weigand, 2011; Lenihan, 2008; Monga, 2008).According to Gartner Research,
CRM went up from 8% in 2005 to 20% of the market in 2008 (Bennett, 2010). Cloud-based
CRM systems can cost efficiently as pay-per-use on manage, maintain, and upgrade, and so
forth. Some enterprise CRM in cloud systems are real-time Web-based and need no additional
interface installed. People may communicate on mobile devices to get the efficient services.
Customercase experience and interaction feedbacks are another way of CRM collaboration and
integration information in corporate organisations to improve businesses services
(Chandrasekaran and Kapoor, 2010).Today, more and more organisations are drifting away from
physical locations of data and moving to Internet-based cloud-computing solutions. Cloud-based
technology simply means that the technology does not live in an IT-based environment and can
be delivered through the Internet, which means that agents, supervisors, and executives can all
access the same information in real time. SaaS and cloud CRM solutions have spurred the
evolution of computing with no more software installations, no infrastructure management, and
no more upgrades to test. With SaaS and cloud CRM solutions, development and implementation
can now be accomplished in a fraction of the time required for on-premise solutions (Bennett,
2010) Generally speaking, governments around the world have been showing little interest to
cloud-based solutions. There is much more preference to use, design, and develop CRM systems
in-house. Nonetheless, the field of practice in the government sector shows the adoption of
unfocused and various tools and techniques to manage and provide online services to citizens
(Yarmoff, 2001). Unfortunately, the fragmented nature of their approach prevents such systems
from being truly effective (Yarmoff, 2001). Coherent and complete set of processes and
technologies for managing relationships with current and potential customers and associates of
the company, using the marketing, sales and service departments, regardless of the channel of
communication (Chen and Popovich, 2003); Most importantly, governments across the world
are finding themselves obliged more than ever to get closer to citizens and create systems that
meet expectations. Citizens are demanding the same convenient service in the public sector that
they are, for the most part, used to enjoying in the private sector. Providing satisfactory services
determines the way any given government is viewed by the citizens and the rest of the world.
According to todays international perspectives, a progressive government includes its citizens
on the path of progress keeping in touch with their needs and requirements and, more
importantly, providing a willing ear to hear their voices. The focus of attention is on enhancing
the role of civil society and for strengthening citizen demand for good governance (Tembo,
2012). The idea of the customer experience appears to have resonated with practitioners and
academics alike and many managers and service researchers now talk about the customer
experience. However, research on the customer experience appears to be in its infancy, certainly
compared to service related topics such as service quality and loyalty. Furthermore, the customer
experience is sometimes seen only as an issue for entertainment type organisations such as
theme parks (experience-centric organisations see Zomerdijk and Voss 2010). However the
literature suggests that whatever the service (or indeed product) a customer is buying or
receiving, that customer will have an experience; good, bad or indifferent, i.e. a service always
comes with an experience (Carbone and Haeckel 1994) and that all service encounters provide an
opportunity for emotional engagement, however mundane the product or service might be (Berry
and Carbone 2007, Voss and Zomerdijk 2007).

2. Customer Experience Management (CEM)

In the marketing literature service quality has been identified as an antecedent to brand loyalty
(Zeithaml et al., 1996). Zeithaml et al. (1996, pg.42) asserted that with few exceptions, the
better the companys service quality scores, the higher are its score on loyalty and willingness to
pay more. Perceived service quality is often viewed as a prerequisite for loyalty. Boulding et al.
(1993) found positive relationship between service quality and repurchase intention and
willingness to recommend. Similarly, Zeithaml et al. (1990) reported a positive relationship
between service quality and the willingness to pay a higher price and the intention to remain
loyal in case of a price increase. Service quality is an attitude based on cognitive perception
whereas, satisfaction is considered as part of the actual experience (Oliver, 1993; Taylor and
Baker, 1994). Past experiences shape the customers brand norm (Cadotte, et al, 1987) and
predictive expectations (Grnroos, 1990a), both of which can be used as comparison standards
and inputs into overall evaluations of service quality and satisfaction. A customers last
experience with a firm therefore should have a positive effect on his or her expectations for the
next service experience (Bitner, 1990). Customers are likely to return to service providers that
have the relationship performance has been found to be good predictors of service repurchase
intentions (Strandvik and Liljander, 1995). For example, Houston, et al. (1998) reported a direct
positive effect of past experiences on service-encounter quality. Word-of-Mouth
communications are the primary means by which consumers search, evaluate and gather
information about services (George and Berry, 1981; Grnroos, 1990b; Murray, 1991; Zeithaml
et al., 1993). Grnroos (1990a; 1990b, p.158) described WOM as the message about an
organisation, its credibility and trustworthiness, its way of operating and its services,
communicated from one person to another. Content of WOM has also been shown to have an
effect on purchase decisions either positively (Richins, 1983) or negatively (Bolfing, 1989). Thus
employees are often pointed out as being a major determinant of the customers experience in
services, and are often associated with the consistency of the service quality delivered (de
Chernatony and McDonald, 1998; Grnroos, 2000). Their behaviour would affect customers in
terms of interaction with the firm (Winsted, 1997 and 1999 and 2000). The price of the service
has shown to have a significant effect on buyers perception of quality (Rao and Monroe, 1989).
In fact, the findings of a considerable number of studies suggest that consumers most often rely
on price to evaluate products or services (Kurtz and Clow, 1991; Dodds, et al. 1991; Zeithaml et
al., 1993). Consumers are more likely to use cues to reduce risk of purchasing services and infer
service quality since services are intangible (Olson, 1977; Murray and Schlacter, 1990). A cue is
encoded and used to categorize a stimulus object, a characteristic event or quality (Crane and
Clarke, 1988) and is usually classified as intrinsic cue or extrinsic cue, which the latter can be
changed with less difficulty because of its indirect aspects surrounding the object (Olson and
Jacoby, 1972). Some important cues consumers use to judge the quality of a service prior to
consumption include price, brand name, advertising and word-of-mouth. The construct of service
quality as conceptualized in the service marketing literature centres on perceived quality, which
defined as a consumers judgement about an entitys overall excellence or superiority (Zeithmal,
1987). In terms of taking a more strategic and holistic approach to experience design, Carbone
and Haeckel (1994) divided experience design into four phases; 1) acquisition of service
experience design skills, 2) data collection and analysis, 3) service clue design, and 4)
implementation and verification. Later Carbone (2004) suggested five steps; 1) build a diverse
design team, 2) drill down to the experience core, 3) focus on clues, 4) develop the experience
narrative or story line, and 5) prioritise implementation opportunities. In 2007 Berry and
Carbone proposed a five step approach; 1) identify the emotions that evoke customer
commitment, 2) establish an experience motif, 3) inventory and evaluate experience clues, 4)
determine the experience gap, and 5) close the experience gap and monitor execution. Carbone
also recommended that to transform an organisation to an experience-based one requires; 1)
vision and strategy (clear experience statements), 2) leadership such as a CXO (chief experience
officer), and 3) transfer of skills and knowledge by getting employee to think in terms of
experience clues. Holbrook and Hirschman (1982) described an experience as an individuals
consumption and interaction of products or services that involve significance affection. This
personal occurrence may lead to a transformation of the individual in the experiences defined as
extraordinary experience which is characterized by a high level of emotional intensity, and is
triggered by an unusual event (Arnould and Price, 1993). One can also experience something
extraordinary when it offers absorption, joy and value, a spontaneous letting-be and a newness of
perception and process (Czikszentmihalyi, 1990). Additionally, experience is defined as the
take-away impression formed by peoples encounters with products, services, and businesses- a
perception produced when humans consolidate sensory information (Carbone and Haeckel,
1994, p. 8). For companies, brand name is a valuable asset that helps communicate quality and
evoke specific knowledge structures associated with the brand (Hoyer and Brown, 1990; Keller,
1993), and plays a significant role in the decision making process of choosing the most preferred
product or service (Jacoby et. al, 1977). Moreover, brand name is considered as one of the
service brand dimensions (OCass and Grace, 2004) and its nature is the available attributes
(Jiang, 2004). Advertising, as one of the principal components of image creation (Meenaghan,
1995), is a critical component of the marketing mix for any service provider. Consumers treat
advertisements as tentative hypotheses that can be tested through product experience (Hoch and
Won, 1986). Servicescape may have either a positive or negative influence on the experience
outcome. The importance of the setting in a broader sense is extensively discussed in marketing,
particularly services marketing (Kotler, 1973; Donovan and Rossier, 1982; Bitner 1990 and
1992; Wakefield and Blodget, 1996; McGoldrick and Pieros 1998; Turley and Chebat, 2002;
Hoffman and Turley, 2002). A positive atmosphere can lead to approach behaviours, which
implies that consumers stay longer in the store, spends more money or that the propensity for
impulse buying increases (Donovan and Rossiter, 1982; Sherman et al., 1997; Spies et al., 1997).
Conversely, a negative atmosphere has been argued to lead to avoidance behaviour, such as a
desire to leave the store or a sense of dissatisfaction (Donovan and Rossiter, 1982; Turley and
Milliman, 2000). Other factors that may increase or decrease the likelihood of perceiving an
outstanding experience are: core service, pre consumption mood and past experience. Core
service is the reason for why the service firm exists in the market. Sasser et al. (1978) as cited in
(Palmer, 1994) called it substantive service which means the essential function of a service. Core
service quality across different types of services such as dental services, auto services,
restaurants and hairstylists were found to directly affect customer satisfaction (McDougall and
Levesque, 2000) cited in (Grace and OCass, 2004). In essence, an outstanding customer
experience will certainly lead to brand loyalty. Brand loyalty as defined by Chaudhari and
Holbrook (2001, p.28) is a deeply held commitment to re-buy or re-patronize a preferred
product or service consistently in the future, thereby causing repetitive same-brand set
purchasing, despite situational influences and marketing efforts having the potential to cause
switching behaviour. Intuitively, brand loyal consumers may be willing to pay more for brand
because they perceive some unique value in the brand that no alternative can provide (Pessemier,
1959; Jacoby and Chestnut, 1978; Reichheld, 1996). According to existing customer experience
literature, customer experience affects loyalty behaviours (Berry et al., 2002; Barsky and Nash,
2002). The researchers argued that well-orchestrated experience by companies deemed to be a
major contribution to creating brand loyalty. In other words, positive experience will be
translated into a brand loyal customer.
3. Customer Relationship Management (CRM)

However, there has been some work in this area. Several operational tools have been
developed to help both design and assess the customer experience, including creating experience
clues (Berry and Carbone 2007), designing the servicescape (Bitner 1992), customer journey
mapping (Shaw and Ivens 2002, Zomerdijk and Voss 2010), service transaction analysis
(Johnston 1999), customer experience analysis (Johnston and Clark 2008), walk-through audits
(Fitzsimmons and Fitzsimmons 1994), and sequential incident technique (Stauss and Weinlich
1997). Pine and Gilmore (1998 and 1999) were some of the first writers to address the notion of
the customer experience (see also Carbone and Haeckel 1994 and Johnston 1999). In their paper
in 1998; Welcome to the Experience Economy and their book the following year; The
experience economy Work is theatre and every business a stage, Pine and Gilmore observed
that as services are becoming more commoditised leading-edge companies are competing on
experiences. In todays government terms, good governance is determined by citizens
satisfaction. Satisfaction is a term frequently used in private sectors, referring to the
measurement of how a product and/or a service supplied by a firm meets or surpasses customers
expectations (Soudagar et al, 2011). It is generally defined as the number of customers, or
percentage of total customers, whose reported experience with a firm, its products, or its services
ratings exceeds specified satisfaction goals (Farris et al, 2010).The relationship and the
relationship management with the citizens and residents the customers and participants of the
government thus rank very high in government work. Governments need to focus on delivering
high-quality, customer-centric, and integrated government services with the key strategic enabler
being citizen-centric service (Al-Khouri, 2012). They need to fundamentally place citizens at the
heart of governments work, and promoting change in the government business to operate in a
more citizen-centric way. Throughout the public sector, initiatives to reinventing government
have elevated customer service and satisfaction to new priorities (Osborne and Gaebler, 1992).
Within the Arab countries, for example, and with the advent of Arab Spring, there is a shift in the
governments mindsets to rethink and reform social services with social inclusion and user
involvement as driving forces in quality improvement. Customer relationship management
(CRM) is becoming a top priority in government business to help agencies achieve their goals of
developing models of service that are more responsive, more citizen-centric, and more efficient.
However, practical research states that there is a considerable state of confusion in the academic
and managerial literature about what is meant by CRM; despite heavy investment by
organisations in CRM, there is extensive reporting of CRMs failure to achieve anticipated
results (Frow and Payne, 2009). To improve service and retain customers, CRM synthesises all
of a companys customer touch points (Yu, 2001);A critical point to remind here is that while
governments are not driven by profit or revenue generation, they are driven by the demand to
create public value (Al-Raisi and Al-Khouri, 2008). The literature emphasises that a deeper
understanding of the dynamics of the CRM triangle components is important (Johnson, 2004;
Teece et al, 1997). Successful CRM case studies indicate the collective role of the technical,
human, and business capabilities (Coltman, 2006). The reason for this is that each capability is
nested within an intricate organisational system of interrelated and interdependent resources
(Coltman, 2006). This resource-based view (RBV) has been subject to criticism (see, for
example, Day et al, 2002; Harris, 2001; Jaworski and Kohli, 1993). The critiquing argument is
based on the fact that such a narrowed perspective lacks sound operational criteria to distinguish
important capabilities from parity ones in addressing a wider view of associated elements.
Nonetheless, the type of emerging thinking from existing literature points to the need to
thoroughly focus on human, technical, and business capabilities as main determinants of
successful CRM systems. Each element needs to be interpreted in the context of the business.
One of the problems with the CRM performance literature to date is that there is a temptation to
be normative about the pursuit of market orientation based on the identification of certain CRM
capabilities (Coltman, 2006).The channel of service delivery is the third dimension of e-service
and is much about the enabling technologies that is, Internet as the main channel of e-service
delivery while other classic and traditional channels are also considered such as telephones, call
centres, public kiosks, mobile phones, televisions, over-the-counter service, and postal mail
service. The extent of Internet-enabled CRM includes electronic CRM (E-CRM), mobile CRM
(M-CRM), and ubiquitous CRM (U-CRM) (Chang and Wu, 2009).

Electronic CRM (E-CRM): Concept derived from E-commerce. It uses intranet, extranet,
and Internet environments (Reponen, 2003). There are major differences between CRM and
E-CRM. From a customer contact perspective, CRM is contact with customer made through
the retail store, phone, and fax. E-CRM uses all traditional methods in addition to Internet, e-
mail, wireless, and PDA technologies. E-CRM is geared more toward front end, which
interacts with the back-end through use of ERP systems, data warehouses, and data marts;

Mobile CRM (M-CRM): Uses wireless networks as the medium of delivery to the
customers (Camponovo et al,2005);
 Ubiquitous CRM (U-CRM), also referred to as Virtual CRM (V-CRM): Uses Virtual
Worlds to create synergies between virtual and physical channels and reaching a very wide
consumer base. However, given the newness of the technology, most companies are still
struggling to identify effective entries in Virtual Worlds (Goel and Mousavidin, 2007).

The role of the strategy is considered a critical pillar (Newell, 2003; Fayerman, 2002; Starkey
and Woodcock, 2002; Rigby et al, 2002; Crosby, 2002; Winer, 2001; Yu, 2001). The CRM
strategy must define the what and howelements of the organisations intents that should aim
to create a single integrated view of customers and a customer-centric approach to address
their customers needs (Roberts-Witt, 2000). The strategy process should also attempt to learn
more about customers needs and behaviours to develop stronger relationships with them and
create public value (Coltman et al, 2003). Building the right type of relationship is the key to
performance improvement (Coltman, 2006). The literature identifies two streams of research to
form the theoretical foundation of a CRM concept (Agrebi, 2006): a strategic stream (relationship
marketing) and a technological stream related to the information systems (Triki and Zouaoui,
2011). Relationship marketing (RM) is more of a strategy designed to foster customer loyalty,
interaction, and long-term engagement (see, for example, Mintzberg, 1994). It is normally
designed to develop strong connections with customers by providing them with information
directly suited to their needs and interests and by promoting open communication. This approach
often results in increased word-of-mouth activity, repeat business, and a willingness on the
customers part to provide information to the organisation. Almost all organisations practice
aspects of RM (Frow and Payne, 2009).

Critical Success Factors (CSFs) approach was first used in IS area. It has been applied to many
aspects of IS (Information Systems) including project management, manufacturing systems
implementation, reengineering, and, more recently, ERP systems implementation (Brown et al,
2000). Within ERP implementation context, CSFs are defined as "factors needed to ensure a
successful ERP project" (Motwani et al, 2002).

Mendoza et al(2006) Saloman et al (2005) Alt and Puschmann (2007)

Senior management Top management Evolution path

commitment commitment Timeframe
Creating of multi- Change in corporate Organizational redesign
disciplinary team culture System architecture
Objective definition Significant customer data Change management
Interdepartmental Clearly defined CRM Top management support
Integration processes
Communicate the CRM Sufficient resources
strategy to staff Understanding of customer
Staff commitment behavior
Customer information Extensive IT support
management
Customer service
Sales automation
Marketing automation
Support for operational
 management
Customer contact
management
Information systems
integration

Pan et al (2007) Da Silva and Rahimi (2007) Chalmeta (2005)

Evolution path CRM philosophy Awareness among

Timeframe Project mission management
Organizational redesign Top management Defining vision and
Reorganization commitment objectives
Minimize customization Project schedule and plan Creation of committee
Time and budget Client consultation Official appointment of
management Connectivity coordinates
Customer involvement Skilful personnel Development and approval
No culture conflict Technical tasks of the project plan
Use of the CRM system Client acceptance Monitoring to control time
managers Monitoring and feedback slippage
Management involvement Communication Prevent resistance to
Troubleshooting change
BPS and software Motivate staff
configuration Measure the degree of
participation & assess
results
King and Burgees (2007) Roh et al (2005) Chen and Chen (2004)

Top management support Process fit Champion process fit

Communicate CRM Customer information leadership and internal
strategy quality marketing
KM capabilities System support BusinessIT alignment
Willingness to share data Efficiency System integration
Willingness to change Customer satisfaction KM
process Profitability Culture /structure change
Technological readiness
Cultural change / customer
orientation
Process change
capabilities
System integration
capabilities

Siebel (2004) Croteau and Li (2003) Goodhue et al (2002)

Clear communication of Top management support Top management support

 strategy Technological readiness Vision
Back-office integration KM capabilities Willingness to change
Software customization process
Willingness to share data

Wilson et al (2002) Eid (2007) Mankoff (2001)

Gain champ Top management support Establish measurable

Ensure market orientation Organizational culture business goals
Define approval Developing a clear CRM Align business and IT
procedures which allow strategy operations
for uncertainty Clear project vision/scope Get executive support up
Gain board awareness of Benchmarking front
strategic potential of IT Employees acceptance Let business goals drive
Identify need for business CRM software selection functionality
system Convergence Integration with other Minimize customization
Organize around customer systems by leveraging out-of the-
Address culture change Training box functionality
Involve users in system Realistic CRM Use trained, experienced
design implementation consultants
Manage IT infrastructure Schedule Actively involve end users
Leverage models of best Enterprise performance in Solution design
practice metrics for Invest in training to
Rapid strategy / action CRM empower end users
loop to experiment Personalization Use a phased rollout
Prototype new processes Customer Orientation schedule
Manage for delivery of Data mining Measure, monitor, and
benefits track
Design for flexibility

Source: Adapted from Almotairi (2009).

Businesses face the challenge of creating an outstanding customer experience to drive brand
awareness, secure customer loyalty and ultimately increase profits. In a brief history of customer
experience, Pine and Gilmore (1999) claimed that experiences are the new economic offerings.
As a consequence of the emergence of customer experience concept, limited contributions from
scholars focusing on customer experience were made (Schmitt, 1999; Forlizzi and Ford, 2000;
Addis and Holbrook, 2001; Smith and Wheeler, 2002; Milligan and Smith, 2002; Caru` and
Cova, 2003; LaSalle and Britton, 2003; Schmitt, 2003; Prahalad and Ramaswamy, 2004; Shaw
and Ivens, 2005; Ponsonby-Mccabe and Boyle, 2006). Incidentally, the quality of the service
(service quality) can also be defined from these two perspectives; operational service quality and
customer perceived quality. Operational service quality is the operations assessment of how
well the service was delivered to its specification (as defined in operational procedures, training
manuals etc, see Pinto and Johnston 2004). Customer perceived quality is the customers
judgement of the quality of the service; their experience and the perceived benefits (compared to
their needs and expectations). The operational service quality and perceived service quality can
be assessed in terms of the quality factors or dimensions of service quality (attributes and
variables) (such as reliability, empathy, responsiveness, etc, see for example Parasuraman et al.
1985). The operation uses its input resources, such as labour, materials, information,
technologies, equipment, and customers (or something belonging to them), to design, create and
enact the service together with the customer (the service process). (This is sometimes referred to
as the transformation process, Slack et al. 2010 or resource integration, Lusch et al. 2007). From
the operations point of view, services are those processes (activities) which are created and
enacted by organisations into which the customer provides an input and takes some part (from
limited to significant) in the service process itself. Services are therefore co-created or co-
produced along with the customer (Brudney and England 1983, Eiglier and Langeard 1987).
Value is created for the organisation from the sale of the service for which the customer or some
other agency pays (value-in-exchange, Lusch et al. 2007). From a customers point of view
(sometimes referred to as the service-dominant logic perspective, Lusch et al. 2007) value is
created for the customer in the service received; their experience of it (value-in-use, Lusch et al.
2007) and the outcomes of the service including the benefits they get from it (Carbone 2004,
Edvardsson and Olsson 1996). While a service is the process or activity, the customers
experience is their personal interpretation of the service process and their interaction and
involvement with it during their journey or flow through a series of touch points, and how those
things make the customers feel (Csikszentmihalyi 2000, Ding et al. 2010, Johnston and Clark
2008, Meyer2007, Pullman and Gross 2004, Shaw and Ivens 2002). The experience (and value,
Vargo and Lusch 2004) is perceived purely from the point of view of an individual customer and
is inherently personal, existing only in the customers mind. Thus, no two people can have the
same experience (Pine and Gilmore 1998).
4. Proposed Framework for Customer Relationship Experience

5. Proposed Critical Factors for Customer Relationship Experience

6. Proposed Customer Relationship Experience Quadrant
7. Proposed Customer Relationship Experience Cycle
The literature on Customer Experience (CE) in a marketing context has a long history but no
unifying or widely accepted theory or typology has emerged. Various definitions of CE are ound
(e.g., Edvardsson, Enquist and Johnston, 2005) with the common denominator that CE is holistic
in nature (Verhoef et al., 2009) and that it has a process as well as an outcome component
(Johnston and Clark, 2008).A customers experience is here defined as is the customer's
assessment of all attributes of their direct and indirect dealings with an organization that
explains important marketing outcomes, such as purchasing behaviour, loyalty, and word-of-
mouth (Klaus and Maklan, 2011). The traditional marketing concept of determining the needs
and wants of target markets and delivering on these needs and wants with products and services
is the foundation to any companys marketing program (Kotler, 2003, p. 29). In addition, the
traditional marketing paradigm also includes the importance of communicating the products
features, benefits and value to prospective and current customers. Furthermore, traditional
marketing assumes rationality among customers who select products and services based on their
overall utility (Schmitt, 1999, p. 13). the concept of experiential marketing and/or marketing
experiences as opposed to marketing solely a products features and benefits has also emerged as
a communication strategy within this Age of Experience and has ignited increased emotional
and impulse driven purchases centered on a desired experience rather than just consumer
rationality (Schmitt, 1999, p. 22). In addition, the experience concept has also redefined branding
to more than just an identifier with logos, slogans, awareness and image to that of an experience
provider (Schmitt, 1999, p. 31).

8. Discussion and Conclusion

With the current level of interest in CE, it is important that managers have a clear strategy for its
development if they are to profit from their programmes. Marketing managers should learn from
previous investments (e.g. CRM), where a lack of clearly articulated strategy, calibration of
ambition, and development of necessary dynamic capabilities created a very high level of failure,
at least initially (e.g. Maklan et al., 2011). Implementing CE is challenging because of its
broadreaching definition potentially covering a very extended time frame, every customer touch-
point, and emotional as well as functional results. Unless firms have a clear scope for their
programmes and articulate an achievable development plan for building their dynamic
capabilities, there is every chance that managers will repeat the mistakes of previous process-led
change management in marketing (Boulding et al., 2005).For decades, service managers have
strived to develop long term relationships with their customers and provide good service to
delight their customers with the ultimate goal of sustaining brand loyalty. Unfortunately, in this
new market place, good service is taken for granted but is still expected. Good service also is no
longer sufficient as an effective differentiator for companies to remain competitive (MacMillan
and McGrath, 1997; Prahalad and Ramaswamy, 2004; Berry et al., 2002; Schembri, 2006). This
void leaves managers and researchers alike with insufficient information to answer the question
of what truly drive brand loyalty. In an effort to answer this question, it is claimed that customer
experience affects loyalty behaviours (Barsky and Nash, 2002; Berry et al., 2002). As a
consequence, the interest in customer experience has increased at a phenomenal rate. However,
so far, limited empirical research to capture the true meaning of the concept has been carried out
in this area (e.g.; Arnould and Price, 1993; Jones, 1999; Barsky and Nash, 2002; Gentile et al.,
2007) and most of the research in this area of study is mainly conceptual (MacMillan and
McGrath, 1997; Berry et al., 2002). The benefits the customer gets from using and experiencing
the service includes how they perceive they have profited or gained from the service provided
and their experience of it, i.e. how well their requirements and needs have been met. Another
outcome of the service from a customer's point of view will be their conscious or unconscious
assessment of the service provided (Zomerdijk and Voss 2010), the perceived value of the
service received (Bitner and Hubbert 1994, Oliver 1997) and their overall satisfaction or
dissatisfaction (an emotion) (Carbone 2004). There is an enormous range of services available
from a vast range of organisations, including business-to-business, business-to-consumer, the
public sector and voluntary organisations. It is therefore perhaps not surprising that there appears
to be no single, agreed and comprehensive definition of what a 'service' is (Haywood-Farmer and
Nollet 1991, Sampson and Froehle 2006). Services are sometimes defined as something
intangible (see for example Gummesson 1987), however many services also include some
tangible elements (Johnston and Bryan 1993). While there is as yet no agreed definition of
service there are the beginnings of an emerging consensus. A product is a thing whereas a
service is an activity - a process - which involves the treatment of a customer (or user) or
something belonging to them, where the customer performs some role in the productive activity,
i.e. the steps in the service process (Wild 1977, Sampson 2005, Sampson and Froehle 2006).
Defined as such, service is much more than the point of staff-customer interaction, sometimes
referred to as customer contact (Chase 1981) or the moment of truth (Normann 2000). Several
authors (see for example Pine and Gilmore 1998 and 1999, Shaw and Ivens 2002, Voss 2003,
Prahalad and Ramaswamy 2004, Meyer and Schwager 2007), have made the point that the
customer experience may provide a new means of competition. Providing a good experience is
also important because it affects customer satisfaction (Liljander and Strandvik 1997), delivers
customer loyalty (Yu and Dean 2001, Pullman and Gross 2004, Mascarenhas et al. 2006),
influences expectations (Johnson and Mathews 1997, Flanagan et al. 2005), instils confidence
(Flanagan et al. 2005), supports the brand (Grace and OCass 2004 Berry and Carbone 2007)
and also creates emotional bonds with customers or, conversely, leads to emotional scarring
(Pullman and Gross 2004). Good customer relationship management means presenting a single
image of the company across all the many channels a customer may use to interact with the firm,
and keep a single image of the customer that is shared across the enterprise (Berry and Linoff
2000, p.14).Although the potential value of CRM technologies is gargantuan, organisations have
had difficulties to reap out all the possibilities. One reason is that CRM systems require
significant changes to existing practices and potentially a significant amount of process
development required. For example, organisations need to think through what constitutes a CRM
systems and ensuring alignment with the culture and the environment they operate in. Second,
supporting defined processes within a CRM system is often not as straightforward as it might
appear and may require a reasonable amount of customisation. In other words, CRM technology
will not provide all the benefits on its own. The right strategies and supporting processes need to
be developed, and existing systems need to be tuned or re-engineered to support them. While this
is not as the saying goes rocket science, it can be sufficiently involved to discourage the more
casual user of CRM technology (Boarman, 2011).Existing practices of CRM associate it with
electronic services (e-services) and electronic government (e-government) (Pan et al, 2006;
Richter et al, 2004). E-service refers to any service provided by any electronic means (e.g.
Internet/website, mobile devices or kiosk). According to Grnlund (2005), e-service is a core
component in e-government domain because it bridges the gap between the government
administrators and citizens. shows e-service as one of the main actors in the e-government
domain; arrows indicate influence, circles indicate domains of control, and intersection of
circles indicates transactions zones. In a democratic government system, the triangular relations
are vital where service delivery is one of the main interactions between public servants
(administration) and citizens and businesses (civil society). As such, there is a government
attempt to create service-oriented architectures (SOA) and develop a single window platform
through which public services are provided on a 24/7 basis to allow citizens electronically
interact and transact with government agencies (Al-Khouri, 2012). A 2005 Bain Consulting
study revealed that 81% of senior leaders in 362 surveyed firms believed their organisation
delivered superior customer service, yet only 8% of their customers agreed (Allen et al, 2005).
In practice, CRM requires efficient, integrated business systems, as it imposes an organisational-
wide discipline to develop a single image of the customer shared across the enterprise. Main
categories of benefits from CRM-based work systems touches multiple performance dimensions
akin to operational, managerial, strategic, infrastructure, and organisational (Davenport et al,
2002; Shang and Seddon, 2002). Examples of these benefits include: improved customer-facing
processes, improved management decisions, improved customer service, and increased
development opportunities (Freeman and Seddon, 2005). Other benefits include: increased
productivity from headcount reductions and other process efficiencies; integration of processes,
data and technology; consistency and standardisation of processes and information; business
measurement and reporting; personalised and responsive service to customers and increased
sales activities (Freeman and Seddon, 2005). CRM is about the business processes that support
and enable the interaction between a business and its customers. All business processes that
involve both direct and indirect interaction with customers should be analysed and assessed
(Mendoza et al, 2007). Third, there are the technology and management dimensions. The
technology part refers to computing capabilities that allow organisations to improve their
capabilities of understanding customer behaviour, develop predictive models, build effective
communications with customers, and respond to those customers with real-time, accurate
information (Chen and Popovich, 2003). Dowling (2002) suggests that CRM had its origins in
two unrelated places: One is in the United States, where it was driven by technology in
connection with customer-based technology solutions; the other is in Scandinavia and Northern
Europe to support business-to-business marketing in connection with the Industrial Marketing
and Purchasing (IMP) Group that has been instrumental in developing knowledge about the
nature and effects of building long-term, trust-based relationships with customers. The concept
of CRM evolved because it places emphasis on understanding customer needs and then solving
problems or delivering benefits that create demonstrable customer value (Dowling, 2002). The
role of information technology is important in this style of CRM, as it is designed to support
rather than drive the customer relationship. The types of relationship that develop here are
often deep and meaningful, both for the firm and the people involved (Dowling, 2002). All in all,
CRM has developed into an area of undeniable significance in less than two decades (Frow and
Payne, 2009). According to a recent IDC report, the CRM industry revenues exceeded US$19
billion in 2011 (IDC, 2012). The huge scale and scope of the inter- and intra-organisational
changes involved in CRM led Kotorov (2003) to assert that CRM was the third most significant
revolution in the organisation of business after the invention of the factory in 1718 and the
introduction of the assembly line into factory production in 1913. However, despite these
benefits, the limited amount of research in this area suggests that good customer experiences are
not prevalent. For example, a recent survey by Bain & Co. of 362 companies, across several
industries and their customers, found that 80 per cent of the senior executives interviewed said
they provided a superior customer experience, but just eight per cent of their customers agreed
(Coffman and Stotz 2007). Experiencing a service results in the customer feeling emotions
(powerful, subjective feelings and associated physiological states, Purves et al. 2001), of which
there are many hundreds. The main ones being happiness, surprise, love, fear, anger, shame and
sadness, and those feelings may range from, for example, discomfort to depression or warm to
intimate or at ease to ecstatic (see for example Goleman 1996). The outcomes outlined above are
from a customer perspective. There are also important outcomes from the organisations
perspective. Organisational outcomes will be concerned with meeting operational and strategic
objectives and financial targets for example (Johnston and Clark 2008).

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