CRM Ebook

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{\phpg\posx9181\pvpg\posy746\absw1279\absh195 \f20 \fs21 \cf0 \f20 \fs21 \cf0
2005:03 PB \par
}
MASTER'S THESIS \par
}
{\phpg\posx2311\pvpg\posy3538\absw9397\absh2128 \f50 \fs64 \cf0 \fi611 \f50
\fs64 \cf0 Objectives, Strategies and
\par}{\phpg\posx2311\pvpg\posy3538\absw9397\absh2128 \sl-840 \f50 \fs64 \cf0
Expected Bene#ts of Customer
\par}{\phpg\posx2311\pvpg\posy3538\absw9397\absh2128 \sl-840 \f50 \fs64 \cf0 \fi530
Relationship Management \par
}
PATRICK AMOFAH
AMER IJAZ \par
}
Social Science and Business Administration Programmes
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Administration}{\fs18 \cf0 and}{\fs18 \cf0 Social}{\fs18 \cf0 Sciences }
\fi1317 {\fs18 \cf0 Division}{\fs18 \cf0 of}{\fs18 \cf0 Industrial}{\fs18 \cf0
Marketing}{\fs18 \cf0 and}{\fs18 \cf0 e-Commerce }
\par}{\phpg\posx2628\pvpg\posy12811\absw6848\absh1679 \sl-264 \par\f20 \fs25
\cf76 \fi1700 {\b \fs21 M.Sc.}{\b \fs21 in}{\b \fs21 Electronic}{\b \fs21
Commerce }
\fi1687 {\b \fs21 CONTINUATION}{\b \fs21 COURSES }
\fi2132 {\fs18 \cf0 Supervisor:}{\fs18 \cf0 Rikard}{\fs18 \cf0 Wahlberg }\par
}
2005:03 PB ISSN: 1653 - 0187 ISRN: LTU - PB - EX - - 05/3 - - SE \par
}
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}}\par}{\phpg\posx1800\pvpg\posy1586\absw8820\absh4515 \b \f10 \fs21 \cf0 \b
\f10 \fs21 \cf0 Abstract
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personalization}{\b0 are}{\b0 the}{\b0 main}{\b0 strategies }
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indicate }
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customer}{\b0 retention}{\b0 and}{\b0 loyalty}{\b0 and }
{\b0 positive}{\b0 impact}{\b0 on}{\b0 the}{\b0 over}{\b0 all}{\b0
performance}{\b0 of}{\b0 the}{\b0 organization}{\b0 in}{\b0 the}{\b0 long}
{\b0 run. }\par
}
{\phpg\posx1800\pvpg\posy7439\absw8777\absh489 \f10 \fs21 \cf0 \f10 \fs21 \cf0 Key
words: objectives, strategies, benefits, customer, relationship, and
management \par
}
{\phpg\posx10359\pvpg\posy14852\absw91\absh239 \f20 \fs21 \cf0 \f20 \fs21 \cf0 I
\par
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\f10 \fs21 \cf0 Acknowledgemen{\b0 t }
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God}{\b0 for}{\b0 seeing}{\b0 us}{\b0 through}{\b0 all}{\b0 our}{\b0
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{\phpg\posx1800\pvpg\posy9171\absw6010\absh201 \i \f10 \fs18 \cf0 \i \f10 \fs18
\cf0 Lulea University of Technology, Lulea, Sweden, March 09,2005. \par
}
{\phpg\posx1800\pvpg\posy10331\absw1776\absh241 \b \f10 \fs21 \cf0 \b \f10 \fs21
\cf0 Patrick Amofah \par
}
\cf0 Amer Ijaz \par
}
II \par
}
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\fs23 \cf0 Table of{\fs21 Content }\par
}
1.1Background and problem discussion
1.2CRM and eCRM defined
\par}{\phpg\posx1800\pvpg\posy3134\absw6482\absh10424 \sl-275 \f10 \fs21 \cf0 1.3
Problem discussion
Delimitation
Overall research purpose
Disposition of the study
\par}{\phpg\posx1800\pvpg\posy3134\absw6482\absh10424 \sl-275 \par\f10 \fs21 \cf0 2
Literature Review
2.1Strategies and Objectives of Objectives of CRM initiatives
Benefits of CRM initiatives
Summary of literature review
2.4 Research Questions
Conceptual framework
Conceptualisation
Objectives and strategies of CRM initiatives
\par}{\phpg\posx1800\pvpg\posy3134\absw6482\absh10424 \sl-275 \f10 \fs21 \cf0 3.2.1
Customer identification
Customer differentiation
Customer interaction
Personalisation
Benefits of CRM
Revenue and profit enhancement
Cost savings and reduction
\par}{\phpg\posx1800\pvpg\posy3134\absw6482\absh10424 \sl-275 \f10 \fs21 \cf0 3..3
Organisational impact
Emerged frame of reference
Research Methodology
\par}{\phpg\posx1800\pvpg\posy3134\absw6482\absh10424 \sl-275 \f10 \fs21 \cf0 4.1.
Introduction
Research strategy
Selection of cases
Data collection
Data analysis
Quality standards
Reliability
Validity
\cf0 \fi67 5 Empirical Data presentation
5.1 Nordea bank
5.1.1 CRM at Nordea
5.1.2 Objectives and strategies of CRM at Nordea Bank
5.1.3 Expected benefits of CRM at Nordea
5.2 Handelsbanken \par
}
{\phpg\posx9718\pvpg\posy3134\absw319\absh10424 \f10 \fs21 \cf0 \f10 \fs21 \cf0 1
\par}{\phpg\posx9718\pvpg\posy3134\absw319\absh10424 \sl-275 \f10 \fs21 \cf0 2


\par
}
{\phpg\posx10200\pvpg\posy14852\absw256\absh239 \f20 \fs21 \cf0 \f20 \fs21 \cf0 III
\par
}
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}}\par}{\phpg\posx1800\pvpg\posy1444\absw7646\absh9430 \f10 \fs21 \cf0 \fi67
\f10 \fs21 \cf0 5.2.1 CRM at Handlesbanken
5.2.2 Objectives and strategies of CRM at Handelsbanken
5.2.3 Benefits of CRM at Handelsbanken
5.3 F�reningsSparbanken
5.3.1 CRM at F�reningsSparbanken
5.3.2 Objectives and strategies of CRM at F�reningsSparbanken
5.3.3 Benefits of CRM at F�reningsSparbanken
\par}{\phpg\posx1800\pvpg\posy1444\absw7646\absh9430 \sl-275 \par\f10 \fs21 \cf0
\fi67 6 Data analysis
6.1 Nordea bank
6.1.1 Objectives and strategies of CRM at Nordea bank
6.1.2 Benefits of CRM at Nordea bank
6.2 Handelsbanken
6.2.1 Objectives and strategies of CRM at Handelsbanken
6.2.2 Benefits of CRM at Handelsbanken
6.3 F�reningsSparbanken
6.3.1 Strategies and objectives of CRM at F�reningsSparbanken
6.3.2 Benefits of CRM at F�reningsSparbanken
6.4 Cross Case Analysis
6.4.1 Objectives and strategies of CRM initiatives
6.4.1 Benefits of CRM initiatives
\fi67 7 Conclusions, Implications and Recommendations
7.1 Conclusions
7.2 Implications and recommendations for managers and practitioners
7.3 Implications for theory
7.4 Implications for future research
References
Appendix-Interview Guide
\par}{\phpg\posx1800\pvpg\posy1444\absw7646\absh9430 \sl-275 \f10 \fs21 \cf0 Tables
and figures
1.1Operational definition of Variables
Benefits of CRM projects
Benefits derived from CRM/Ecrm
Frame of reference
Frame of reference
Situation for different Research Strategies \par
}
54 \par
}
\par
}
IV \par
}
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010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
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0028a28a0028a28a0028a28a0028a28a0028a28
}}\par}{\phpg\posx2918\pvpg\posy710\absw6067\absh159 \i \f20 \fs14 \cf0 \i \f20
\fs14 \cf0 {\ul A}{\ul m}{\ul o}{\ul f}{\ul a}{\ul h}{\ul }{\ul &}{\ul }{\ul I}
{\ul j}{\ul a}{\ul z}{\ul }{\ul 2}{\ul 0}{\ul 0}{\ul 5}{\ul :}{\ul }{\ul O}{\ul
b}{\ul j}{\ul e}{\ul c}{\ul t}{\ul i}{\ul v}{\ul e}{\ul s}{\ul ,}{\ul }{\ul s}{\ul
t}{\ul r}{\ul a}{\ul t}{\ul e}{\ul g}{\ul i}{\ul e}{\ul s}{\ul }{\ul &}{\ul }{\ul
b}{\ul e}{\ul n}{\ul e}{\ul f}{\ul i}{\ul t}{\ul s}{\ul }{\ul o}{\ul f}{\ul }{\ul
C}{\ul R}{\ul M}{\ul }{\ul i}{\ul n}{\ul i}{\ul t}{\ul i}{\ul a}{\ul t}{\ul i}{\ul
v}{\ul e}{\ul s}{\ul }{\ul i}{\ul n}{\ul }{\ul s}{\ul e}{\ul r}{\ul v}{\ul i}{\ul
c}{\ul e}{\ul }{\ul c}{\ul o}{\ul m}{\ul p}{\ul a}{\ul n}{\ul i}{\ul e}{\ul s}
\par
}
\cf0 Background and problem discussion
Introduction \par
}
{\phpg\posx1417\pvpg\posy2930\absw9441\absh11010 \i \f10 \fs21 \cf0 \i \f10
\fs21 \cf0 This introducing chapter will provide the reader with an insight to the
research area.
\par}{\phpg\posx1417\pvpg\posy2930\absw9441\absh11010 \sl-275 \i \f10 \fs21 \cf0 We
will begin by briefly discussing the background of Customer Relationship
\par}{\phpg\posx1417\pvpg\posy2930\absw9441\absh11010 \sl-275 \i \f10 \fs21 \cf0
Management, we move from a general perspective towards the focus on the specific
problem. The research problem of this study is introduced to give the
reader a
clearer picture of our field of study and also the over all research
purpose is
presented.
\par}{\phpg\posx1417\pvpg\posy2930\absw9441\absh11010 \sl-325 \par\i \f10 \fs21
\cf0 {\b\i0 1.1}{\b\i0 Background }
\cf0 \fi67 {\i0 While}{\i0 retaining}{\i0 customer}{\i0 loyalty}{\i0 has}{\i0
been}{\i0 a}{\i0 sales}{\i0 and}{\i0 marketing}{\i0 principle}{\i0 for}{\i0
quiet}{\i0 a }
{\i0 long}{\i0 time,}{\i0 Customer}{\i0 Relationship}{\i0 Management}{\i0
(CRM)}{\i0 is}{\i0 actually}{\i0 a}{\i0 tremendous}{\i0 step }
{\i0 forward}{\i0 in}{\i0 creating}{\i0 a}{\i0 system}{\i0 that}{\i0 can}{\i0
provide}{\i0 a}{\i0 means}{\i0 for}{\i0 retaining}{\i0 individual}{\i0
loyalty }
{\i0 in}{\i0 a}{\i0 world}{\i0 of}{\i0 about}{\i0 6}{\i0 billion}{\i0
population}{\i0 (Croteau}{\i0 &}{\i0 Li,}{\i0 2001).}{\i0 Greenberg}{\i0
(2001)}{\i0 stated }
{\i0 that}{\i0 in}{\i0 order}{\i0 to}{\i0 understand}{\i0 CRM,}{\i0 you}{\i0
must}{\i0 also}{\i0 understand}{\i0 the}{\i0 changing}{\i0 nature}{\i0 of }
{\i0 the}{\i0 customer}{\i0 because}{\i0 customers}{\i0 are}{\i0 not}{\i0
what}{\i0 they}{\i0 used}{\i0 to}{\i0 be.}{\i0 Khalifa}{\i0 and}{\i0
Liu }
{\i0 (2001)}{\i0 noted}{\i0 that,}{\i0 a}{\i0 survey}{\i0 of}{\i0 more}
{\i0 than}{\i0 1,600}{\i0 businesses}{\i0 and}{\i0 IT}{\i0
professionals }
{\i0 conducted}{\i0 by}{\i0 the}{\i0 Data}{\i0 Warehouse}{\i0 Institute,}
{\i0 found}{\i0 that,}{\i0 some}{\i0 of}{\i0 the}{\i0 respondents }
{\i0 have}{\i0 CRM}{\i0 project}{\i0 budgets}{\i0 of}{\i0 over}{\i0 $}{\i0
10}{\i0 million.}{\i0 This}{\i0 finding}{\i0 indicates}{\i0 that}{\i0 CRM}
{\i0 is }
{\i0 very}{\i0 important}{\i0 for}{\i0 organisations.}{\i0 The}{\i0 Cap}
{\i0 Gemini}{\i0 further}{\i0 added}{\i0 that,}{\i0 the}{\i0 average }
{\i0 total}{\i0 investment}{\i0 in}{\i0 CRM}{\i0 of}{\i0 300}{\i0 U.S}{\i0
and}{\i0 European}{\i0 companies}{\i0 was}{\i0 $}{\i0 3.1}{\i0 million.}{\i0
More }
{\i0 than}{\i0 69%}{\i0 of}{\i0 the}{\i0 companies}{\i0 surveyed}{\i0 spent}
{\i0 less}{\i0 than}{\i0 $}{\i0 5}{\i0 million}{\i0 and}{\i0 more}{\i0
than}{\i0 13% }
{\i0 of}{\i0 the}{\i0 companies}{\i0 spent}{\i0 over}{\i0 $10}{\i0 million}
{\i0 (Sterne,}{\i0 2000).}{\i0 This}{\i0 finding}{\i0 also}{\i0 indicates }
{\i0 that}{\i0 a}{\i0 great}{\i0 number}{\i0 of}{\i0 companies}{\i0 spend}
{\i0 great}{\i0 amount}{\i0 of}{\i0 their}{\i0 budget}{\i0 on}{\i0 CRM}{\i0
and }
{\i0 therefore}{\i0 in}{\i0 our}{\i0 opinion}{\i0 we}{\i0 believe}{\i0 that}
{\i0 it}{\i0 is}{\i0 important}{\i0 for}{\i0 service}{\i0 companies}{\i0 to}
{\i0 know }
{\i0 the}{\i0 objectives}{\i0 of}{\i0 their}{\i0 CRM}{\i0 initiatives}{\i0
and}{\i0 the}{\i0 type}{\i0 of}{\i0 benefits}{\i0 these}{\i0 organisations }
{\i0 intend}{\i0 to}{\i0 derive}{\i0 from}{\i0 them.}{\i0 A}{\i0
survey}{\i0 of}{\i0 300}{\i0 companies}{\i0 conducted}{\i0 at}{\i0 a}
{\i0 CRM }
{\i0 conference}{\i0 concluded}{\i0 that}{\i0 CRM}{\i0 is}{\i0 not}{\i0 a}
{\i0 cheap,}{\i0 easy,}{\i0 or}{\i0 fast}{\i0 solution}{\i0 (ibid).}{\i0
Mooney }
{\i0 (2000)}{\i0 further}{\i0 added}{\i0 that,}{\i0 more}{\i0 than}{\i0
two-thirds}{\i0 of}{\i0 CRM}{\i0 projects}{\i0 end}{\i0 up}{\i0 in}{\i0
failure. }
{\i0 However,}{\i0 he}{\i0 went}{\i0 further}{\i0 to}{\i0 say}{\i0
that,}{\i0 the}{\i0 successful}{\i0 third}{\i0 could}{\i0 obtain}{\i0
up}{\i0 to}{\i0 75% }
{\i0 return}{\i0 on}{\i0 investment}{\i0 (ibid). }
\cf0 \fi67 {\i0 Thompson}{\i0 (2004)}{\i0 found}{\i0 four}{\i0 broad}{\i0
factors}{\i0 that}{\i0 were}{\i0 driving}{\i0 72%}{\i0 of}{\i0 the}{\i0
return}{\i0 on }
{\i0 investment}{\i0 (ROI)}{\i0 of}{\i0 CRM.}{\i0 They}{\i0 were:}{\i0
Customer-centric}{\i0 strategy,}{\i0 frontline}{\i0 training }
{\i0 and}{\i0 support,}{\i0 organization}{\i0 change,}{\i0 and}{\i0
appropriate}{\i0 use}{\i0 of}{\i0 metrics.}{\i0 These}{\i0 findings }
{\i0 again}{\i0 support}{\i0 the}{\i0 fact}{\i0 that}{\i0 the}{\i0 actual}
{\i0 objectives}{\i0 of}{\i0 CRM}{\i0 initiatives}{\i0 and}{\i0 the}{\i0
benefits }
{\i0 should}{\i0 be}{\i0 ascertained.}{\i0 This}{\i0 further}{\i0
support}{\i0 the}{\i0 statement}{\i0 by}{\i0 Balaji}{\i0 and}{\i0
Alexander }
{\i0 (2003)}{\i0 that}{\i0 the}{\i0 purpose}{\i0 of}{\i0 CRM}{\i0 is}
{\i0 to}{\i0 identify,}{\i0 acquire,}{\i0 serve}{\i0 and}{\i0 retain}
{\i0 profitable }
{\i0 customers}{\i0 by}{\i0 interacting}{\i0 with}{\i0 them}{\i0 in}{\i0
an}{\i0 integrated}{\i0 way}{\i0 across}{\i0 a}{\i0 range}{\i0 of }
{\i0 communication}{\i0 channels.}{\i0 Swift}{\i0 (2001}{\i0 pp.26)}{\i0
also}{\i0 describes}{\i0 analytical}{\i0 eCRM}{\i0 as}{\i0 a }
{\i0 four-step}{\i0 interactive}{\i0 process}{\i0 consisting}{\i0 of}{\i0
collecting}{\i0 and}{\i0 integrating}{\i0 online}{\i0 customer }
{\i0 data,}{\i0 analyzing}{\i0 this}{\i0 data,}{\i0 building}{\i0
interactions}{\i0 with}{\i0 customers}{\i0 based}{\i0 on}{\i0 this}{\i0 data}
{\i0 are }
{\i0 optimized,}{\i0 and}{\i0 measuring}{\i0 the}{\i0 effectiveness}{\i0
of}{\i0 these}{\i0 interactions}{\i0 in}{\i0 terms}{\i0 of}{\i0 these }
{\i0 performance.}{\i0 According}{\i0 to}{\i0 Thompson}{\i0 (2004)}{\i0 CRM}
{\i0 is}{\i0 a}{\i0 business}{\i0 strategy}{\i0 to}{\i0 acquire, }
{\i0 grow}{\i0 and}{\i0 retain}{\i0 profitable}{\i0 customer}{\i0
relationships,}{\i0 with}{\i0 the}{\i0 goal}{\i0 of}{\i0 creating}{\i0
a }\par
}
1 \par
}
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010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
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0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
sustainable competitive advantage. He goes on to say that, product/price-
based
differentiation is waning because of four broad trends: maturing markets,
global
\par}{\phpg\posx1417\pvpg\posy1421\absw9248\absh2476 \sl-275 \f10 \fs21 \cf0 trade,
efficient manufacturing and the Internet. Thompson (2004) again stated that,
\par}{\phpg\posx1417\pvpg\posy1421\absw9248\absh2476 \sl-275 \f10 \fs21 \cf0 now
CRM is emerging as a critical strategy simply because relationships are coming
\par}{\phpg\posx1417\pvpg\posy1421\absw9248\absh2476 \sl-275 \f10 \fs21 \cf0 to the
forefront of the competitive battleground. He further supported this by saying
\par}{\phpg\posx1417\pvpg\posy1421\absw9248\absh2476 \sl-275 \f10 \fs21 \cf0 that,
CRM should mean creating mutual wins for customers and all the company
stakeholders, including employees and business partners. (ibid). This in our
opinion
supports the fact that CRM is very important and therefore all efforts should be
made
\par}{\phpg\posx1417\pvpg\posy1421\absw9248\absh2476 \sl-275 \f10 \fs21 \cf0 to
know the objectives of CRM initiatives and the intended benefits of the
CRM
initiatives by these organizations. \par
}
\cf0 1.2 CRM and eCRM Defined: \par
}
{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \f10 \fs21 \cf0 \fi67 \f10 \fs21
\cf0 According to Wilson (2002) CRM is a concept that enables an organization to
tailor
specific products or services to each individual customer according to
his or her
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-275 \f10 \fs21 \cf0 need.
In the most advanced scenario, CRM may be used to create a personalized,
customized, one-to-one experience that will give the individual customer a sense of
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-275 \f10 \fs21 \cf0 being

cared for, thus opening up new marketing opportunities based on the
preferences, previous behavior and history of the customer (ibid). Fayerman (2002)
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-275 \f10 \fs21 \cf0 said
that CRM as a customer-focused business strategy that aims to increase
customer satisfaction and customer loyalty by offering a more responsive
and
customized services to each customer. Wilson (2002) again indicated that
CRM
technology initiatives are most commonly implemented in functional areas such as

customer support and service, sales and marketing to optimize
profitability and
revenue. However there is no universal explanation of what CRM is, since the area
is
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-275 \f10 \fs21 \cf0 fairly
new and still under development (ibid). In our opinion, it is important to know
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-275 \f10 \fs21 \cf0 that
numerous attempts to defining CRM exist and that many organizations adapt the
definition to their own business and unique needs. The following are two examples
of
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-275 \f10 \fs21 \cf0 how
CRM is defined. CRM is an infrastructure that enables the delineation of
and
increase in customer value, and the correct means by which to motivate
valuable
customers to remain loyal-indeed, to buy again (Dyche, 2001p.4) CRM is
an
enterprise-wide mindset, mantra, and set of business processes and policies that
are
designed to acquire, retain and service customers. CRM is not a technology, though.

Technology is a CRM enabler (Greenberg 2001). We have decided to use
the
definition stated by Bose and Suganmaran (2003) as the foundation and as such a
general view of CRM for this study. This is because we think that this definition
is the
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-275 \f10 \fs21 \cf0 most
extensive one, the most recent one and that it makes no mention of any

particular means of communication, or channels, whether traditional or new.
CRM is about managing customer knowledge to better understand and serve them. It
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-275 \f10 \fs21 \cf0 is an
umbrella concept that places the customer at the center of an
organization.
Customer service is an important component of CRM, however, CRM is also
concerned with coordinating customer relations across all business functions,
points
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-275 \f10 \fs21 \cf0 of
interaction, and audiences (Bose and Sugamaran, 2003, p.4)
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-335 \par\f10 \fs21 \cf0 A
new term for taking care of customers via the Internet, eCRM, is recently applied
\par}{\phpg\posx1417\pvpg\posy5547\absw9311\absh8653 \sl-275 \f10 \fs21 \cf0 by
some organizational and academic communities (Ragins & Greco, 2003).{\i eCRM }\par
}
2 \par
}
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1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
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5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
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0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
{\phpg\posx1417\pvpg\posy1423\absw9523\absh12410 \i \f10 \fs21 \cf0 \i \f10
\fs21 \cf0 refers to electronic customer relationship management or, more simply,
CRM that is
Web-based{\i0 (Dyche,2001).} eCRM{\i0 can}{\i0 also}{\i0 be}{\i0 defined} "as
the use of the Internet and
\par}{\phpg\posx1417\pvpg\posy1423\absw9523\absh12410 \sl-275 \i \f10 \fs21 \cf0 IT
applications to manage customer relationships" (Chaffey D., 2002).{\i0 There}{\i0
is}{\i0 a}{\i0 lot }
{\i0 of}{\i0 debate}{\i0 over}{\i0 whether}{\i0 eCRM}{\i0 is}{\i0 a}{\i0
real}{\i0 designation}{\i0 or}{\i0 just}{\i0 a}{\i0 marketing}{\i0 ploy}{\i0
by}{\i0 CRM }
{\i0 organizations}{\i0 and}{\i0 academics}{\i0 trying}{\i0 to}{\i0
distinguish}{\i0 themselves}{\i0 in}{\i0 the}{\i0 rapidly }
{\i0 increasing}{\i0 morass}{\i0 of}{\i0 CRM}{\i0 pretenders}{\i0 (Greenberg,}
{\i0 2001).}{\i0 Again}{\i0 he}{\i0 went}{\i0 ahead}{\i0 to }
{\i0 say}{\i0 that,}{\i0 eCRM}{\i0 is}{\i0 CRM}{\i0 and}{\i0 CRM}{\i0 must}
{\i0 become}{\i0 eCRM}{\i0 (ibid). }
\cf0 {\i0 In}{\i0 the}{\i0 attempt}{\i0 to}{\i0 define}{\i0 the}{\i0 term}
{\i0 eCRM,}{\i0 most}{\i0 web-based}{\i0 authors}{\i0 use}{\i0 the}{\i0
term}{\i0 CRM }
{\i0 and}{\i0 eCRM}{\i0 interchangeably}{\i0 for}{\i0 example;}{\i0
Hewson}{\i0 Consulting}{\i0 Group}{\i0 defined}{\i0 it}{\i0 to }
{\i0 mean}{\i0 the}{\i0 same}{\i0 utilization}{\i0 of}{\i0 e-technology}{\i0
with}{\i0 regards}{\i0 to}{\i0 CRM.}{\i0 This}{\i0 may}{\i0 be}{\i0 due}{\i0
to }
{\i0 their}{\i0 interdependent}{\i0 nature}{\i0 and}{\i0 their}{\i0
business}{\i0 orientation.}{\i0 The}{\i0 academics}{\i0 may }
{\i0 however}{\i0 be}{\i0 criticized}{\i0 if}{\i0 the}{\i0 distinction}{\i0
is}{\i0 blurred}{\i0 or}{\i0 not}{\i0 clear.}{\i0 Pan}{\i0 and}{\i0 Lee,}
{\i0 (2003) }
{\i0 attempted}{\i0 to}{\i0 make}{\i0 a}{\i0 distinction}{\i0 between}
{\i0 the}{\i0 terms}{\i0 CRM}{\i0 and}{\i0 eCRM;}{\i0 CRM}{\i0 was }
{\i0 considered}{\i0 an}{\i0 approach}{\i0 or}{\i0 business}{\i0 strategy}{\i0
providing}{\i0 seamless}{\i0 integration}{\i0 of}{\i0 every }
{\i0 area}{\i0 of}{\i0 business}{\i0 that}{\i0 touches}{\i0 the}{\i0
customer-namely,}{\i0 marketing,}{\i0 sales,}{\i0 customer }
{\i0 service}{\i0 and}{\i0 field}{\i0 support-}{\i0 through}{\i0
integration}{\i0 of}{\i0 people,}{\i0 process,}{\i0 and}{\i0
technology. }
{\i0 eCRM}{\i0 on}{\i0 the}{\i0 other}{\i0 hand,}{\i0 taking}{\i0
advantage}{\i0 of}{\i0 the}{\i0 revolutionary}{\i0 impact}{\i0 of}{\i0
the }
{\i0 Internet,}{\i0 eCRM}{\i0 has}{\i0 thus}{\i0 broadened}{\i0 it}{\i0
and}{\i0 it}{\i0 now}{\i0 expands}{\i0 the}{\i0 traditional}{\i0 CRM }
{\i0 techniques}{\i0 by}{\i0 integrating}{\i0 technologies}{\i0 of}{\i0
new}{\i0 electronic}{\i0 channels,}{\i0 such}{\i0 as}{\i0 web, }
{\i0 wireless,}{\i0 and}{\i0 voice}{\i0 technologies,}{\i0 and}{\i0
combines}{\i0 them}{\i0 with}{\i0 e-business}{\i0 applications }
{\i0 into}{\i0 the}{\i0 overall}{\i0 enterprise}{\i0 CRM}{\i0 strategy.
(ibid).}{\i0 In}{\i0 this}{\i0 research,}{\i0 we}{\i0 use}{\i0 the}{\i0 CRM}
{\i0 as}{\i0 a }
{\i0 wider}{\i0 and}{\i0 the}{\i0 main}{\i0 term}{\i0 that}{\i0
includes}{\i0 eCRM}{\i0 as}{\i0 well}{\i0 as}{\i0 all}{\i0 other}{\i0
channels}{\i0 where }
{\i0 organizations}{\i0 and}{\i0 customers}{\i0 could}{\i0 possibly}{\i0
interact. }
\cf0 {\i0 According}{\i0 to}{\i0 Galbreath}{\i0 and}{\i0 Rogers}{\i0
(1999),}{\i0 CRM}{\i0 is}{\i0 relatively}{\i0 a}{\i0 new}{\i0
management }
{\i0 concept,}{\i0 a}{\i0 new}{\i0 approach}{\i0 to}{\i0 managing}{\i0
customers,}{\i0 currently}{\i0 sweeping}{\i0 through }
{\i0 business}{\i0 worldwide}{\i0 and}{\i0 its}{\i0 especially}{\i0
finding}{\i0 audience}{\i0 in}{\i0 the}{\i0 professional}{\i0 service }
{\i0 sector.}{\i0 Freeman}{\i0 2004}{\i0 noted}{\i0 that,}{\i0 services}{\i0
comprises}{\i0 of}{\i0 about}{\i0 80%}{\i0 of}{\i0 US}{\i0 economy }
{\i0 and}{\i0 above}{\i0 50%}{\i0 of}{\i0 every}{\i0 country's}{\i0 economy.}
{\i0 Again}{\i0 he}{\i0 further}{\i0 adds}{\i0 that,}{\i0 world}{\i0 trade }
{\i0 in}{\i0 services}{\i0 now}{\i0 approaches}{\i0 $}{\i0 1}{\i0
trillion}{\i0 per}{\i0 year}{\i0 and}{\i0 continue}{\i0 to}{\i0 grow}
{\i0 even}{\i0 more. }
{\i0 Canel,}{\i0 Rosen}{\i0 and}{\i0 Anderson}{\i0 (2000),}{\i0 stated}{\i0
that,}{\i0 the}{\i0 services}{\i0 industries}{\i0 in}{\i0 developed }
{\i0 countries}{\i0 have}{\i0 been}{\i0 continuously}{\i0 increasing.}{\i0
They}{\i0 went}{\i0 ahead}{\i0 to}{\i0 say}{\i0 that,}{\i0 in}{\i0 the}{\i0
US }
{\i0 alone,}{\i0 during}{\i0 the}{\i0 past}{\i0 15}{\i0 years,}{\i0 the}{\i0
non-goods-}{\i0 producing}{\i0 sector,}{\i0 that}{\i0 is}{\i0 the}{\i0
service }
{\i0 sector}{\i0 of}{\i0 non-}{\i0 agricultural}{\i0 labor}{\i0 force}{\i0
rose}{\i0 52%.}{\i0 This}{\i0 further}{\i0 makes}{\i0 it}{\i0 interesting}
{\i0 to }
{\i0 study}{\i0 the}{\i0 objectives}{\i0 of}{\i0 CRM}{\i0 initiatives}{\i0
and}{\i0 the}{\i0 type}{\i0 of}{\i0 benefits}{\i0 to}{\i0 service}{\i0
companies. }
{\i0 These}{\i0 interesting}{\i0 statistics}{\i0 also}{\i0 makes}{\i0 it}{\i0
very}{\i0 imperative}{\i0 for}{\i0 studies}{\i0 to}{\i0 be}{\i0 done}{\i0
in}{\i0 the }
{\i0 service}{\i0 sectors.}{\i0 Hence}{\i0 we}{\i0 position}{\i0 this}{\i0
study}{\i0 of}{\i0 CRM}{\i0 in}{\i0 the}{\i0 service}{\i0 sector.}{\i0
According }
{\i0 to}{\i0 Freeman}{\i0 (2004),}{\i0 services}{\i0 include,}{\i0 royalties}
{\i0 and}{\i0 fees,}{\i0 financial}{\i0 services,}{\i0 insurance }
{\i0 services,}{\i0 professional}{\i0 services}{\i0 of}{\i0 all}{\i0
kinds,}{\i0 construction}{\i0 services,}{\i0 electronic }
{\i0 commercial}{\i0 services,}{\i0 energy}{\i0 services,}{\i0 maritime}{\i0
services,}{\i0 retailing}{\i0 and}{\i0 wholesaling, }
{\i0 travel}{\i0 and}{\i0 tourism}{\i0 services,}{\i0 telecommunication}
{\i0 services,}{\i0 environmental}{\i0 services, }
{\i0 health}{\i0 care}{\i0 services,}{\i0 funeral}{\i0 services,}{\i0
education}{\i0 services,}{\i0 computer}{\i0 and}{\i0 data }
{\i0 processing}{\i0 services,}{\i0 and}{\i0 transportation}{\i0 services,}
{\i0 railroad}{\i0 services,}{\i0 audio}{\i0 visual }
{\i0 products,}{\i0 and}{\i0 many}{\i0 others.}{\i0 Canel,}{\i0 Rosen}
{\i0 and}{\i0 Anderson}{\i0 (2000)}{\i0 describe}{\i0 the }
{\i0 characteristics}{\i0 of}{\i0 service}{\i0 as}{\i0 the}{\i0
following,}{\i0 intangible,}{\i0 inseparable,}{\i0 perishable,}{\i0 and }
{\i0 heterogeneous.}{\i0 According}{\i0 to}{\i0 Canel,}{\i0 Rosen}{\i0 and}
{\i0 Anderson}{\i0 (2000),}{\i0 expanding}{\i0 global }
{\i0 competition,}{\i0 emerging}{\i0 new}{\i0 technologies,}{\i0 and}{\i0
the}{\i0 improved}{\i0 communications}{\i0 have }
{\i0 increased}{\i0 customers'}{\i0 expectations}{\i0 for}{\i0 full}{\i0
satisfied}{\i0 with}{\i0 products}{\i0 and}{\i0 services}{\i0 they }
{\i0 purchase}{\i0 with.}{\i0 They}{\i0 further}{\i0 added}{\i0 that}{\i0
many}{\i0 manufacturing}{\i0 and}{\i0 service}{\i0 companies }\par
}
3 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
have been challenged to increase their focus on customer satisfaction and quality
of
products and services. Canel, Rosen and Anderson (2000) argue that until recently,
services have been shattered from competition and have had little incentive to
drive
\par}{\phpg\posx1417\pvpg\posy1421\absw9395\absh12400 \sl-275 \f10 \fs21 \cf0 out
inefficiency. Again they noted that, shielded by regulation and confronted by few
foreign competitors, service companies have allowed their white-collar
payrolls to
become bloated, their investments in information technology to outstrip the
paybacks
\par}{\phpg\posx1417\pvpg\posy1421\absw9395\absh12400 \sl-275 \f10 \fs21 \cf0 and
their productivity to stagnate. This further in our opinion
vindicates the
importance of this study to be made in the service sector.
{\b 1.3}{\b Problem}{\b discussion }
\cf0 \fi67 Khalifa and Liu (2003) stated that, in the last few years, we
have witnessed a
substantial growth of Internet-based services, both from Internet businesses and
from
traditional companies that are developing online services as an important customer
relationship management (CRM) strategy and initiative. Canel, Rosen and Anderson
(2000) argue that, we are now in the service economy. According to
Goldfinger
(2004) in the last five years, large-scale deployment of the Internet and the
related
technologies has profoundly impacted some areas in service sector,
transforming
\par}{\phpg\posx1417\pvpg\posy1421\absw9395\absh12400 \sl-275 \f10 \fs21 \cf0 their
product mix, distribution channels and competitive strategies. However he went
\par}{\phpg\posx1417\pvpg\posy1421\absw9395\absh12400 \sl-275 \f10 \fs21 \cf0 ahead
to say that, this is only a beginning: in the coming years, we can
expect a
\par}{\phpg\posx1417\pvpg\posy1421\absw9395\absh12400 \sl-275 \f10 \fs21 \cf0 more
far-reaching and deeper transformation. At the same time, this transformation is
unlikely to be uniform: the impact of the Internet will defer significantly among
various
segments of services, such as financial services, banking, securities or
insurance
(ibid). Patton (2001) stated that, organizations often jump into CRM
projects and
initiatives without clear objectives and strategies from the top
management. Vinas
(2001) argue that, it may take time for a CRM strategy to show return and benefits.
\par}{\phpg\posx1417\pvpg\posy1421\absw9395\absh12400 \sl-275 \f10 \fs21 \cf0 CRM

is not a five-minute wonder. Sometimes it takes decades for return on
investment to come in. (Ibid)
Wilson, Daniel and McDonald believe that organizations are becoming to know the
importance of moving closer to their customers and their extended
enterprise
business units. They further state that the leading organizations communicate their

objectives and goals and are mainly to increase business opportunities.
They
summarize these objectives as:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Providing the right offer for each
customer
\fi360 {\f0\fs28 \bullet }{\f40 } Providing the right offer at the right time
for each customer
\fi360 {\f0\fs28 \bullet }{\f40 } Providing the right offer through the right
channel for each customer
\fi360 {\f0\fs28 \bullet }{\f40 } Improving the process to communicate with the
right customers
According to Ragins and Greco (2003) Intimate customer
relationships offer
organizations several advantages and benefits. To begin with, the relationship can
create a committed customer. They went ahead to say that, more than
repeated
purchaser; the committed customer has an emotional attachment to the seller. These
emotions can include trust, liking, and believing in the organization's
ability to
respond effectively and promptly to a customer problem (ibid). This has also been
argued by Fournier (1998) who stated that, committed customers can be viewed as
organizational assets who are likely to be a source of favorable word-
of-mouth
referrals and are resistant to competitor's offers. Another factor that
could affect
usage is the evaluation of tangible return on it, according to Dyche (2001), it
is \par
}
4 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
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5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
difficult to evaluate tangible returns on the resources expanded to plan,
develop,
implement, and operate CRM. This is further supported by Kim, Suh &Hwang (2003)
the intangible nature of benefits such as customer loyalty, service quality, value
enhancement, and innovation of operation, effectiveness of process,
service
improvement, competitiveness, trust and efficiency have to be measured.
Trepper
also noted that we have to wait-and-see to determine the benefits and
the
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 Return
On Investment (ROI) of CRM since CRM does not bring any direct monetary
benefits after implementation. He further goes on to say that rather, CRM requires
a
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 large
amount of initial investment in hardware and software and without any
immediate cost saving or revenue improvement (Ibid). The benefits of CRM need to
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 be
measured on a long-term relationship with customers and to generate long-term
benefits through increased customer satisfaction and retention (Cyber
Marketing
Services, 2000)
According to (Mooney, 2000) a survey of 300 companies conducted at a
CRM
conference concluded that CRM is not a cheap, easy, or fast solution. Patton (2001)

further adds that, most top 500 companies in the USA are involved in some sort of
initiative and strategy and many of the multi million dollar initiatives have
stalled
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-274 \f10 \fs21 \cf0 or
failed as the executives of these companies continue to look for the benefits they
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 want
to get from these initiatives and strategies. Again he stated that, the benefits
the scope are far less what has already been talked about in CRM. Gummesson
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 (2002)
also added that, generally, it is also worth noting that, CRM as an emerging
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 and a
relatively new discipline is in great need of theoretical assistance. In
augmenting this, Stefanou and Sarmaniotis, (2003) argue that, the guiding theories
models are not many and in short supply in the field, this is probably due to the
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 fact
that it is a new area of research and because of its relatively recent interchange
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 with
IT and information systems, which have been rapidly developing.
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \par\f10 \fs21 \cf0 In
brief, we have highlighted the objectives of CRM initiatives and also the potential

benefits of these initiatives on the organizations that undertake them. Therefore,
in
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 view
of all the above-mentioned reasons, the service companies, which constitutes
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 one of
the intangible aspects of production, has not been subjected to in-depth study
explore the objectives of their CRM initiatives and the type of benefits
that the
organisations that undertake these initiatives intend to derive from them. CRM,
being
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 fairly
new, we thought there are lot of gaps and discrepancies in the research and
literature and there is the need for empirical data and comprehensive
information
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 which
show the objectives, strategies of CRM initiatives of service companies and the
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 type
of benefits that these companies intend to derive from the initiatives
thus the
\par}{\phpg\posx1417\pvpg\posy1421\absw9258\absh9679 \sl-275 \f10 \fs21 \cf0 issue
requires further exploration and thus leads to the over all research purpose. \par
}
{\phpg\posx1417\pvpg\posy12701\absw9400\absh2281 \b \f10 \fs21 \cf0 \b \f10
\fs21 \cf0 1.4 Delimitations
\par}{\phpg\posx1417\pvpg\posy12701\absw9400\absh2281 \sl-305 \par\b \f10 \fs21
\cf0 {\b0 This}{\b0 research}{\b0 area}{\b0 is}{\b0 very}{\b0 broad}{\b0 and}
{\b0 due}{\b0 to}{\b0 the}{\b0 limited}{\b0 nature}{\b0 of}{\b0 time,}{\b0
we}{\b0 will}{\b0 only }
{\b0 focus}{\b0 on}{\b0 some}{\b0 of}{\b0 the}{\b0 areas}{\b0 and}{\b0 a}
{\b0 complete}{\b0 picture}{\b0 of}{\b0 the}{\b0 topic}{\b0 will}{\b0 not}
{\b0 be}{\b0 provided. }
{\b0 Therefore,}{\b0 we}{\b0 have}{\b0 limited}{\b0 our}{\b0 study}{\b0 to}
{\b0 unravel}{\b0 the}{\b0 objectives}{\b0 of}{\b0 CRM}{\b0 initiatives}{\b0
and }
{\b0 the}{\b0 type}{\b0 of}{\b0 benefits}{\b0 that}{\b0 service}{\b0
companies}{\b0 in}{\b0 Sweden}{\b0 that}{\b0 undertake}{\b0 these}{\b0
CRM }
{\b0 initiatives}{\b0 intend}{\b0 to}{\b0 derive}{\b0 from}{\b0 it.}{\b0
Moreover,}{\b0 this}{\b0 study}{\b0 will}{\b0 be}{\b0 based}{\b0 on}
{\b0 the }
{\b0 company's}{\b0 point}{\b0 of}{\b0 view}{\b0 and}{\b0 no}{\b0 attention}
{\b0 will}{\b0 be}{\b0 given}{\b0 to}{\b0 the}{\b0 customers'}{\b0
perspective. }
{\b0 This}{\b0 is}{\b0 because}{\b0 in}{\b0 our}{\b0 opinion,}{\b0 CRM}{\b0
has}{\b0 become}{\b0 a}{\b0 very}{\b0 popular}{\b0 topic}{\b0 these}{\b0
days}{\b0 in }\par
}
5 \par
}
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10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
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5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
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0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
many organisations and the customer is becoming very important to them and almost
\par}{\phpg\posx1417\pvpg\posy1421\absw9213\absh2228 \sl-275 \f10 \fs21 \cf0 all
organisations have some form of CRM initiatives.
{\b 1.5}{\b Over}{\b All}{\b Research}{\b Purpose }
\fi67 Based on the reasoning above, our overall research purpose therefore is to
bring
\par}{\phpg\posx1417\pvpg\posy1421\absw9213\absh2228 \sl-275 \f10 \fs21 \cf0 deeper
understanding and insight into the objectives and strategies of CRM initiatives
service companies and the type of benefits that these companies intend to derive
\par}{\phpg\posx1417\pvpg\posy1421\absw9213\absh2228 \sl-275 \f10 \fs21 \cf0 from
the initiatives. \par
}
\cf0 Table 1.1: Operational definition of Variables \par
}
\cf0 Variable
Objectives: \par
}
\cf0 Strategies \par
}
\cf0 Explanation
{\b0 We}{\b0 define}{\b0 this}{\b0 as}{\b0 the}{\b0 aim}{\b0 and}{\b0 goal}
{\b0 of }
{\b0 CRM}{\b0 initiatives}{\b0 and}{\b0 strategies. }
{\b0 We}{\b0 define}{\b0 this}{\b0 as}{\b0 the}{\b0 actions}{\b0 and}{\b0
task }
{\b0 undertaken}{\b0 by}{\b0 these}{\b0 organisations}{\b0 to }
{\b0 be}{\b0 able}{\b0 to}{\b0 achieve}{\b0 the}{\b0 aims}{\b0 and}{\b0
goals }
{\b0 of}{\b0 CRM. }\par
}
\cf0 Initiatives \par
}
{\phpg\posx6061\pvpg\posy7580\absw4259\absh489 \f10 \fs21 \cf0 \f10 \fs21 \cf0 By
this, we mean CRM programs,
\par}{\phpg\posx6061\pvpg\posy7580\absw4259\absh489 \sl-275 \f10 \fs21 \cf0 actions
and activities \par
}
\cf0 Benefits \par
}
{\phpg\posx6061\pvpg\posy8693\absw3838\absh737 \f10 \fs21 \cf0 \f10 \fs21 \cf0 By
this, we mean the advantages or
\par}{\phpg\posx6061\pvpg\posy8693\absw3838\absh737 \sl-275 \f10 \fs21 \cf0 the
gains these organisations will
\par}{\phpg\posx6061\pvpg\posy8693\absw3838\absh737 \sl-275 \f10 \fs21 \cf0 derive
from the CRM \par
}
\fs21 \cf0 Source: by the authors
\cf0 1.6 Disposition of the Study
\cf0 {\b0 This}{\b0 study}{\b0 comprises}{\b0 of}{\b0 seven}{\b0
chapters.}{\b0 The}{\b0 content}{\b0 of}{\b0 the}{\b0 first}{\b0
chapter}{\b0 that}{\b0 is }
{\b0 already}{\b0 presented}{\b0 consist}{\b0 of}{\b0 the}{\b0 introduction,}
{\b0 background,}{\b0 problem}{\b0 discussion}{\b0 and }
{\b0 the}{\b0 overall}{\b0 research}{\b0 purpose.}{\b0 Chapter}{\b0 two}{\b0
is}{\b0 mainly}{\b0 for}{\b0 the}{\b0 literature}{\b0 review}{\b0 of}{\b0
the }
{\b0 study.}{\b0 This}{\b0 consist}{\b0 of}{\b0 the}{\b0 relevant}{\b0
information}{\b0 on}{\b0 the}{\b0 area}{\b0 of}{\b0 study,}{\b0 that}{\b0
is}{\b0 studies}{\b0 by }
{\b0 other}{\b0 authors}{\b0 on}{\b0 the}{\b0 objectives}{\b0 and}{\b0
strategies}{\b0 of}{\b0 CRM}{\b0 initiatives}{\b0 and}{\b0 also}{\b0 the}{\b0
type}{\b0 of }
{\b0 benefits}{\b0 organisations}{\b0 intend}{\b0 to}{\b0 get}{\b0 from}{\b0
these}{\b0 initiatives,}{\b0 also}{\b0 the}{\b0 research}{\b0 questions }
{\b0 of}{\b0 the}{\b0 study}{\b0 is}{\b0 presented}{\b0 in}{\b0 the}{\b0
second}{\b0 chapter.}{\b0 Moreover,}{\b0 chapter}{\b0 three}{\b0 presents}{\b0
the }
{\b0 frame}{\b0 of}{\b0 reference}{\b0 of}{\b0 the}{\b0 study.}{\b0
Further}{\b0 more,}{\b0 chapter}{\b0 four}{\b0 is}{\b0 where}{\b0 the}
{\b0 research }
{\b0 methodology}{\b0 is}{\b0 presented}{\b0 and}{\b0 in}{\b0 this}{\b0
case,}{\b0 a}{\b0 case}{\b0 study}{\b0 on}{\b0 two}{\b0 service}{\b0
companies }
{\b0 will}{\b0 be}{\b0 chosen.}{\b0 We}{\b0 will}{\b0 then}{\b0 move}
{\b0 on}{\b0 to}{\b0 chapter}{\b0 five}{\b0 where}{\b0 the}{\b0
empirical}{\b0 data }
{\b0 presentation}{\b0 is}{\b0 presented.}{\b0 Chapter}{\b0 six}{\b0
will}{\b0 be}{\b0 the}{\b0 analysis}{\b0 of}{\b0 the}{\b0 study.}{\b0
Chapter }
{\b0 seven}{\b0 which}{\b0 will}{\b0 be}{\b0 the}{\b0 final}{\b0 chapter}{\b0
will}{\b0 present}{\b0 the}{\b0 conclusions}{\b0 and}{\b0 implications}{\b0
for }
{\b0 theory}{\b0 and}{\b0 practitioners}{\b0 in}{\b0 the}{\b0 area}{\b0 of}
{\b0 CRM. }\par
}
6 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
{\phpg\posx1417\pvpg\posy1423\absw2309\absh241 \b\i \f10 \fs21 \cf0 \b\i \f10 \fs21
\cf0 2: Literature Review \par
}
{\phpg\posx1417\pvpg\posy2311\absw9267\absh987 \f10 \fs21 \cf0 \f10 \fs21 \cf0 This
chapter focuses on providing the reader with the necessary information about
relevant literature that is connected to our research problem. It provides theories
\par}{\phpg\posx1417\pvpg\posy2311\absw9267\absh987 \sl-275 \f10 \fs21 \cf0 found

which can be connected to, and which covers our research problem. Also our
research question is presented in this chapter. \par
}
\fs21 \cf0 2.1 Strategies and Objectives of CRM Initiatives
\cf0 {\b0 According}{\b0 to}{\b0 Gray}{\b0 and}{\b0 Byun}{\b0 (2001)}{\b0
more}{\b0 than}{\b0 57%}{\b0 of}{\b0 chief}{\b0 executives}{\b0 in}{\b0 a}
{\b0 survey }
{\b0 with}{\b0 191}{\b0 respondents}{\b0 believe}{\b0 that}{\b0 the}{\b0
major}{\b0 objective}{\b0 and}{\b0 strategy}{\b0 of}{\b0 CRM}{\b0 initiatives
}
{\b0 is}{\b0 customer}{\b0 satisfaction}{\b0 and}{\b0 retention.}{\b0 Keen}
{\b0 (2000)}{\b0 states}{\b0 that}{\b0 one}{\b0 of}{\b0 the}{\b0
strategies }
{\b0 and}{\b0 objectives}{\b0 of}{\b0 CRM}{\b0 and}{\b0 eCRM}{\b0 is}{\b0
that}{\b0 companies}{\b0 provide}{\b0 consistent}{\b0 and}{\b0 up-to- }
{\b0 date}{\b0 customer}{\b0 catalog,}{\b0 order}{\b0 and}{\b0 inventory}{\b0
data}{\b0 across}{\b0 all}{\b0 their}{\b0 sales}{\b0 channels:}{\b0 web, }
{\b0 call}{\b0 center}{\b0 and}{\b0 all}{\b0 physical}{\b0 points}{\b0 of}
{\b0 presence.}{\b0 According}{\b0 to}{\b0 Chye}{\b0 and}{\b0 Gerry}{\b0
(2002), }
{\b0 one}{\b0 strategy}{\b0 of}{\b0 CRM}{\b0 initiatives}{\b0 is}{\b0
to}{\b0 change}{\b0 the}{\b0 organization}{\b0 into}{\b0 becoming }
{\b0 customer-centric}{\b0 with}{\b0 a}{\b0 major}{\b0 focus}{\b0 on}{\b0
customer}{\b0 profitability}{\b0 as}{\b0 compare}{\b0 to}{\b0 line }
{\b0 profitability.}{\b0 Again}{\b0 they}{\b0 lamented}{\b0 that,}{\b0 the}
{\b0 understanding}{\b0 gained}{\b0 from}{\b0 CRM}{\b0 enable }
{\b0 companies}{\b0 or}{\b0 organizations}{\b0 to}{\b0 estimate}{\b0 the}{\b0
profitability}{\b0 of}{\b0 individual}{\b0 accounts.}{\b0 They }
{\b0 further}{\b0 add}{\b0 that,}{\b0 organizations}{\b0 are}{\b0 then}{\b0
able}{\b0 to}{\b0 differentiate}{\b0 their}{\b0 customers}{\b0 properly }
{\b0 with}{\b0 respect}{\b0 to}{\b0 their}{\b0 profitability.}{\b0
Organizations}{\b0 can}{\b0 then}{\b0 build}{\b0 predictive}{\b0 churn}{\b0
models }
{\b0 to}{\b0 retain}{\b0 their}{\b0 best}{\b0 customers}{\b0 by}{\b0
identifying}{\b0 symptoms}{\b0 of}{\b0 dissatisfaction}{\b0 and }
{\b0 churning,}{\b0 making}{\b0 sure}{\b0 that}{\b0 the}{\b0 customers}{\b0
who}{\b0 generate}{\b0 profit}{\b0 are}{\b0 retained}{\b0 (ibid). }
\cf0 {\b0 Peppers}{\b0 (1999)}{\b0 summarizes}{\b0 the}{\b0 following}{\b0 as}
{\b0 the}{\b0 basic}{\b0 strategies}{\b0 and}{\b0 objectives}{\b0 of }
{\b0 CRM}{\b0 initiatives: }
\cf0 \fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Customer}{\b0 identification:}
{\b0 The}{\b0 organization}{\b0 must}{\b0 be}{\b0 able}{\b0 to}{\b0
identify}{\b0 the}{\b0 customer }
\fi720 {\b0 via}{\b0 marketing}{\b0 channels,}{\b0 interactions}{\b0 and}{\b0
transactions}{\b0 for}{\b0 a}{\b0 period}{\b0 of}{\b0 time}{\b0 in }
\fi720 {\b0 order}{\b0 to}{\b0 provide}{\b0 value}{\b0 to}{\b0 the}{\b0
customer}{\b0 by}{\b0 serving}{\b0 his}{\b0 or}{\b0 her}{\b0 need}{\b0 at}
{\b0 the}{\b0 right }
\fi720 {\b0 time}{\b0 with}{\b0 a}{\b0 right}{\b0 product}{\b0 or}{\b0
service. }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Customer}{\b0 Differentiation:}{\b0
Every}{\b0 customer}{\b0 has}{\b0 his}{\b0 or}{\b0 her}{\b0 own}{\b0
needs}{\b0 and }
\fi720 {\b0 demands}{\b0 and}{\b0 therefore}{\b0 from}{\b0 the}{\b0
organization's}{\b0 point}{\b0 of}{\b0 view,}{\b0 customers}{\b0 have }
\fi720 {\b0 their}{\b0 own}{\b0 lifetime}{\b0 value. }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Customer}{\b0 Interaction:}{\b0
One}{\b0 of}{\b0 the}{\b0 most}{\b0 important}{\b0 objectives}{\b0 of}
{\b0 CRM}{\b0 by}{\b0 an }
\fi720 {\b0 organization}{\b0 is}{\b0 to}{\b0 keep}{\b0 track}{\b0 of}{\b0
customer}{\b0 behavior}{\b0 and}{\b0 needs}{\b0 over}{\b0 time.}{\b0 This }
\fi720 {\b0 is}{\b0 because,}{\b0 from}{\b0 a}{\b0 CRM}{\b0 point}{\b0 of}
{\b0 view,}{\b0 the}{\b0 customer's}{\b0 long-term}{\b0 profitability }
\fi720 {\b0 and}{\b0 relationship}{\b0 to}{\b0 the}{\b0 company}{\b0 is}{\b0
very}{\b0 important.}{\b0 This}{\b0 is}{\b0 the}{\b0 reason}{\b0 why}{\b0
a }
\fi720 {\b0 company}{\b0 should}{\b0 continue}{\b0 to}{\b0 learn}{\b0
about}{\b0 its}{\b0 customers}{\b0 and}{\b0 in}{\b0 a}{\b0 continuous }
\fi720 {\b0 manner. }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Personalization:}{\b0 This}{\b0
can}{\b0 be}{\b0 defined}{\b0 as}{\b0 treating}{\b0 each}{\b0 customer}{\b0
differently}{\b0 or }
\fi720 {\b0 uniquely}{\b0 and}{\b0 that}{\b0 is}{\b0 the}{\b0 motto}{\b0
or}{\b0 a}{\b0 major}{\b0 objective}{\b0 of}{\b0 CRM.}{\b0 Through}{\b0
the }
\fi720 {\b0 process}{\b0 of}{\b0 personalization,}{\b0 the}{\b0 organization}
{\b0 can}{\b0 increase}{\b0 customer}{\b0 loyalty. }
\cf0 {\b0 According}{\b0 to}{\b0 Stone}{\b0 (2000)}{\b0 there}{\b0 are}{\b0
two}{\b0 main}{\b0 objectives}{\b0 that}{\b0 influence}{\b0 the}{\b0 need}
{\b0 for }
{\b0 CRM}{\b0 technologies}{\b0 to}{\b0 support}{\b0 the}{\b0 completion}{\b0
of}{\b0 CRM}{\b0 strategies}{\b0 and}{\b0 initiatives.}{\b0 These }
{\b0 are}{\b0 according}{\b0 to}{\b0 Stone}{\b0 (2000)}{\b0 as}{\b0
follows: }\par
}
7 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
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5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
{\phpg\posx1417\pvpg\posy1690\absw9276\absh6295 \f40 \fs21 \cf0 \fi359 {\f0\fs28
\bullet }\f40 \fs21 \cf0 {\f10 The}{\f10 need}{\f10 for}{\f10 a}{\f10
higher}{\f10 quality}{\f10 in}{\f10 CRM}{\f10 in}{\f10 order}{\f10 to}
{\f10 meet}{\f10 the}{\f10 needs}{\f10 of}{\f10 the }
{\f10 customers.}{\f10 CRM}{\f10 systems}{\f10 according}{\f10 to}{\f10
Stone}{\f10 (2000)}{\f10 are}{\f10 increasingly}{\f10 being }
{\f10 used}{\f10 to}{\f10 arrange}{\f10 companies'}{\f10 resources}{\f10 in}
{\f10 a}{\f10 proper}{\f10 order. }
{\f0\fs28 \bullet }{\f10 The}{\f10 need}{\f10 for}{\f10 greater}{\f10
productivity}{\f10 in}{\f10 CRM.}{\f10 CRM}{\f10 systems}{\f10 are}{\f10
giving}{\f10 the }
{\f10 possibility}{\f10 to}{\f10 automate}{\f10 work}{\f10 previously}{\f10
done}{\f10 by}{\f10 hand}{\f10 (ibid). }
{\f10 According}{\f10 to}{\f10 Thompson}{\f10 (2004)}{\f10 the}{\f10 main}
{\f10 strategies}{\f10 and}{\f10 objectives}{\f10 of}{\f10 CRM}{\f10
initiatives }
\par}{\phpg\posx1417\pvpg\posy1690\absw9276\absh6295 \sl-275 \f40 \fs21 \cf0 {\f10
are: }
\fi360 {\f0\fs28 \bullet }{\f10 To}{\f10 acquire}{\f10 customers }
{\f0\fs28 \bullet }{\f10 To}{\f10 grow}{\f10 profitable}{\f10 customer}{\f10
relationships }
{\f0\fs28 \bullet }{\f10 To}{\f10 retain}{\f10 profitable}{\f10 customers }
{\f0\fs28 \bullet }{\f10 To}{\f10 create}{\f10 competitive}{\f10 advantage}
{\f10 (ibid) }
{\f10 According}{\f10 to}{\f10 Ryals}{\f10 and}{\f10 Knox}{\f10 2001,}
{\f10 the}{\f10 CRM}{\f10 objectives}{\f10 and}{\f10 strategies}{\f10 for}
{\f10 service }
applications}{\f10 include: }
\fi360 {\f10 1.}{\f10 Cost}{\f10 reduction}{\f10 and}{\f10 increase}{\f10
profitability:}{\f10 a}{\f10 profit}{\f10 center}{\f10 should}{\f10 be}{\f10
created}{\f10 out }
{\f10 of}{\f10 a}{\f10 service}{\f10 organization}{\f10 to}{\f10 generate}
{\f10 more}{\f10 revenues}{\f10 and}{\f10 also}{\f10 operational}{\f10 and }
{\f10 customer}{\f10 information}{\f10 should}{\f10 be}{\f10 used}{\f10 to}
{\f10 reduce}{\f10 cost. }
{\f10 2.}{\f10 Use}{\f10 service}{\f10 to}{\f10 differentiate}{\f10
products:}{\f10 Organizations}{\f10 should}{\f10 use}{\f10 service}{\f10
to }
{\f10 distinguish}{\f10 business}{\f10 by}{\f10 offering}{\f10 service}
{\f10 as}{\f10 a}{\f10 unique}{\f10 feature}{\f10 using}{\f10
multiple }
{\f10 channel}{\f10 communications}{\f10 with}{\f10 customers,}{\f10 and}{\f10
having}{\f10 full}{\f10 enterprise}{\f10 wide}{\f10 view }
{\f10 of}{\f10 customer}{\f10 information. }
{\f10 3.}{\f10 Use}{\f10 service}{\f10 to}{\f10 delight}{\f10 customers:}
{\f10 Organizations}{\f10 should}{\f10 provide}{\f10 enhance }\par
}
customer care, and customer information management
organization to improve customer satisfaction and loyalty. \par
}
across the \par
}
\fs21 \cf0 4. Use service to improve service delivery: Organizations should
create efficient
and effective service business using integrated enterprise-wide information
available in other front office and ERP applications (Ryals and Knox 2001).
\fi67 According to Deck (2004), the objective and the strategy of CRM is that it
should
\par}{\phpg\posx1417\pvpg\posy9245\absw9224\absh4071 \sl-275 \f10 \fs21 \cf0 help
organizations to use technology and human resources to understand the
behavior of customers and the value of those customers. If it works
that way, an
organization can:
\fi360 {\f0\fs28 \bullet }{\f40 } Provide better customer service
{\f0\fs28 \bullet }{\f40 } Make call centers more efficient
{\f0\fs28 \bullet }{\f40 } Cross-sell products more effectively
{\f0\fs28 \bullet }{\f40 } Help sales staff closes deal faster
{\f0\fs28 \bullet }{\f40 } Simplify marketing and sales processes
{\f0\fs28 \bullet }{\f40 } Discover new customers
{\f0\fs28 \bullet }{\f40 } Increase customer revenues (Ibid). \par
}
According to Greenberg (2001), below are objectives and strategies
for an
organization that is implementing CRM: \par
}
8 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\fs21 \cf0 1. Increase revenue: The organization should focus sales force
on increasing
\fi720 revenue through better information and good incentives to drive top
line
\fi720 growth.
\fi360 2. Reduction of cost of sales: Organization should use new
technologies to
\fi720 reduce the cost of deploying sales automation solutions and improve
the
\fi720 effectiveness of sales efforts at the same time.
\fi360 3. Sales representative retention: organization should empower
organizational
\fi720 sales force to proactively track and monitor their
performance and
\fi720 compensations levels to better motivate them to achieve goals and
be
\fi720 successful within their positions and for the organization.
\fi360 4. Increase sales representative productivity: Organization should
reduce the
\fi720 steps involved in tracking and quoting customer data with integration of
sales
\fi720 capabilities across the organization.
\fi360 5. Improve win probability: Organization should improve
the focus of
\fi720 organizational sales efforts with better information to help sales force to
close
\fi720 deals (ibid).
Patton (2001) stated that, one of the objectives and strategies of CRM initiatives
is to
provide sales force with instant information on prospective customers to
boost the
company's chances for rapid expansion around the world and also to help the sales
\par}{\phpg\posx1417\pvpg\posy1697\absw9314\absh12077 \sl-275 \f10 \fs21 \cf0 force
to do brisk business.
\par}{\phpg\posx1417\pvpg\posy1697\absw9314\absh12077 \sl-275 \f10 \fs21 \cf0 Xu,
et al, (2002) indicated that, one of the objectives and the strategies
of CRM
initiatives is to Improve and increase communication between a company
and its
customers as well as within the company itself. Also, they add that not only should

competing departments such as sales and marketing, accounting, customer service
support, and manufacturing or fulfillment within the customer be enhanced. Further
they indicated that, it should help in a fundamental shift in the information flow
within an enterprise, from quantitative data to qualitative data.
Moreover, they say
one of the objectives is to integrate strategy, process, technology, and people in
\par}{\phpg\posx1417\pvpg\posy1697\absw9314\absh12077 \sl-275 \f10 \fs21 \cf0 a
comprehensive change management process. Again they indicated that another
objective is to change the way information flow in the organization (ibid).
\par}{\phpg\posx1417\pvpg\posy1697\absw9314\absh12077 \sl-275 \f10 \fs21 \cf0 Kim,
Suh and Hwang (2003) also divided the strategies and objectives of CRM
initiatives into four categories. They are as follows:
\cf0 \fi360 1. Customer knowledge:
\fi720 {\f0\fs28 \bullet }{\f40 } Appropriate customer information collection
\fi720 {\f0\fs28 \bullet }{\f40 } Analyzing customer data
\fi720 {\f0\fs28 \bullet }{\f40 } Acquiring new customers
\fi720 {\f0\fs28 \bullet }{\f40 } Employee training and skills improvement
\fi720 {\f0\fs28 \bullet }{\f40 } CRM technique improvement
\fi720 {\f0\fs28 \bullet }{\f40 } Secure service
\cf0 \fi360 2. Customer interaction:
\fi720 {\f0\fs28 \bullet }{\f40 } Responding appropriately to customer request
\fi720 {\f0\fs28 \bullet }{\f40 } Business process integration
\fi720 {\f0\fs28 \bullet }{\f40 } Channels management improvement
\fi720 {\f0\fs28 \bullet }{\f40 } Maximizing the effectiveness and efficiency of
organizational operations
\fi720 {\f0\fs28 \bullet }{\f40 } Customizing products and services. \par
}
9 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\fs21 \cf0 3. Customer Value:
\fi719 {\f0\fs28 \bullet }{\f40 } Improving customer retention
\fi719 {\f0\fs28 \bullet }{\f40 } Increasing profits
\fi719 {\f0\fs28 \bullet }{\f40 } Customer service and support improvement
\fi719 {\f0\fs28 \bullet }{\f40 } Building an attractive virtual community
\cf0 \fi359 4. Customer satisfaction.
\fi784 {\f0\fs28 \bullet }{\f40 } Improving service quality
\fi784 {\f0\fs28 \bullet }{\f40 } Establishing relationships with customers
(ibid)
Trepper (2000) indicated that, there are three crucial strategies and objectives
that
\par}{\phpg\posx1417\pvpg\posy1421\absw9351\absh12381 \sl-275 \f10 \fs21 \cf0 need
to be fulfilled by a CRM system. These are as follows:
\fi360 {\f0\fs28 \bullet }{\f40 } To enable the sales, marketing and the
service staff to perform their duties
\fi720 more like a team, that will lead to a reduce cost and increase efficiency.
\fi360 {\f0\fs28 \bullet }{\f40 } To provide a complete view and
consistent view of each customer for all
\fi720 customer interactions by the company.
\fi360 {\f0\fs28 \bullet }{\f40 } To provide the customer with a complete view
of the company, irrespective of
\fi720 how the customer contacts the company (ibid).
According to Burnett (2001) CRM objectives and strategies can also be
grouped
\par}{\phpg\posx1417\pvpg\posy1421\absw9351\absh12381 \sl-275 \f10 \fs21 \cf0 under
the following categories:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Increased profitability margins: By
knowing the customers better, efforts can
\fi720 be made to switch less profitable accounts to lower cost/service
delivery
\fi720 channels.
\fi360 {\f0\fs28 \bullet }{\f40 } Decreased sales and marketing administrative
cost: The decrease can occur if
\fi720 the organization specify and has good knowledge about its target
segment
\fi720 customers. As a result, the organization will use its resources better when
no
\fi720 effort is a waste of money or time.
\fi360 {\f0\fs28 \bullet }{\f40 } Improve customer satisfaction rate: The
increase in customer satisfaction rate
\fi720 will occur because customers will find that the offer is more in
line with
\fi720 customers' specified needs.
\fi360 {\f0\fs28 \bullet }{\f40 } Win rates: This will also improve
because the company will withdraw from
\fi720 unlikely or bad deals earlier in the sales process (ibid).
According to Xu (2002) the strategy and objective with CRM is to
improve a
customer's experienced value of how they interact with companies, which will create

satisfaction, which will intend creates loyalty and thus brings more sales. He
again
states that, the value of interaction will be improved by increasing
companies'
capacity to understand a customer's specific needs (ibid).
Bayon, Gutsche and Bauer (2002) state that, organizations should see the objectives

marketing applications by CRM. They went ahead to say that, these could
be
categorized under the following:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Better information for better
management: Organizations should implement
\fi720 highly focused targeted campaigns with better returns on
marketing
\fi720 investments.
\fi360 {\f0\fs28 \bullet }{\f40 } Expanding marketing channels through the web:
Organizations should make
\fi720 use of the power of the Internet to increase marketing reach and
effectiveness. \par
}
10 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
{\phpg\posx1777\pvpg\posy1414\absw1734\absh264 \f40 \fs21 \cf0 {\f0\fs28
\bullet }\f40 \fs21 \cf0 {\f10 Closed-loop }\par
}
marketing: \par
}
Organizations
system that \par
}
comprehensive \par
}
marketing \par
}
should
support \par
}
use \par
}
programs \par
}
{\phpg\posx10063\pvpg\posy1438\absw470\absh241 \f10 \fs21 \cf0 \f10 \fs21 \cf0 with
\par
}
planning, \par
}
campaign \par
}
\fs21 \cf0 management, execution, Internet support and analysis to improve
marketing
\fi720 management (ibid).
Patton (2001) argues that, the strategy and the objective of CRM
initiative and
software is to help organizations keep track of their customers and boost revenue
by
increasing customer loyalty. He went on to say that, another strategy of CRM is to
develop customer loyalty and sales per customer to increase the bottom
line.
According to Crosby (2002) organizations invest so much in CRM systems
and
initiatives today but many of these systems fail to meet the management objectives
\par}{\phpg\posx1417\pvpg\posy1989\absw9372\absh11710 \sl-275 \f10 \fs21 \cf0 on
return on investment. He further indicated that, one reason is that,
companies
\par}{\phpg\posx1417\pvpg\posy1989\absw9372\absh11710 \sl-275 \f10 \fs21 \cf0 apply
the technology with the absence of a holistic and coherent business strategy
focused on the customer. Again he says that, CRM technology is only an enabler,
\par}{\phpg\posx1417\pvpg\posy1989\absw9372\absh11710 \sl-275 \f10 \fs21 \cf0 along
with people and processes. Therefore IT needs to be aligned with
business
objectives and strategies for establishing long-term, collaborative relationships
with
customers. He further indicated that, management needs to know the clear picture
of
\par}{\phpg\posx1417\pvpg\posy1989\absw9372\absh11710 \sl-275 \f10 \fs21 \cf0 what
the strategy involved and the success requirements (ibid).
Dyche (2001), argues that organizations purchase CRM products base on the

following objectives:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Customer profitability and value
modeling: Extensive processing and detailed
\fi720 data combined with profitability modeling products have made it possible for

\fi720 organizations to know which of their customers are valuable and thus worth
\fi720 keeping. Now organizations can measure the customers who are price
\fi720 sensitive, those who bring in some small margins and might never recoup
their
\fi720 value, irrespective of their purchase volume; yet some customers who are
very
\fi720 low volume purchasers were nevertheless highly profitable.
However,
\fi720 profitability is only one area of revenue line. A customer can be
unprofitable at
\fi720 the short run but could have referred many high-value customers to
the
\fi720 organization, thereby making him very valuable. Again some customers could
\fi720 be very profitable and valuable at the long run (ibid)
\fi360 {\f0\fs28 \bullet }{\f40 } Customer retention: Knowing and
understanding that some customers have
\fi720 left the company and knowing specifically who has left is even more
important,
\fi720 and also knowing why these customers left is not an easy task at all. The
more
\fi720 customers leave, the revenue to the company decreases and hence
the
\fi720 greater the loss of revenue. It is also difficult to encourage customers to
stay,
\fi720 but this is done base on the assumption that, keeping an existing customer
is
\fi720 far more cost effective than acquiring a new one (ibid)
\fi360 {\f0\fs28 \bullet }{\f40 } Cross-selling and up-selling: Cross-selling
and up selling is trying to know
\fi720 which products can increase, rather than decrease a
customer's total
\fi720 profitability. Cross-selling is selling a product to a customer base on
another
\fi720 purchase the customer has already done. Up-selling is also defined
as
\fi720 motivating an existing customer to trade up to more profitable
products.
\fi720 Because of the assumption that selling more services to an existing customer

\fi720 is less costly and also increases revenue, it has become very common these
\fi720 days. Cross-selling helps companies to sell the right product to
the right
\fi720 customer at the right time. The desire of many companies to do
the cross- \par
}
11 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\fs21 \cf0 selling has made the automation of CRM marketing technologies very
popular
\fi719 (ibid).
\fi359 {\f0\fs28 \bullet }{\f40 } Behavior Prediction: This helps
organizations to determine the next thing
\fi719 customers will do in the future. Data mining techniques are use for behavior

\fi719 prediction based on the customers' history to foresee customer's
future
\fi719 behavior. By understanding the next action a customer will
take, the
\fi719 organization can make so many marketing decisions based on that. The key to
\fi719 this is to help you to actually know who your best customers are (ibid).
\fi359 {\f0\fs28 \bullet }{\f40 } Personalization: This is the ability of a
company to personalize or customize
\fi720 communication, products and services base on knowledge, behavior and

\fi720 preferences at the interaction time. Personalization technologies can
apply
\fi720 their learning's to future personalized messages. This helps to
remove the
\fi720 guesswork, resulting in a creeping understanding of customers and
their
\fi720 preferences over that customer's relation with your company. Personalization

\fi720 on a business to customers (B2C) website is largely based on the analysis of

\fi720 a customer's click streams, his or her navigation path through a
company's
\fi720 website (ibid).
According to Jiang (2003), the challenge of CRM is to overcome hurdles, minimize
\par}{\phpg\posx1417\pvpg\posy1421\absw9500\absh12250 \sl-275 \f10 \fs21 \cf0 risk
and also guarantee results. He further indicated that, rather than seeking all the
answers before undertaking an initiative, the organization, must define a
clear
roadmap of their objectives (ibid).
According to Morelli, clark and Thesler, (2001) four primary strategies abd
objectives
eCRM are as followes:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Personalisation: This involves
ensuring that, the customer receives
\fi720 personalised and customised content, communication, product
offers,
\fi720 capabilities, product combinations and prices.
\fi360 {\f0\fs28 \bullet }{\f40 } Tracking and tracing: this also requires
that, the recording of clicks-streams
\fi720 and customer information to predict behaviours and modify the online
strategy
\fi720 and personalisation strategies.
\fi360 {\f0\fs28 \bullet }{\f40 } Ecommunications: This also involves the
synchronization and application of
\fi720 email, chat, voice and video interactions.
\fi360 {\f0\fs28 \bullet }{\f40 } Eknowledge: This is the management and
provision of information, ranging
\fi720 from frequently asked questions to online discussion forums. Its purpose is
to
\fi720 maximise the long-term value of a customer.
The application of eCRM strategies and initiatives will prove vital in
the battle for
online customers, particularly as new technologies reaches greater volume
of
consumers (ibid).
Hoffman and Kashmeri (2000) stated that, the strategy and objective of CRM was not
\par}{\phpg\posx1417\pvpg\posy1421\absw9500\absh12250 \sl-275 \f10 \fs21 \cf0 just
to be cost-reduction oriented but to them CRM means better management of

customers and the relationship with them that enable information flow,
such as
pricing, inventory and planning, in both directions. According to Newell
(2000) the
fundamental goal and strategy of CRM is to improve organizational
profitability
through efficient and effective customer relations. Further more, he state
that, the
strategy of CRM initiative is to be able to identify all the customer groups, the
top
group, the middle group and the lower group and also be able to know the strategies
\par
}
12 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
{\phpg\posx1417\pvpg\posy1421\absw9072\absh489 \f10 \fs21 \cf0 \f10 \fs21 \cf0 to
use to respond to all these group and to serve them well. Also he states that, CRM
strategies and initiatives are effective if they deliver positive outcomes
(ibid). \par
}
\cf0 2.2 Benefits of CRM Initiatives
{\b0 According}{\b0 to}{\b0 Gray}{\b0 and}{\b0 Byun}{\b0 (2001)}{\b0 the}{\b0
following}{\b0 are}{\b0 the}{\b0 main}{\b0 benefits}{\b0 of}{\b0 CRM.}{\b0
They }
{\b0 went}{\b0 on}{\b0 to}{\b0 say}{\b0 that,}{\b0 for}{\b0 an}{\b0
organization}{\b0 to}{\b0 get}{\b0 all}{\b0 these}{\b0 benefits,}{\b0 sales,}
{\b0 marketing}{\b0 and }
{\b0 service}{\b0 functions}{\b0 must}{\b0 work}{\b0 together: }
\fi360 {\f0\fs27 \bullet }{\b0 \f40 }{\b0 To}{\b0 improve}{\b0 the}{\b0
company's}{\b0 ability}{\b0 to}{\b0 retain}{\b0 and}{\b0 acquire}{\b0
customers }
\fi360 {\f0\fs27 \bullet }{\b0 \f40 }{\b0 To}{\b0 maximize}{\b0 the}{\b0
lifetime}{\b0 value}{\b0 of}{\b0 each}{\b0 customer }
\fi360 {\f0\fs27 \bullet }{\b0 \f40 }{\b0 To}{\b0 improve}{\b0 service}{\b0
without}{\b0 increasing}{\b0 cost}{\b0 of}{\b0 service. }
{\b0 Again}{\b0 they}{\b0 argue}{\b0 that,}{\b0 proper}{\b0 identification}
{\b0 of}{\b0 the}{\b0 customer}{\b0 helps}{\b0 sales}{\b0 force}{\b0 to}{\b0
do }
{\b0 cross}{\b0 selling.}{\b0 They}{\b0 further}{\b0 add}{\b0 that,}{\b0
this}{\b0 is}{\b0 through}{\b0 clean}{\b0 data}{\b0 about}{\b0 the}{\b0
customer}{\b0 and }
{\b0 a}{\b0 single}{\b0 customer}{\b0 view.}{\b0 Further}{\b0 more,}{\b0
they}{\b0 say}{\b0 that,}{\b0 understanding}{\b0 the}{\b0 customer }
{\b0 through}{\b0 differentiation}{\b0 can}{\b0 lead}{\b0 to}{\b0 cost}
{\b0 effective}{\b0 marketing}{\b0 campaign,}{\b0 it}{\b0 could}{\b0
also }
{\b0 reduce}{\b0 something}{\b0 like}{\b0 for}{\b0 example}{\b0 direct}{\b0
mailing}{\b0 cost.}{\b0 Also,}{\b0 they}{\b0 argue}{\b0 that}{\b0 customer }
{\b0 satisfaction}{\b0 and}{\b0 loyalty}{\b0 through}{\b0 interaction}{\b0
could}{\b0 also}{\b0 lead}{\b0 to}{\b0 cost}{\b0 effective}{\b0 customer }
{\b0 service.}{\b0 Moreover,}{\b0 they}{\b0 argue}{\b0 that,}{\b0
customer}{\b0 satisfaction}{\b0 and}{\b0 loyalty}{\b0 through }
{\b0 personalization}{\b0 can}{\b0 also}{\b0 lead}{\b0 to}{\b0 lower}{\b0
cost}{\b0 of}{\b0 acquisition}{\b0 and}{\b0 retention}{\b0 of}{\b0 customer }
{\b0 and}{\b0 thereby}{\b0 maximizing}{\b0 share}{\b0 of}{\b0 wallet.}{\b0
(Gray}{\b0 and}{\b0 Byun}{\b0 2001) }
\fi427 Table 2. 1: Benefits of CRM projects \par
}
\cf0 CRM
strategy
Source
of \par
}
\cf0 Identification Differentiation Interaction Customization/personalization
\par
}
{\phpg\posx2940\pvpg\posy8941\absw696\absh489 \f10 \fs21 \cf0 \f10 \fs21 \cf0 Clean
\par}{\phpg\posx2940\pvpg\posy8941\absw696\absh489 \sl-275 \f10 \fs21 \cf0 about

\par
}
{\phpg\posx3965\pvpg\posy8941\absw1926\absh489 \f10 \fs21 \cf0 \f10 \fs21 \cf0 data
Understand
customer \par
}
Customer \par
}
Customer \par
}
satisfaction \par
}
and \par
}
\cf0 benefits{\b0 customer }
\fi1162 {\b0 Single }
\fi1162 {\b0 Customer }
\fi1162 {\b0 View }\par
}
\cf0 Benefits{\b0 Help }
\fi1162 {\b0 force }\par
}
satisfaction loyalty
loyalty \par
}
sales Cost effective Cost \par
}
Cross selling \par
}
marketing
campaign \par
}
effective
customer \par
}
Lower cost of acquisition and
retention of customer
Maximize share of wallet \par
}
\cf0 Reduce direct service
\fi3232 mailing cost
\fi3178 {\fs18 Source:}{\fs18 Gray}{\fs18 and}{\fs18 Byun}{\fs18 (2001) }
Crosby (2002) argues that, by using customer information wisely to deliver what the

customer needs, companies will create long-term, collaborative relationships with
the
customers. He further states that, this will bring many benefits since
long-term
customers are less costly to serve and smooth-running relationships are
less
resource intensive (ibid). A survey of more than 500 executives in six
industries,
communication, chemicals, pharmaceuticals, electronics/high-tech, forest
products
retail, believe that 10% improvement of overall CRM capabilities can add up to
\par}{\phpg\posx1417\pvpg\posy11434\absw9325\absh3437 \sl-275 \f10 \fs21 \cf0 $35
million benefits to a $1 billion business unit. (Gray and Byun 2001). CRM is a
\par}{\phpg\posx1417\pvpg\posy11434\absw9325\absh3437 \sl-275 \f10 \fs21 \cf0 very
big tool that contributes so much to profit indicated by Newell (2000). Further
he stated that, if organizations could transform the customer data
into \par
}
13 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
knowledge and then use that knowledge to build relationships it would then create
loyalty and thereby creating profit (ibid). Turban{\i et}{\i al.} (2000) suggest
that increasing
customer satisfaction increases customer loyalty. Swift (2001 pp. 28)
argues that
organizations can get a lot of benefits from CRM initiatives. He goes on to say
that,
\par}{\phpg\posx1417\pvpg\posy1421\absw9305\absh12250 \sl-275 \f10 \fs21 \cf0 these
benefits could be found in these areas:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Higher customer retention and loyalty:
\fi360 The customer retention will increase when customers stay longer, buy more
and
\fi360 buy more frequently. The customers take more initiatives that increase
bounding
\fi360 relationship, and as a result the customer loyalty increases.
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Increased customer profitability:
\fi360 The customer profitability will increase when the customer wallet-share
increases,
\fi360 the up-selling goes up as well as cross-selling and follow up sales and also
more
\fi360 referrals come with higher customer satisfaction among existing customers.
\fi360 {\f0\fs28 \bullet }{\f40 } Evaluation of Customer profitability:
\cf0 \fi360 When the organization gets to know which customers are
profitable and which
\fi360 ones that might become profitable in future, that is the potential
profitable
\fi360 customers and those who will never become profitable. This is a very
important
\fi360 area because the key to any successful business is to acquire and focus on
those
\fi360 customers who bring profit, when you get them, you do not want to leave
them.
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Reduced cost of sales:
\fi360 The costs regarding selling are reduced due to the fact that existing
customers
\fi360 are usually more responsive. In addition, with better knowledge of channels
and
\fi360 distributors, the relationships become more effective, as well as
costs for
\fi360 marketing campaigns are reduced.
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Lower cost of recruiting customers:
\fi360 When the cost of recruiting new customers reduce or go down,
there will be
\fi360 savings to be made on marketing, mailing, contact, follow-up,
fulfilling, service
\fi360 and many more.
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } No need to recruit so many
customers to preserve a steady volume of
\fi720 business: When the number of long-term customers increases
and
\fi720 consequently the need to recruit many new customers will decrease (ibid).
\cf0 \fi360 Bose (2002) argues that, most organizations can use CRM, however he
goes on
\fi360 to say that, there are some organizations that are more likely to get more
benefits
\fi360 from CRM than others. Further more he states that, those are the companies
that
\fi360 accumulate a huge customer data when doing business and whose
customer
\fi360 needs are differentiated. On the other hand, Bose (2002) says that,
companies
\fi360 that rarely have any contact with their customers have a higher
customer turn
\fi360 over and identical customer needs are likely to get less benefit from CRM
(ibid).
\fi360 According to Newell (2002) organizations should under take CRM
initiatives
\fi360 where they will get the best possible return and benefits. He goes on to
indicate
\fi360 that, companies should then focus on customers who are already profitable
and
\fi360 those who will become the company's most profitable customers in future
(ibid). \par
}
14 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
Jiang (2003) found that an integrated eCRM or CRM strategy would allow
organizations to manage customer and supplier relationships more
effectively
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-275 \f10 \fs21 \cf0 than
ever before. He further stated that, it would also help organizations to build
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-275 \f10 \fs21 \cf0 long-
term customer relationships, also brand loyalty and repeat sales that at the
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-275 \f10 \fs21 \cf0 end
will result in increased and sustained profitability. Again he stated
that the
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-275 \f10 \fs21 \cf0 end
result of a CRM initiative is a better bottom line. A successful CRM strategy
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-275 \f10 \fs21 \cf0 can
mean millions of dollars in incremental revenue from increased customer
retention, greater revenue per customer. More over he indicated that,
with the
ability to do cross- selling and up-selling to customers the result would be better

customer loyalty and greater customer satisfaction (ibid). Thompson (2004)
argues that, if CRM is a successful business strategy then it should
help the
organization to grow profitably and create a competitive advantage.
Thompson
(2004) found in an online CRMGuru study of more than 1,000 CRM projects and
initiatives that the top four expected benefits were increasing customer
loyalty,
gaining competitive advantage, increasing sales and increasing profitability. Also
increasing productivity and executive decision-making, cutting costs or expenses
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-275 \f10 \fs21 \cf0 were
some of the expected benefits from CRM initiatives. The study concluded
CRM activities and initiatives have a positive impact on a company's
performance (ibid).
Ragins and Greco (2003) argue that, intimate customer relationships offer
companies many benefits and advantages. Fournier (1998) says that, committed
customers of an organization could be viewed as assets who are likely to be a
source of favorable word of mouth referrals and are more resistant to competitor's
offers (ibid).
Wilson, Daniel and McDonald (2002) argue that; an organization can
receive
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-275 \f10 \fs21 \cf0 these
benefits from their CRM initiatives:
{\f0\fs28 \bullet }{\f40 } Higher customer profitability: Increasing
individual customer margins while
\fi360 offering the right product at the right time.
{\f0\fs28 \bullet }{\f40 } Creating value for the customer: acquiring the
right customers base on
\fi360 customer information and knowledge or learnt characteristics that drive
growth
\fi360 and increased margins.
{\f0\fs28 \bullet }{\f40 } Increasing customer retention and royalty: The
ability to retain loyal and
\fi360 profitable customers will increase the profitability of the organization
(ibid).
According to Kim, Suh and Hwang (2003) customer value describes both tangible
the intangible benefits gained from CRM activities, which help to arrange the
relationship with the customer successfully. Again they say that, customer value
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-275 \f10 \fs21 \cf0 can
be achieved through value added by relevant information in
virtual
communities, a loyalty program, and an attractive bundling of different products
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-274 \f10 \fs21 \cf0 for
instance. They further indicated that, in order for an organization to determine
value of its customer, the organization needs to analyze such information as
marketing campaigns, number of retention customers, and net sales. More over
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-275 \f10 \fs21 \cf0 they
go on to say that, CRM initiatives should provide mutually beneficial value to
customer and the organization in particular (ibid).
According to Newell (2000), CRM is a useful tool in terms of identifying the right
customer groups and for helping to decide which customers to jettison. Again he
lamented that, relationship customers have far more potential for loyalty as they
\par}{\phpg\posx1777\pvpg\posy1421\absw8983\absh12454 \sl-275 \f10 \fs21 \cf0 are
often prepared to pay a premium price for a range of reliable goods or
\par
}
15 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\fs21 \cf0 services. Also he says that, once relationship customers are acquired,
they are
\fi359 less likely to defect, provided they continue to receive quality service.
Moreover
\fi359 Newell (2000) adds that, one of the benefits is that, it makes existing
customers
\fi359 more cost effective than new customers because they are already familiar
with
\fi359 and also requires less effort to convince them to buy the company's products
and
\fi359 services (ibid).
\fi359 Newell (2000) divides customers into three types according to the
benefits
\fi359 organizations derive from them as follows:
\cf0 \fi719 {\f0\fs28 \bullet }{\f40 } The top group: These consist of the top
10% and these are the customers
\fi1079 with excellent loyalty and of high profitability for the organization.
\fi719 {\f0\fs28 \bullet }{\f40 } The middle group: these consist of the
40%-50% of the company's
\fi1079 customers and they are the ones delivering good profits and also show a
\fi1079 very good potential for future growth and loyalty.
\fi719 {\f0\fs28 \bullet }{\f40 } The lower group: these consist of the
lower 40%-50% of the company's
\fi1079 bottom customers and are those who are only marginally profitable
and
\fi1079 these may become potential future profitable customers.
\cf0 \fi283 Xu, Yen, Lin, and Chou (2002) argue that CRM initiatives do
not only improve
\fi283 customer loyalty but it also improves the internal processes, which
in turn
\fi283 increases as well. Again they indicated that, one of the benefits of CRM is
that, it
\fi283 identifies and targets best customers based on recent purchase or
behavior,
\fi283 frequency and monetary scoring. Further more they stated that, it helps to
manage
\fi283 marketing campaigns with clear goals and measurable or quantifiable
objectives.
\fi283 More over XU, et al (2002) state that one of the benefits of CRM initiatives
is that it
\fi283 creates and manages solid sales leads for field and telesales
representatives.
\fi283 They further add the following as some of the benefits that organizations
derive
\fi283 from their CRM initiatives and solutions{\f20 : }
\fi719 {\f0\fs28 \bullet }{\f40 } It increases marketing and cross selling
opportunities
\fi719 {\f0\fs28 \bullet }{\f40 } It enables tight and accurate targeting and
one-to-one marketing
\fi719 {\f0\fs28 \bullet }{\f40 } It helps increases return on marketing
investment
\fi719 {\f0\fs28 \bullet }{\f40 } It adds more valuable knowledge already
gained from direct customer
\fi1079 interaction and this knowledge in turn helps improve product development
\fi1080 process (ibid).
Xu, et al, (2002) summarize the following as the benefits of CRM initiatives from
the
\par}{\phpg\posx1417\pvpg\posy1421\absw9408\absh11950 \sl-275 \f10 \fs21 \cf0 sales
perspective:
\cf0 \fi720 {\f0\fs28 \bullet }{\f40 } It improves telesales, field sales, and
sales management through real time
\fi1080 information sharing among multiple employees.
\fi720 {\f0\fs28 \bullet }{\f40 } It increases sales efficiency through wire and
Internet-based order entry.
\fi720 {\f0\fs28 \bullet }{\f40 } It improves territory management with
real time account information
\fi1080 updates
\fi720 {\f0\fs28 \bullet }{\f40 } It improves the entire sales force by
capturing, distributing and leveraging
\fi1080 the success and expertise of the highest performers.
\fi720 {\f0\fs28 \bullet }{\f40 } It increases revenue per call by
focusing on growing the best accounts
\fi1080 (ibid). \par
}
16 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
According to Xu, et al (2002) the following summarize the benefits of CRM
initiatives
solutions from the field service perspective:
\cf0 \fi720 {\f0\fs28 \bullet }{\f40 } It ensures customer satisfaction
and retention by solving customer
\fi1080 problems quickly.
\fi720 {\f0\fs28 \bullet }{\f40 } It integrates the management of people
and materials within the service
\fi1080 organization smoothly.
\fi720 {\f0\fs28 \bullet }{\f40 } It again ensures customer satisfaction by
allocating, scheduling and
\fi1080 dispatching the right people, with the right parts at the right time
(ibid).
Xu, et al, (2002) summarize the benefits of CRM initiatives and solutions from the
perspective of the customer support as follows:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Shared relationships with personalized
customer care based on specific
\fi720 customer history and preferences are strengthened.
\fi360 {\f0\fs28 \bullet }{\f40 } Through automated scripting based on known
solutions, call center efficiency
\fi720 and help desk support's quality are improved
\fi360 {\f0\fs28 \bullet }{\f40 } Support and service costs are reduced when
Web-based support functionality
\fi720 is extended directly to the customer and this increases customer
satisfaction.
\fi360 {\f0\fs28 \bullet }{\f40 } All customer contact from sales, support,
field service and marketing are
\fi720 centralized.
\cf0 \fi360 Scullin, Allotra, Lloyd and Fjermestad (2002) lamented that CRM
can bring
\fi360 greater efficiency and cost reduction in an organization. For
example, they
\fi360 indicated that, the integration of customer data into a single
database by an
\fi360 organization allows the company to do marketing teams, sales force
and other
\fi360 departments within the company to share information and work toward common
\fi360 corporate objectives by using the same underlying statistics. They
further state
\fi360 that, CRM helps improve customer service and support. They argue
that for
\fi360 instance, it helps the organization to receive more accurately, update and
close
\fi360 even the very remote orders. Again they lamented that, it also
helps to view
\fi360 customer service agreements, search for proven solutions and best practices,
and
\fi360 subscribe to products-related information and software patches and
access
\fi360 knowledge tools useful in completing service orders.
\fi360 One of the benefits that Scullin, Allotra, Lloyd and Fjermestad (2002)
believe can
\fi360 be derived from CRM initiatives is increased customer loyalty. This they say
can
\fi360 be seen in this aspect, for example, information captured by CRM system
helps a
\fi360 company to identify the actual costs of winning and retaining individual
customers.
\fi360 Also having the data allows the firm to focus its time and resources on its
most
\fi360 profitable customers. Moreover, they say that, classifying one's best
customer in
\fi360 this way allows an organization to manage them more efficiently as a premium

\fi360 group, with the understanding that it is neither necessary nor advisable to
treat all
\fi360 customers in the same way because each customer is different and has his or
her
\fi360 own unique needs and demands. Further more, Scullin, Allotra, Lloyd
and
\fi360 Fjermestad (2002) hammered that more effective marketing can be realized as
a
\fi360 result of CRM initiatives. They argue that, for example, having detailed
customer
\fi360 satisfaction from an eCRM system can allow a company to predict
the kind of
\fi360 products that a customer is likely to buy as well as the timing of
purchases. Again
\fi360 they continue to say that, CRM allows for more targeted campaigns
and also
\fi360 tracking of campaign effectiveness. Moreover, they add that, customer data
can \par
}
17 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
{\phpg\posx1777\pvpg\posy1421\absw8790\absh489 \f10 \fs21 \cf0 \f10 \fs21 \cf0 be
analyzed from multiple perspectives to discover which elements of a marketing
campaign received the greatest impact on sales and profitability. \par
}
\cf0 Benifits
\par}{\phpg\posx1417\pvpg\posy2536\absw2924\absh488 \sl-274 \b \f10 \fs21 \cf0 {\b0
Increased}{\b0 customer}{\b0 loyalty }\par
}
{\phpg\posx1417\pvpg\posy6409\absw2669\absh241 \f10 \fs21 \cf0 \f10 \fs21 \cf0 More
effective marketing \par
}
Improve customer service and support \par
}
\fs21 \cf0 Examples
{\b0 Information}{\b0 captured}{\b0 by}{\b0 CRM}{\b0 or}{\b0 eCRM }
{\b0 system}{\b0 helps}{\b0 a}{\b0 company}{\b0 to}{\b0 identify}{\b0
the }
{\b0 actual}{\b0 costs}{\b0 of}{\b0 a}{\b0 winning}{\b0 and}{\b0
retaining }
{\b0 individual}{\b0 customers. }
{\b0 Having}{\b0 this}{\b0 data}{\b0 allows}{\b0 the}{\b0 organisation}{\b0
to }
{\b0 focus}{\b0 its}{\b0 time}{\b0 and}{\b0 resources}{\b0 on}{\b0 its}
{\b0 most }
{\b0 profitable}{\b0 customers. }
{\b0 Classifying}{\b0 one's}{\b0 best}{\b0 customers}{\b0 in}{\b0 this }
{\b0 way}{\b0 allows}{\b0 the}{\b0 company}{\b0 to}{\b0 manage}{\b0
them }
{\b0 more}{\b0 efficiently}{\b0 as}{\b0 premium}{\b0 group,}{\b0 with}{\b0
the }
{\b0 understanding}{\b0 that}{\b0 it}{\b0 is}{\b0 neither}{\b0
necessary }
{\b0 nor}{\b0 advisable}{\b0 to}{\b0 treat}{\b0 every}{\b0 customer}{\b0 in}
{\b0 the }
{\b0 exact}{\b0 same}{\b0 way }
{\b0 Having}{\b0 detailed}{\b0 customer}{\b0 satisfaction}{\b0 from }
{\b0 an}{\b0 Ecrm}{\b0 system}{\b0 allows}{\b0 a}{\b0 company}{\b0
to }
{\b0 predict}{\b0 the}{\b0 kind}{\b0 of}{\b0 products}{\b0 that}{\b0 a}{\b0
customer }
{\b0 is}{\b0 likely}{\b0 to}{\b0 buy}{\b0 as}{\b0 well}{\b0 as}{\b0
the}{\b0 timing}{\b0 of }
{\b0 purchases. }
{\b0 CRM}{\b0 allows}{\b0 for}{\b0 more}{\b0 targeted}{\b0 campaigns }
{\b0 and}{\b0 tracking}{\b0 of}{\b0 campaign}{\b0 effectiveness. }
{\b0 Customer}{\b0 data}{\b0 can}{\b0 be}{\b0 analysed}{\b0 from }
{\b0 multiple}{\b0 perspective}{\b0 to}{\b0 discover}{\b0 which }
{\b0 elements}{\b0 of}{\b0 a}{\b0 marketing}{\b0 campaign}{\b0 had}{\b0 the }
{\b0 greatest}{\b0 impact}{\b0 on}{\b0 sales}{\b0 and}{\b0 therefore
}
{\b0 profitability. }
{\b0 More}{\b0 accurately}{\b0 receive;}{\b0 update}{\b0 and}{\b0 close }
{\b0 orders}{\b0 remotely}{\b0 log}{\b0 materials,}{\b0 expenses }
{\b0 and}{\b0 time}{\b0 associated}{\b0 with}{\b0 service}{\b0 orders. }
{\b0 View}{\b0 customer}{\b0 service}{\b0 agreements. }
{\b0 Search}{\b0 for}{\b0 proven}{\b0 solutions}{\b0 and}{\b0 best }
{\b0 practices }
{\b0 Subscribe}{\b0 to}{\b0 product-related}{\b0 information }
{\b0 and}{\b0 software}{\b0 patches }
{\b0 Access}{\b0 knowledge}{\b0 tools}{\b0 useful}{\b0 in }
{\b0 completing}{\b0 service}{\b0 orders }
{\b0 Integrating}{\b0 customer}{\b0 data}{\b0 into}{\b0 a}{\b0
single }
{\b0 database}{\b0 allows}{\b0 marketing}{\b0 teams,}{\b0 sales }
{\b0 force,}{\b0 and}{\b0 other}{\b0 departments}{\b0 within}{\b0
a }
{\b0 company}{\b0 share}{\b0 information}{\b0 and}{\b0 work }
{\b0 toward}{\b0 common}{\b0 corporate}{\b0 objectives}{\b0 using }
{\b0 the}{\b0 same}{\b0 underlying}{\b0 statistics. }\par
}
Greater efficiency and costs reduction \par
}
18 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
Adapted from Scullin,S., Allotra, J., Lloyd, G.O. and Fjermestad, J. (2002),
Electronic customer
relationship management: benefits, consideration, pitfalls and trends; Proceedings
of the IS One World
Conference, Las Vegas, Nevada, 3-5 April, CD-ROM. \par
}
Hoffman and Kashmeri (2000) argue that one of the benefits of a CRM initiative is
the
reduction of inventory across board. According to Morelli, Clark and Tesler, (2001)

benefits and value of eCRM is very clear. They state that, eCRM involves the
application of techniques and technologies to maximise mind share, market
share
wallet share across the three key customer facing business functions; namely,
emarketing, esales and eservice. They argue that, a successful ebusiness
will
acquire and convert a customer once but serve a customer several times. This they
\par}{\phpg\posx1417\pvpg\posy3059\absw9286\absh5953 \sl-275 \f10 \fs21 \cf0 say
could be seen in cross-selling and up-selling. They go on to state that, customers
\par}{\phpg\posx1417\pvpg\posy3059\absw9286\absh5953 \sl-275 \f10 \fs21 \cf0 will
increasingly tend to spend their money on relationships with companies they trust
that can the right products and services at the right time through the
right
channels and therefore companies that develop close, high-integrity
relationships
their customers will grow and thereby prosper. Again they add that a
recent
\par}{\phpg\posx1417\pvpg\posy3059\absw9286\absh5953 \sl-274 \f10 \fs21 \cf0 report
by Andersen Consulting research demonstrates the value of eCRM. This study
\par}{\phpg\posx1417\pvpg\posy3059\absw9286\absh5953 \sl-275 \f10 \fs21 \cf0 they
say found that a typical $ 1 billion company could increase
profitability by as
\par}{\phpg\posx1417\pvpg\posy3059\absw9286\absh5953 \sl-275 \f10 \fs21 \cf0 much
as $150 million a year by achieving top performance in eCRM
capabilities.
\par}{\phpg\posx1417\pvpg\posy3059\absw9286\absh5953 \sl-275 \f10 \fs21 \cf0 Again
they indicate that, it will help in achieving improvements in customer interaction
capabilities. They also state that, it will offer companies an effective means to
retain
serve existing customers, and also to reduce costs and to
differentiate
themselves from their competitors and thereby giving the organisation a competitive

advantage. Furthermore, eCRM capabilities also help a company to sell to
new
customers. With the Internet and the potential power of its existence anywhere, any
\par}{\phpg\posx1417\pvpg\posy3059\absw9286\absh5953 \sl-275 \f10 \fs21 \cf0 time

customer service will help companies to acquire and to retain customers.
However, they lamented that failing to use emerging technologies with the
CRM
\par}{\phpg\posx1417\pvpg\posy3059\absw9286\absh5953 \sl-275 \f10 \fs21 \cf0 could
risk a company retention rates and ultimately, its market viability. \par
}
{\phpg\posx1417\pvpg\posy10199\absw9231\absh4516 \b \f10 \fs21 \cf0 \fi67 \b
\f10 \fs21 \cf0 2.3 Summary and Conclusion of the Literature Review
\cf0 {\b0 In}{\b0 this}{\b0 section,}{\b0 we}{\b0 have}{\b0 briefly}{\b0
tried}{\b0 to}{\b0 discuss}{\b0 some}{\b0 of}{\b0 the}{\b0 major}{\b0 and}
{\b0 relevant}{\b0 studies }
{\b0 addressing}{\b0 the}{\b0 objectives}{\b0 and}{\b0 strategies}{\b0 and}
{\b0 the}{\b0 benefits}{\b0 of}{\b0 CRM}{\b0 initiatives.}{\b0 It}{\b0 has }
{\b0 come}{\b0 out}{\b0 of}{\b0 the}{\b0 literature}{\b0 review}{\b0 that,}
{\b0 at}{\b0 least}{\b0 there}{\b0 has}{\b0 been}{\b0 some}{\b0 studies}{\b0
on}{\b0 the }
{\b0 area;}{\b0 however,}{\b0 it}{\b0 is}{\b0 very}{\b0 difficult}{\b0 to}
{\b0 come}{\b0 by}{\b0 one}{\b0 study}{\b0 that}{\b0 is}{\b0 addressing}{\b0
the}{\b0 issue}{\b0 of }
{\b0 CRM}{\b0 objectives,}{\b0 strategies}{\b0 and}{\b0 initiatives}{\b0
and}{\b0 the}{\b0 benefits}{\b0 at}{\b0 the}{\b0 same}{\b0 time. }
{\b0 Throughout}{\b0 the}{\b0 reading}{\b0 and}{\b0 searching}{\b0 for}
{\b0 the}{\b0 relevant}{\b0 theory,}{\b0 we}{\b0 found}{\b0 out}{\b0
that }
{\b0 although}{\b0 there}{\b0 has}{\b0 been}{\b0 some}{\b0 studies,}{\b0
it}{\b0 is}{\b0 very}{\b0 scattered}{\b0 and}{\b0 it}{\b0 has}{\b0
been}{\b0 very }
{\b0 difficult}{\b0 to}{\b0 gather}{\b0 all}{\b0 the}{\b0 above}{\b0 from}
{\b0 various}{\b0 authors}{\b0 and}{\b0 put}{\b0 it}{\b0 together}{\b0 as}
{\b0 one}{\b0 theory. }
\cf0 {\b0 Throughout}{\b0 our}{\b0 reading}{\b0 and}{\b0 search}{\b0 for}{\b0
the}{\b0 relevant}{\b0 theory}{\b0 for}{\b0 this}{\b0 study,}{\b0 we}{\b0
realised }
{\b0 that,}{\b0 most}{\b0 of}{\b0 the}{\b0 studies}{\b0 that}{\b0 talk}{\b0
about}{\b0 objectives}{\b0 and}{\b0 strategies}{\b0 of}{\b0 CRM}{\b0
initiatives }
{\b0 dwelt}{\b0 so}{\b0 much}{\b0 on}{\b0 the}{\b0 following:}{\b0
Customer}{\b0 identification,}{\b0 customer}{\b0 differentiation, }
{\b0 customer}{\b0 interaction}{\b0 and}{\b0 personalization}{\b0 or}{\b0
customization.}{\b0 Further}{\b0 more,}{\b0 we}{\b0 came}{\b0 to }
{\b0 the}{\b0 conclusion}{\b0 that,}{\b0 those}{\b0 authors}{\b0 who}{\b0
talked}{\b0 about}{\b0 the}{\b0 benefits}{\b0 of}{\b0 the}{\b0 CRM }
{\b0 initiatives}{\b0 were}{\b0 very}{\b0 particular}{\b0 about}{\b0 these}
{\b0 issues,}{\b0 namely:}{\b0 revenue}{\b0 and}{\b0 profitability }
{\b0 enhancement,}{\b0 cost}{\b0 savings}{\b0 and}{\b0 reductions}{\b0 and}
{\b0 organisational}{\b0 impact. }\par
}
19 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
Further more, in our readings in search for relevant literature for this research,
we
\par}{\phpg\posx1417\pvpg\posy1697\absw9276\absh4462 \sl-275 \f10 \fs21 \cf0 found
out that, although there has been some studies on this area, however, it was
\par}{\phpg\posx1417\pvpg\posy1697\absw9276\absh4462 \sl-275 \f10 \fs21 \cf0 very
difficult for us to lay hands on one single study that has put
together the
objectives and strategies and the intended benefits of these CRM initiatives in one

theory. In our opinion, we think that it will be interesting to have a one single
theory
encompasses the objectives and strategies of CRM and the intended benefits. In
\par}{\phpg\posx1417\pvpg\posy1697\absw9276\absh4462 \sl-275 \f10 \fs21 \cf0 other
words, what motivate organisations to embark on these CRM strategies and
initiatives.
Therefore, based on the above discussions, the following research
questions are
proposed:
{\b 2.4}{\b Research}{\b Questions }
\fi67 1. How can the objectives and strategies of CRM initiatives by
organisations be
described?
\fi67 2. How can the expected benefits of CRM initiatives by organisations be
described? \par
}
20 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\cf0 3 Conceptual Framework
{\b0\i The}{\b0\i previous}{\b0\i chapter}{\b0\i provided}{\b0\i a}{\b0\i
brief}{\b0\i review}{\b0\i of}{\b0\i literature}{\b0\i related}{\b0\i to}
{\b0\i our}{\b0\i research }
{\b0\i questions.}{\b0\i This}{\b0\i chapter}{\b0\i will}{\b0\i provide}
{\b0\i the}{\b0\i conceptualisation,}{\b0\i which}{\b0\i constitutes}{\b0\i
the }
{\b0\i frame}{\b0\i of}{\b0\i reference}{\b0\i for}{\b0\i this}{\b0\i study.}
{\b0\i The}{\b0\i main}{\b0\i aim}{\b0\i of}{\b0\i this}{\b0\i chapter}{\b0\i
is}{\b0\i to}{\b0\i select}{\b0\i relevance }
{\b0\i theories}{\b0\i and}{\b0\i concepts}{\b0\i that}{\b0\i will}{\b0\i
be}{\b0\i used}{\b0\i in}{\b0\i this}{\b0\i study.}{\b0\i The}{\b0\i
frame}{\b0\i of}{\b0\i reference}{\b0\i will }
{\b0\i therefore}{\b0\i guide}{\b0\i us}{\b0\i in}{\b0\i the}{\b0\i
collection}{\b0\i of}{\b0\i data}{\b0\i and}{\b0\i it}{\b0\i will}{\b0\i
also}{\b0\i help}{\b0\i us}{\b0\i to}{\b0\i fulfil}{\b0\i the}{\b0\i
purpose }
{\b0\i of}{\b0\i gaining}{\b0\i better}{\b0\i understanding}{\b0\i of}{\b0\i
the}{\b0\i objectives}{\b0\i and}{\b0\i expected}{\b0\i type}{\b0\i of}{\b0\i
benefits}{\b0\i that }
{\b0\i organisations}{\b0\i intend}{\b0\i to}{\b0\i derive}{\b0\i from}{\b0\i
their}{\b0\i CRM}{\b0\i initiatives. }
3.1 Conceptualisation
{\b0 According}{\b0 to}{\b0 Miles}{\b0 and}{\b0 Huberman}{\b0 (1994,}{\b0
pp.18)}{\b0 a}{\b0 conceptual}{\b0 framework:}{\b0 shows, }
{\b0 either}{\b0 graphical}{\b0 and}{\b0 or}{\b0 in}{\b0 a}{\b0
narrative}{\b0 form,}{\b0 the}{\b0 main}{\b0 things}{\b0 items}{\b0 or}
{\b0 areas}{\b0 to}{\b0 be }
{\b0 studied.}{\b0 We}{\b0 will}{\b0 start}{\b0 by}{\b0 presenting}{\b0
theories}{\b0 that}{\b0 are}{\b0 relevant}{\b0 and}{\b0 are}{\b0 connected}
{\b0 to }
{\b0 the}{\b0 first}{\b0 research}{\b0 question,}{\b0 how}{\b0 can}{\b0 the}
{\b0 objectives,}{\b0 strategies}{\b0 of}{\b0 CRM}{\b0 initiatives}{\b0 by }
{\b0 organisations}{\b0 be}{\b0 described?}{\b0 And}{\b0 then}{\b0 it}{\b0
will}{\b0 be}{\b0 followed}{\b0 by}{\b0 theories}{\b0 relevant}{\b0 and}{\b0
are }
{\b0 connected}{\b0 to}{\b0 our}{\b0 second}{\b0 research}{\b0 question,}{\b0
how}{\b0 can}{\b0 the}{\b0 expected}{\b0 benefits}{\b0 of}{\b0 CRM }
{\b0 initiatives}{\b0 by}{\b0 organisations}{\b0 be}{\b0 described?}{\b0 are}
{\b0 presented. }
3.2 Objectives and strategies of CRM initiatives
{\b0 This}{\b0 part,}{\b0 the}{\b0 conceptualisation}{\b0 will}{\b0 focus}{\b0
on}{\b0 the}{\b0 first}{\b0 research}{\b0 question.}{\b0 The}{\b0 selected }
{\b0 theories}{\b0 are}{\b0 of}{\b0 much}{\b0 importance}{\b0 in}{\b0
order}{\b0 to}{\b0 be}{\b0 able}{\b0 to}{\b0 answer}{\b0 how}{\b0
can}{\b0 the }
{\b0 objectives,}{\b0 strategies}{\b0 of}{\b0 CRM}{\b0 initiatives}{\b0 by}
{\b0 organisations}{\b0 be}{\b0 described?}{\b0 To}{\b0 make}{\b0 this }
{\b0 research}{\b0 question}{\b0 more}{\b0 clear}{\b0 and}{\b0 easy}{\b0
to}{\b0 grasp}{\b0 and}{\b0 understand,}{\b0 we}{\b0 will}{\b0 use}{\b0
the }
{\b0 following}{\b0 sources.}{\b0 Peppers}{\b0 (1999)}{\b0 divided}{\b0 the}
{\b0 objectives}{\b0 and}{\b0 strategies}{\b0 of}{\b0 CRM}{\b0 into }
{\b0 four}{\b0 categories}{\b0 as}{\b0 follows:}{\b0 Customer}{\b0
identification,}{\b0 customer}{\b0 differentiation,}{\b0 customer }
{\b0 interaction}{\b0 and}{\b0 personalisation.}{\b0 Therefore}{\b0 we}{\b0
have}{\b0 decided}{\b0 to}{\b0 divide}{\b0 the}{\b0 first }
{\b0 research}{\b0 question}{\b0 into}{\b0 four}{\b0 categories}{\b0 as}{\b0
suggested}{\b0 by}{\b0 Peppers. }\par
}
\fs21 \cf0 3.2.1 Customer identification
\cf0 \fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Identify}{\b0 customers}{\b0
via}{\b0 marketing}{\b0 channels}{\b0 (Peppers}{\b0 1999) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 To}{\b0 acquire}{\b0 new}{\b0
customers}{\b0 (Thompson}{\b0 2004) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Discover}{\b0 new}{\b0 customers}
{\b0 (Deck}{\b0 2004) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Acquiring}{\b0 new}{\b0 customers}
{\b0 (Kim,Suh}{\b0 and}{\b0 Hwang}{\b0 2003) }\par
}
\fs21 \cf0 3.2.2 Customer differentiation
\cf0 \fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Differentiate}{\b0 customers}
{\b0 with}{\b0 respect}{\b0 to}{\b0 profitability}{\b0 (Chye}{\b0 and}{\b0
Gerry}{\b0 2002) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Each}{\b0 customer}{\b0 has}{\b0
his}{\b0 or}{\b0 her}{\b0 own}{\b0 unique}{\b0 needs}{\b0 and}{\b0 demands}
{\b0 (Peppers }
\fi1080 {\b0 1999) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Use}{\b0 service}{\b0 to}{\b0
differentiate}{\b0 products}{\b0 (Ryals}{\b0 and}{\b0 Knox}{\b0 2001) }\par
}
21 \par
}
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10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\fs21 \cf0 3.2.3 Customer Interaction
\cf0 \fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Organisations}{\b0 should}{\b0
continuously}{\b0 learn}{\b0 about}{\b0 its}{\b0 customer}{\b0 (Peppers }
\fi1080 {\b0 1999) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Improve}{\b0 and}{\b0 increase}
{\b0 communication}{\b0 between}{\b0 a}{\b0 company}{\b0 and}{\b0
its }
\fi1080 {\b0 customers}{\b0 (Xu}{\b0 2002) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Responding}{\b0 appropriately}{\b0
to}{\b0 customer}{\b0 request}{\b0 (Kim,Suh}{\b0 and}{\b0 Hwang}{\b0 2003) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Building}{\b0 an}{\b0 attractive}
{\b0 virtual}{\b0 community}{\b0 (Kim,}{\b0 Suh}{\b0 and}{\b0 Hwang}{\b0
2003) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Establishing}{\b0 relationship}{\b0
with}{\b0 customers}{\b0 (Kim,}{\b0 Suh}{\b0 and}{\b0 Hwang}{\b0 2003) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Improve}{\b0 interaction}{\b0 with}
{\b0 customers}{\b0 (Xu}{\b0 2002) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Keeping}{\b0 track}{\b0 with}{\b0
customers}{\b0 (Patton}{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Ecommunications}{\b0 (Morelli,}{\b0
Clark}{\b0 and}{\b0 Tesler}{\b0 2001) }
\cf0 3.2.4 Personalisation
\cf0 \fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Treating}{\b0 each}{\b0
customer}{\b0 uniquely}{\b0 (Peppers}{\b0 1999) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Customizing}{\b0 products}{\b0 and}
{\b0 services}{\b0 (Kim,}{\b0 Suh}{\b0 and}{\b0 Hwang}{\b0 2003) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Ensure}{\b0 that}{\b0 the}{\b0
customer}{\b0 receives}{\b0 personalised}{\b0 product}{\b0 offers}{\b0
(Dyche }
\fi1080 {\b0 2001) }
\cf0 \fi134 3.3 Benefits of CRM
\cf0 {\b0 This}{\b0 part}{\b0 deals}{\b0 with}{\b0 the}{\b0 second}{\b0
research}{\b0 question.}{\b0 The}{\b0 selected}{\b0 theories}{\b0 are}
{\b0 of }
{\b0 importance}{\b0 in}{\b0 order}{\b0 to}{\b0 be}{\b0 able}{\b0 to}
{\b0 answer}{\b0 the}{\b0 how}{\b0 can}{\b0 the}{\b0 expected}{\b0
benefits }
{\b0 organisations}{\b0 intend}{\b0 to}{\b0 derive}{\b0 from}{\b0 their}{\b0
CRM}{\b0 initiatives}{\b0 be}{\b0 described?}{\b0 This}{\b0 section }
{\b0 has}{\b0 also}{\b0 being}{\b0 divided}{\b0 into}{\b0 three}{\b0
categories:}{\b0 revenue}{\b0 and}{\b0 profitability}{\b0 enhancement, }
{\b0 cost}{\b0 savings}{\b0 and}{\b0 reductions}{\b0 and}{\b0
organisational}{\b0 impact.}{\b0 Under}{\b0 this}{\b0 section,}{\b0 the }
{\b0 following}{\b0 sources}{\b0 were}{\b0 utilised: }
\cf0 3.3.1 Revenue and profitability enhancement
\cf0 \fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Improve}{\b0 the}{\b0 ability}
{\b0 to}{\b0 acquire}{\b0 and}{\b0 retain}{\b0 customers}{\b0 (Gray}{\b0
&Byun}{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Cross}{\b0 selling}{\b0 (Gray}{\b0
&Byun}{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Maximising}{\b0 share}{\b0 of}{\b0
wallet}{\b0 (Gray}{\b0 &Byun}{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Creating}{\b0 loyalty}{\b0 and}{\b0
increasing}{\b0 profit}{\b0 (Newell}{\b0 2000) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Maximise}{\b0 the}{\b0 lifetime}
{\b0 value}{\b0 of}{\b0 customers}{\b0 (Gray}{\b0 &Byun}{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Higher}{\b0 customer}{\b0
retention}{\b0 and}{\b0 loyalty}{\b0 (Swift}{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Increased}{\b0 customer}{\b0
profitability}{\b0 (Swift}{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Higher}{\b0 customer}{\b0
profitability}{\b0 (Wilson,}{\b0 Daniel}{\b0 and}{\b0 McDonald}{\b0 2002) }
\cf0 3.3.2 Cost saving and reduction
\cf0 \fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Improve}{\b0 service}{\b0
without}{\b0 increasing}{\b0 cost}{\b0 of}{\b0 service}{\b0 (Gray}{\b0 &Byun}
{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Cost}{\b0 effective}{\b0 marketing}
{\b0 campaign}{\b0 (Gray}{\b0 &Byun}{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Cost}{\b0 effective}{\b0 customer}
{\b0 service}{\b0 (Gray}{\b0 &Byun}{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Reduce}{\b0 cost}{\b0 of}{\b0
sales}{\b0 (Swift}{\b0 2001) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Lower}{\b0 cost}{\b0 of}{\b0
recruiting}{\b0 customers}{\b0 (Swift}{\b0 2001) }\par
}
22 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
{\phpg\posx1417\pvpg\posy1699\absw9279\absh3526 \b \f10 \fs21 \cf0 \fi59 \b \f10
\fs21 \cf0 3.3.3 Organisational impact
\fi719 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Organisations}{\b0 manage}{\b0
customer}{\b0 relationships}{\b0 effectively}{\b0 (Jiang}{\b0 2003) }
\fi719 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Brand}{\b0 loyalty}{\b0 (Jiang}{\b0
2003) }
\fi719 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Competitive}{\b0 advantage}{\b0
(Thompson}{\b0 2004) }
\fi720 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Positive}{\b0 impact}{\b0 on}{\b0
the}{\b0 company's}{\b0 performance}{\b0 (Thompson}{\b0 2004) }
{\b0 Our}{\b0 motive}{\b0 for}{\b0 using}{\b0 the}{\b0 above}{\b0
mentioned}{\b0 theories}{\b0 are}{\b0 due}{\b0 to}{\b0 the}{\b0 fact}
{\b0 that}{\b0 they }
{\b0 complement}{\b0 each}{\b0 other,}{\b0 the}{\b0 objectives}{\b0 and}{\b0
strategies}{\b0 and}{\b0 the}{\b0 expected}{\b0 benefits}{\b0 of }
{\b0 CRM}{\b0 initiatives.}{\b0 The}{\b0 objectives}{\b0 and}{\b0 strategies}
{\b0 stated}{\b0 by}{\b0 different}{\b0 authors}{\b0 sometimes }
{\b0 describe}{\b0 the}{\b0 same}{\b0 thing}{\b0 or}{\b0 the}{\b0 same}{\b0
objective}{\b0 or}{\b0 strategy}{\b0 in}{\b0 different}{\b0 words,}{\b0 for}
{\b0 this }
{\b0 reason,}{\b0 we}{\b0 have}{\b0 chosen}{\b0 to}{\b0 exclude}{\b0 some}
{\b0 of}{\b0 the}{\b0 objectives}{\b0 and}{\b0 strategies}{\b0 and}{\b0 some
}
{\b0 of}{\b0 the}{\b0 benefits}{\b0 from}{\b0 our}{\b0 frame}{\b0 of}{\b0
reference}{\b0 because}{\b0 of}{\b0 their}{\b0 similarity}{\b0 to}{\b0 one}
{\b0 of}{\b0 the }
{\b0 objectives}{\b0 and}{\b0 strategies}{\b0 and}{\b0 the}{\b0 benefits}{\b0
mentioned}{\b0 above. }\par
}
\cf0 3.4 Emerged Frame of Reference
{\b0 In}{\b0 this}{\b0 section,}{\b0 we}{\b0 will}{\b0 present}{\b0 our}{\b0
emerged}{\b0 frame}{\b0 of}{\b0 reference.}{\b0 Figure}{\b0 3.1}{\b0 and}{\b0
3.2 }
\par}{\phpg\posx1417\pvpg\posy6178\absw9260\absh985 \sl-275 \b \f10 \fs21 \cf0 {\b0
visualise}{\b0 our}{\b0 frame}{\b0 of}{\b0 reference. }\par
}
\cf0 Figure 3. 1: frame of reference
\cf0 \fi2001 {\b0 Customer}{\b0 Relationship}{\b0 Management }\par
}
Objectives and strategies of Customer Relationship Management \par
}
Benefits of Customer Relationship Management \par
}
23 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\cf0 Figure 3.2 \par
}
\cf0 RESEARCH QUESTION 1: Objectives and strategies of CRM initiatives \par
}
\f20 \fs21 \cf0 Customer
\fi409 Identification
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Identify}{\b0 customers }
\fi321 {\b0 via}{\b0 marketing }
\fi321 {\b0 channels }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 To}{\b0 acquire}{\b0 new }
\fi321 {\b0 customers }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Discover}{\b0 new }
\fi321 {\b0 customers }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Acquiring}{\b0 new }
\fi321 {\b0 customers }\par
}
\cf0 RESEARCH QUESTION 1: strategies of CRM
\par}{\phpg\posx3421\pvpg\posy3347\absw5557\absh710 \sl-252 \par\b\i \f20 \fs23
\cf0 \fi966 {\i0 \fs21 Customer }\par
}
\f20 \fs21 \cf0 Differentiation
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Differentiate }
\fi252 {\b0 customers}{\b0 with }
\fi252 {\b0 respect}{\b0 to }
\fi252 {\b0 profitability }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Each}{\b0 customer}{\b0 has }
\fi252 {\b0 his}{\b0 or}{\b0 her}{\b0 own }
\fi252 {\b0 unique}{\b0 needs}{\b0 and }
\fi252 {\b0 demands. }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Use}{\b0 service}{\b0 to }
\fi252 {\b0 differentiate }
\fi252 {\b0 products. }\par
}
\f20 \fs21 \cf0 Customer Interaction
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Organisations}{\b0 should }
\fi291 {\b0 continuously}{\b0 learn}{\b0 about }
\fi291 {\b0 its}{\b0 customer. }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Improve}{\b0 and}{\b0 increase }
\fi291 {\b0 communication}{\b0 between }
\fi291 {\b0 a}{\b0 company}{\b0 and}{\b0 its }
\fi291 {\b0 customers. }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Responding }
\fi291 {\b0 appropriately}{\b0 to }
\fi291 {\b0 customer}{\b0 request. }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Building}{\b0 an}{\b0 attractive }
\fi291 {\b0 virtual}{\b0 community. }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Establishing }
\fi291 {\b0 relationship}{\b0 with }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Improve}{\b0 interaction }
\fi291 {\b0 with}{\b0 customers. }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Keeping}{\b0 track}{\b0 with }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Ecommunications }\par
}
\fs21 \cf0 Personalisation
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Treating}{\b0 each }
\fi252 {\b0 customer }
\fi252 {\b0 uniquely. }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Customizing }
\fi252 {\b0 products}{\b0 and }
\fi252 {\b0 services }
{\f0\fs28 \bullet }{\b0 \f40 }{\b0 Ensure}{\b0 that }
\fi252 {\b0 the}{\b0 customer }
\fi252 {\b0 receives }
\fi252 {\b0 personalised }
\fi252 {\b0 product}{\b0 offers }\par
}
24 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\cf0 RESEARCH QUESTION 2: Benefits of CRM \par
}
{\phpg\posx1417\pvpg\posy2048\absw3160\absh4658 \b\i \f20 \fs21 \cf0 \b\i \f20
\fs21 \cf0 Revenue and profitability
\par}{\phpg\posx1417\pvpg\posy2048\absw3160\absh4658 \sl-275 \b\i \f20 \fs21 \cf0
enhancement
{\f0\fs27 \bullet }{\b0\i0 \f40 }{\b0\i0 Improve}{\b0\i0 the}{\b0\i0
ability}{\b0\i0 to }
\par}{\phpg\posx1417\pvpg\posy2048\absw3160\absh4658 \sl-274 \b\i \f20 \fs21
\cf0 \fi360 {\b0\i0 acquire}{\b0\i0 and}{\b0\i0 retain }
\cf0 \fi360 {\b0\i0 customers }
{\f0\fs27 \bullet }{\b0\i0 \f40 }{\b0\i0 Cross}{\b0\i0 selling }
{\f0\fs27 \bullet }{\b0\i0 \f40 }{\b0\i0 Maximising}{\b0\i0 share}{\b0\i0 of
}
\cf0 \fi360 {\b0\i0 wallet }
{\f0\fs27 \bullet }{\b0\i0 \f40 }{\b0\i0 Creating}{\b0\i0 loyalty}{\b0\i0
and }
\cf0 \fi360 {\b0\i0 increasing}{\b0\i0 profit }
{\f0\fs27 \bullet }{\b0\i0 \f40 }{\b0\i0 Maximise}{\b0\i0 the}{\b0\i0
lifetime }
\cf0 \fi360 {\b0\i0 value}{\b0\i0 of}{\b0\i0 customers }
{\f0\fs27 \bullet }{\b0\i0 \f40 }{\b0\i0 Higher}{\b0\i0 customer}{\b0\i0
retention }
\cf0 \fi360 {\b0\i0 and}{\b0\i0 loyalty }
{\f0\fs27 \bullet }{\b0\i0 \f40 }{\b0\i0 Increased}{\b0\i0 customer }
\cf0 \fi360 {\b0\i0 profitability }
{\f0\fs27 \bullet }{\b0\i0 \f40 }{\b0\i0 Higher}{\b0\i0 customer }
\cf0 \fi360 {\b0\i0 profitability }\par
}
\cf0 Cost savings and reduction \par
}
\cf0 Organisational impact \par
}
\bullet }\f40 \fs21 \cf0 {\f20 Improve}{\f20 service}{\f20 without}
{\f63 \u8226\'3f}{\f20 Organisations }\par
}
\cf0 increasing cost of service
{\f0\fs27 \bullet }{\f40 } Cost effective marketing
campaign \par
}
\cf0 customer
effectively
{\f0\fs27 \bullet }{\f40 } Brand loyalty \par
}
\cf0 manage
relationships \par
}
\bullet }\f40 \fs21 \cf0 {\f20 Cost}{\f20 effective}{\f20 customer}
{\f63 \u8226\'3f}{\f20 Competitive}{\f20 advantage }\par
}
\fs21 \cf0 service
{\f0\fs27 \bullet }{\f40 } Reduce cost of sales
{\f0\fs27 \bullet }{\f40 } Lower cost of recruiting
customers \par
}
\bullet }\f40 \fs21 \cf0 {\f20 Positive}{\f20 impact}{\f20 on}{\f20
the }
{\f20 company's}{\f20 performance }\par
}
{\phpg\posx1417\pvpg\posy8091\absw9551\absh735 \f20 \fs21 \cf0 \f20 \fs21 \cf0 The
research framework shows the relationship between all the
variables, the
interconnectivity between all the variables, that is the strategies and objectives
of CRM and
benefits organisations derive from it. \par
}
25 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\cf0 4 RESEARCH METHODOLOGY
{\b0\i The}{\b0\i previous}{\b0\i chapter}{\b0\i showed}{\b0\i how}
{\b0\i the}{\b0\i literature}{\b0\i has}{\b0\i been}{\b0\i
condensed}{\b0\i and }
{\b0\i conceptualized}{\b0\i in}{\b0\i this}{\b0\i study}{\b0\i and}{\b0\i
provided}{\b0\i a}{\b0\i visual}{\b0\i explanation}{\b0\i of}{\b0\i the}{\b0\i
emerged}{\b0\i frame }
{\b0\i of}{\b0\i reference.}{\b0\i This}{\b0\i chapter}{\b0\i covers}{\b0\i
the}{\b0\i methodology}{\b0\i used}{\b0\i in}{\b0\i this}{\b0\i
research.}{\b0\i The }
{\b0\i selection}{\b0\i of}{\b0\i methodology}{\b0\i is}{\b0\i based}{\b0\i
on}{\b0\i the}{\b0\i research}{\b0\i problem}{\b0\i and}{\b0\i stated}
{\b0\i research }
{\b0\i questions}{\b0 . }
4.1 Introduction
{\b0 According}{\b0 to}{\b0 Nachamias}{\b0 et}{\b0 al}{\b0 (1996)}{\b0
methodologies}{\b0 are}{\b0 considered}{\b0 to}{\b0 be}{\b0 systems}{\b0 of }
{\b0 explicit}{\b0 rules}{\b0 and}{\b0 produced,}{\b0 upon}{\b0 which}{\b0
research}{\b0 is}{\b0 based,}{\b0 and}{\b0 against}{\b0 which}{\b0 claims }
{\b0 for}{\b0 knowledge}{\b0 are}{\b0 evaluated.}{\b0 Elabi}{\b0 et}{\b0
al}{\b0 (2002)}{\b0 argue}{\b0 that}{\b0 conducting}{\b0 any}{\b0 type}
{\b0 of }
{\b0 research}{\b0 should}{\b0 be}{\b0 governed}{\b0 by}{\b0 a}{\b0
well-defined}{\b0 research}{\b0 methodology}{\b0 based}{\b0 on }
{\b0 scientific}{\b0 principles. }
4.2 Research Strategy
{\b0 According}{\b0 to}{\b0 Denscombe}{\b0 (2000,}{\b0 p3-68)}{\b0 there}{\b0
are}{\b0 five}{\b0 different}{\b0 research}{\b0 strategies}{\b0 to }
{\b0 choose}{\b0 from.}{\b0 They}{\b0 are}{\b0 as}{\b0 follows: }
\fi360 {\f0\fs27 \bullet }{\b0 \f40 }{\b0 Surveys }
\fi360 {\f0\fs27 \bullet }{\b0 \f40 }{\b0 Case}{\b0 studies }
\fi360 {\f0\fs27 \bullet }{\b0 \f40 }{\b0 Experiments }
\fi360 {\f0\fs27 \bullet }{\b0 \f40 }{\b0 Action}{\b0 research}{\b0 and }
\fi360 {\f0\fs27 \bullet }{\b0 \f40 }{\b0 Ethnographic}{\b0 (ibid). }\par
}
\cf0 Table 4.1: Situation for different Research Strategies \par
}
\cf0 Research Strategy \par
}
\cf0 Forms of Research
Question \par
}
1...1
Survey \par
}
Experiments \par
}
Archival/ Analysis
History
\par}{\phpg\posx1417\pvpg\posy11387\absw1927\absh1042 \sl-406 \f10 \fs21 \cf0 Case
studies \par
}
How/Why
Who/What/Where/How
many/How much
Who/What/Where/How
many/How much
How/Why
How/Why
\fi1075 {\fs17 Source:}{\fs17 Yin}{\fs17 1994,}{\fs17 pp.6. }\par
}
\cf0 Require control
over behavioural
Events
\fi719 {\b0 \fs21 Yes }
\fi772 {\b0 \fs21 No }
\fi772 {\b0 \fs21 No }
\fi771 {\b0 \fs21 No }
\fi772 {\b0 \fs21 No }\par
}
\cf0 Focus on
contemporary
Events
\fi759 {\b0 Yes }
\fi759 {\b0 Yes }
\fi572 {\b0 Yes/No }
\fi811 {\b0 No }
\fi759 {\b0 Yes }\par
}
Denscombe (2000, p 41) indicates that, the primary aim or goal of undertaking case
studies is to have a general view by studying the specifics; again he states that,
case
studies are more holistic than focusing on certain details (ibid).
According to Yin
\par}{\phpg\posx1417\pvpg\posy14235\absw9287\absh986 \sl-275 \f10 \fs21 \cf0 (1994,
p 147) case studies are used to bring deeper understanding, insight
and \par
}
26 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
knowledge about particular selected cases to be undertaken. Yin (1994, p12) states
by using case study, the researcher can study few objects and items in
may
aspects.
The purpose of this study was to bring an insight and better
understanding of the
objectives, strategies and expected benefits of CRM initiatives in service
companies.
\par}{\phpg\posx1417\pvpg\posy1421\absw9743\absh10672 \sl-275 \f10 \fs21 \cf0 Due
to this reason, we did not have and require control over behavioural events. This
\par}{\phpg\posx1417\pvpg\posy1421\absw9743\absh10672 \sl-275 \f10 \fs21 \cf0 rules
out experiment as a research strategy. More over, we described
how
companies CRM objectives and the intended benefits. Again this makes
Historical
\par}{\phpg\posx1417\pvpg\posy1421\absw9743\absh10672 \sl-275 \f10 \fs21 \cf0 state
not appropriate either. Survey and analysis of archival records
are
advantageous when the research goal is to describe the incident or prevalence of a
phenomenon and also when it is to be predictive about certain
outcomes (Yin,
p 6-7). This is not what we wanted to do; therefore this leaves us with only one
research strategy, case study. Case study as a research strategy can be defined as
\par}{\phpg\posx1417\pvpg\posy1421\absw9743\absh10672 \sl-275 \f10 \fs21 \cf0 an
inquiry that investigates a contemporary phenomenon within its real-life context,
\par}{\phpg\posx1417\pvpg\posy1421\absw9743\absh10672 \sl-275 \f10 \fs21 \cf0 when
the boundaries between phenomenon and context are not clearly evidenced
which multiple sources are evidenced and used. Again (Yin1994) emphasise that
\par}{\phpg\posx1417\pvpg\posy1421\absw9743\absh10672 \sl-275 \f10 \fs21 \cf0 case
study has a distinct advantage when a 'how' or 'why' or in the case
of
exploratory 'what' question is being asked about contemporary sets of events over
the researcher has little or no control over the variables; again we were trying
answer 'how' questions so we think that case study was very appropriate for this
\par}{\phpg\posx1417\pvpg\posy1421\absw9743\absh10672 \sl-275 \f10 \fs21 \cf0 work.
Event though suspicion may exist using case study as a research strategy due
its unscientific fell, it can be a worthwhile way of exploring existing theory and
a
simple well-constructed case study can enable the research to challenge an existing

theory and also provide a source of new hypotheses. Another advantage of
using
study is the fact that, it enables an entire organisation to be subjected to an in-
\par}{\phpg\posx1417\pvpg\posy1421\absw9743\absh10672 \sl-275 \f10 \fs21 \cf0 depth

investigation (ibid).
From the above discussion, case study is considered the most appropriate
and
suitable research strategy for this work hence we decided to use case study. This
is
because it enabled us to unearth an insight and a deeper understanding
of the
objectives, strategies and intended benefits of CRM initiatives and
programs by
service companies particularly banks. In this particular study, three companies
that
using CRM programs, strategies and initiatives and are expecting some benefits
using CRM initiatives were considered.
Furthermore, one of the reasons why case study was used is that, the
research
questions were answered from the company's perspective. By studying from
this
perspective, we considered that, by gaining understanding of the case
companies
processes, relationships, attitude and over all way of dealing with its customers,
we
\par}{\phpg\posx1417\pvpg\posy1421\absw9743\absh10672 \sl-275 \f10 \fs21 \cf0 could
get a holistic picture of the selected cases. We could have used other
strategies like survey, experiments if the questions would have been answered from
customers' point of view. \par
}
\fs21 \cf0 4.3 Selection of Case Study
{\b0 According}{\b0 to}{\b0 Denscombe}{\b0 (2000,}{\b0 p}{\b0 33)}{\b0
the}{\b0 case}{\b0 study}{\b0 approach}{\b0 calls}{\b0 for}{\b0 the }
{\b0 researcher}{\b0 to}{\b0 make}{\b0 choices}{\b0 from}{\b0 among}{\b0
several}{\b0 numbers}{\b0 of}{\b0 possible}{\b0 events,}{\b0 people, }
{\b0 and}{\b0 organisations.}{\b0 He}{\b0 further}{\b0 postulated}{\b0 that,}
{\b0 the}{\b0 researcher}{\b0 have}{\b0 to}{\b0 pick}{\b0 one}{\b0 or}{\b0
just }
{\b0 a}{\b0 few}{\b0 from}{\b0 many}{\b0 examples}{\b0 from}{\b0 the}{\b0
group}{\b0 of}{\b0 things}{\b0 that}{\b0 are}{\b0 being}{\b0 studied:}{\b0
moreover, }\par
}
27 \par
}
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10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
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61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
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0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \f10 \fs21 \cf0 \f10 \fs21 \cf0 he
indicates that, what ever the case and the subject matter, the case study normally
depends on a deliberate and explicit choice about which case to select from among
numerous possibilities (ibid). Miles and Huberman 1994,p.27) postulated that, all
research, involves sampling. They further stated that, no study, whether
quantitative
qualitative, or both can include everything: 'you cannot study
everything
everywhere doing everything' (ibid). Multiple case studies was conducted
on three
service companies, preferably banks from each sample frame. Yin (1994) state that a

study research is considered to have a distinct advantage when a HOW or
\par}{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \sl-275 \f10 \fs21 \cf0 WHY

(or exploratory WHAT) question is asked about a contemporary set of events
\par}{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \sl-275 \f10 \fs21 \cf0 over
which the investigator has little or no control. Case studies have often
been
considered as a useful tool for the preliminary, exploratory stage of a research
project
(Rowley, 2002). We also believed that a multiple case study strategy and approach
\par}{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \sl-275 \f10 \fs21 \cf0 has
also helped us to further capture larger samples, attitudes and attitudes
and
activities, a deeper insight into the objectives and strategies and expected
benefits
organizations intend to derive from their CRM initiatives.
\fi67 According to Miles and Huberman (1994) a researcher can choose to
conduct
research on a single case or to conduct multiple case studies; In a
within case
analysis of this study, collected data is compared with previous theory
in order to
identify differences and similarities; The main aim and objective of doing a cross
case
analysis was to be able to compare the single cases with each other and to increase

generalization. The cross case analysis make it possible to observe if
the data
collected in separate organizations are diverse, typical and effective.
(ibid). In this
\par}{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \sl-275 \f10 \fs21 \cf0 study,
both within case analysis and a cross case analyses are conducted. First of
\par}{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \sl-275 \f10 \fs21 \cf0 all,
each case analyzed separately and compared to previous theories. This analysis
\par}{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \sl-275 \f10 \fs21 \cf0 is
followed the same structure as the frame of reference. Secondly, the three single
\par}{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \sl-275 \f10 \fs21 \cf0 cases
are compared with each other in a cross case analysis. This also followed the
\par}{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \sl-275 \f10 \fs21 \cf0 same
structure as in the frame of reference. We chose the three case companies
\par}{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \sl-275 \f10 \fs21 \cf0 from
the same industry, that is all the companies are banks so we can really have an
interesting cross case analysis since their activities and programs are very
similar. In
\par}{\phpg\posx1417\pvpg\posy1421\absw9356\absh8188 \sl-275 \f10 \fs21 \cf0 one
occasion, specifically at F�reningsSparbanken, the manager said that all banks
the same but it is the relationship between a bank staff and or a bank and its
customers that differentiate one bank from another. \par
}
\fs21 \cf0 4.4 Data collection
\cf0 {\b0 According}{\b0 to}{\b0 Denscombe}{\b0 (2000,}{\b0 p}{\b0 83-
158),}{\b0 there}{\b0 are}{\b0 four}{\b0 main}{\b0 methods}{\b0 for}
{\b0 data }
{\b0 collection;}{\b0 they}{\b0 are}{\b0 as}{\b0 follows: }
\fi424 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Questionnaires }
\fi424 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Interviews }
\fi424 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Observation}{\b0 and }
\fi424 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Documents; }
{\b0 According}{\b0 to}{\b0 Denscombe}{\b0 (2000,}{\b0 p}{\b0 83-158)}
{\b0 indicates}{\b0 that}{\b0 interviews}{\b0 are}{\b0 suitable }
{\b0 when}{\b0 there}{\b0 is}{\b0 the}{\b0 need}{\b0 to}{\b0 gather}
{\b0 detailed}{\b0 data}{\b0 and}{\b0 information}{\b0 from}{\b0 very}
{\b0 few }
{\b0 respondents,}{\b0 but}{\b0 one}{\b0 has}{\b0 to}{\b0 ask}{\b0 oneself}
{\b0 before}{\b0 conducting}{\b0 interviews}{\b0 whether}{\b0 his}{\b0 or }
{\b0 her}{\b0 study}{\b0 needs}{\b0 this}{\b0 type}{\b0 of}{\b0
information}{\b0 and}{\b0 if}{\b0 it}{\b0 will}{\b0 be}{\b0 possible}
{\b0 to}{\b0 rely}{\b0 on}{\b0 the }
{\b0 material}{\b0 these}{\b0 few}{\b0 respondents}{\b0 would}{\b0
provide}{\b0 the}{\b0 researcher}{\b0 with.}{\b0 Denscombe }
{\b0 (2000)}{\b0 further}{\b0 state}{\b0 that,}{\b0 semi}{\b0 structured}{\b0
questions}{\b0 as}{\b0 a}{\b0 list}{\b0 of}{\b0 subjects}{\b0 that}{\b0
will}{\b0 be }
{\b0 handled,}{\b0 but}{\b0 also}{\b0 the}{\b0 respondent}{\b0 would}{\b0
have}{\b0 to}{\b0 be}{\b0 able}{\b0 to}{\b0 speak}{\b0 freely}{\b0 without}
{\b0 any }\par
}
28 \par
}
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10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
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5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
restrictions and be able to develop their own thoughts, even if the researcher
decides
order of the questions. Denscombe (2000) believes that, interviews are the most
suitable when the collected data is based on privileged
knowledge, that is,
information from key persons or insider information (ibid).
In this project, we use data and information from the companies website
and
handouts on for example the background of the companies that we did choose for
case study are the sources of some of the data and also interview was also one
the source for the data. This is because we believe that it is the most appropriate

method for the study in order for us to bring better insight
and a deeper
understanding into the objectives, strategies and expected benefits of CRM
initiatives
organisations.
Denscombe (2000, p. 136) summarises the advantages of method of interview
as
follows:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Depth of information: Interviews help in
producing detail and in-depth with the
\fi720 subject or the topic. Topics can be pursued and issues probe for a long
time.
\fi360 {\f0\fs28 \bullet }{\f40 } Insights: The researcher gets insight
according to the data he or she gets from
\fi720 key persons (interviewee) in the organisation.
\fi360 {\f0\fs28 \bullet }{\f40 } Equipment: Interviews do not require any heavy
equipment and more to the
\fi720 point, the interviewer uses his or her already existing conversational
skills.
\fi360 {\f0\fs28 \bullet }{\f40 } Informants priorities: Interviewee have
the opportunity to use their own
\fi720 gumption and discretion to explain and expand ideas as they deem
what
\fi720 issues and factors as crucial and therefore important for them to bring out.

\fi360 {\f0\fs28 \bullet }{\f40 } Flexibility: Interview can be deemed as
the most flexible method of data
\fi720 collection.
\fi360 {\f0\fs28 \bullet }{\f40 } Validity: Accuracy and relevance regarding
data collected can be checked
\fi720 based on the direct contact at the point of the interview.
\fi360 {\f0\fs28 \bullet }{\f40 } High response rate: Relatively high
response rate is ensured since most
\fi720 interviews are prearranged and scheduled for a convenient time and location.

\fi360 {\f0\fs28 \bullet }{\f40 } Therapeutic: People always tend to enjoy the
interview experience because of
\fi720 the personal touch element; and people like to talk to people who
want to
\fi720 listen to their idea without being critical but rather is very interested in
the and
\fi720 would like to be noting the ideas down (ibid).
Based on the above advantages, in our in opinion, we think that, it is
worthwhile
\par}{\phpg\posx1417\pvpg\posy1421\absw9386\absh12528 \sl-275 \f10 \fs21 \cf0 using
the interview because we had access to privileged information due to the kind
people we had chance to talk to and also the kind of information that was given to
\par}{\phpg\posx1417\pvpg\posy1421\absw9386\absh12528 \sl-275 \f10 \fs21 \cf0 us.
We believe that without that kind of personal interactions with these key people,
\par}{\phpg\posx1417\pvpg\posy1421\absw9386\absh12528 \sl-275 \f10 \fs21 \cf0 we
would not have got access to that kind of indepth information.
Furthermore, we believe that it was really interesting to talk to people who really
want
people to listen to them for them to do all the talking and we showing a lot of
interest
\par}{\phpg\posx1417\pvpg\posy1421\absw9386\absh12528 \sl-275 \f10 \fs21 \cf0 in
the issues they were discussing. For instance one of the respondents said that it
\par}{\phpg\posx1417\pvpg\posy1421\absw9386\absh12528 \sl-275 \f10 \fs21 \cf0 was
good for him to talk to us because he thinks it is an opportunity for him to also
\par}{\phpg\posx1417\pvpg\posy1421\absw9386\absh12528 \sl-276 \f10 \fs21 \cf0 talk
to English speaking people and it is an opportunity for him to practice his English
\par}{\phpg\posx1417\pvpg\posy1421\absw9386\absh12528 \sl-275 \f10 \fs21 \cf0 on us

so he really enjoyed it.
\cf0 \fi67 We did contact key and the right people when it comes to CRM
in all the
organisations we studied. It was not very difficult to get the right
responds to our \par
}
29 \par
}
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010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
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0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
questions. This is because in all the companies that we conducted the
investigations
\par}{\phpg\posx1417\pvpg\posy1421\absw9319\absh10745 \sl-275 \f10 \fs21 \cf0 for
this study, we were able to get the people at the highest position so we believe
they had grips at what is going on in the companies and especially
when it
\par}{\phpg\posx1417\pvpg\posy1421\absw9319\absh10745 \sl-275 \f10 \fs21 \cf0 comes
to company strategies and CRM. Again we talked to at least two key people in
companies who actually either are in the helm of affairs and or deals
with
customers so we believe that they were able to give us the right kind of
information
were looking for. The interview was formulated by using a set of open-ended and
close-ended questions. Perry (1998) argues that probe questions about
research
issues must be prepared in case the interviewee does not raise them in
the first,
unstructured parts of the interview. The probe questions usually start with How, as
\par}{\phpg\posx1417\pvpg\posy1421\absw9319\absh10745 \sl-275 \f10 \fs21 \cf0 this

can definitely not be answered with a yes or a no (Easton 1994b) The
probe
questions formed the major parts of the prepared interview protocol (Yin 1994)
which
used to provide a reliable framework for cross-case analysis of data
(Perry,
1998).
Furthermore, each interview sought was on the basis of the interview guide, which
included among the issues below:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Initially gather information on the
background of each bank and the staff and
\fi720 the role they play in customer relationship management.
\fi360 {\f0\fs28 \bullet }{\f40 } How do they describe the objectives of their
CRM initiatives
\fi360 {\f0\fs28 \bullet }{\f40 } How they would achieve these objectives and
the expected benefits
\fi360 {\f0\fs28 \bullet }{\f40 } How they describe the strategies of their CRM
\fi360 {\f0\fs28 \bullet }{\f40 } How they describe the expected benefits of
their CRM initiatives
\cf0 \fi67 People with competence in the field of research and long research
experience did
examine the interview guide to make sure that all the issues addressed our research

questions. However necessary adjustments were made.
Again we believe that face-to-face interviews were very feasible in the frame of
this
\par}{\phpg\posx1417\pvpg\posy1421\absw9319\absh10745 \sl-275 \f10 \fs21 \cf0 study
since we talked to people at the Lulea branch of all the banks we investigated.
\par}{\phpg\posx1417\pvpg\posy1421\absw9319\absh10745 \sl-275 \f10 \fs21 \cf0 This
made it possible for us to visit all the respondents and to conduct face-to-face
interviews with them. All the interviews were conducted face to face and
a tape
recorder was used to accurately record and register the proceedings. We notified
all
respondents initially before we record. Further more, additional notes were taking
together with the recordings in order to facilitate cross-checking of the
information.
\par}{\phpg\posx1417\pvpg\posy1421\absw9319\absh10745 \sl-275 \f10 \fs21 \cf0 Each
interview covered about one hour. Immediately after the interview session, we
\par}{\phpg\posx1417\pvpg\posy1421\absw9319\absh10745 \sl-274 \f10 \fs21 \cf0 try
as much as possible to listen and read all the data we gathered. This is because,
wanted to keep it close to our mind and memory; we did not want time to pass
could make the analysis of the data even more difficult and sometimes
not
trustworthy. In this case we made sure that, all the data analysis were done as
soon
\par}{\phpg\posx1417\pvpg\posy1421\absw9319\absh10745 \sl-275 \f10 \fs21 \cf0 as
possible so that we can again use our minds and memory with the data
we
recorded and wrote. \par
}
\f10 \fs21 \cf0 4.5 Data Analysis
{\b0 According}{\b0 to}{\b0 Denscombe}{\b0 (2000,}{\b0 p.}{\b0 134)}{\b0
data}{\b0 analysis}{\b0 means}{\b0 that,}{\b0 the}{\b0 researcher}{\b0 is }
{\b0 deciding}{\b0 what}{\b0 and}{\b0 which}{\b0 meaning}{\b0 can}{\b0 be}
{\b0 attributed}{\b0 to}{\b0 the}{\b0 words}{\b0 and}{\b0 what}{\b0 are}{\b0
the }\par
}
30 \par
}
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10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
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0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
implications to that effect; and how does it relate to the topic being
investigated. In
study, we will undertake the analysis by dividing it according to our
research
questions and also comparing the data collected to the theory.
With regards to data analysis in this study, we first divided the data
collected into
categories or research areas that emerged during the data analysis
process. The
\par}{\phpg\posx1417\pvpg\posy1421\absw9249\absh4517 \sl-275 \f10 \fs21 \cf0 data
categories were further arranged into themes that corresponded to the research
questions and the areas of literature covered in chapter two. Again in our opinion,
we
\par}{\phpg\posx1417\pvpg\posy1421\absw9249\absh4517 \sl-275 \f10 \fs21 \cf0 think
that it was worthwhile and sufficient to do a cross case analysis to
highlight
variations and similarities between and among different samples and this present
the
results in an aggregated form, taking into consideration the respondents.
Further more, when presenting data in this study, attempt was made to write down
\par}{\phpg\posx1417\pvpg\posy1421\absw9249\absh4517 \sl-275 \f10 \fs21 \cf0 ideas
about analysis and conclusions coming out from during the early phase. Drafts
literature review and methodology sections were refined, re-written and sometimes
changed over and over again in order to parallel with data collected. In final
analysis,
results of the cross case analysis and the within case analysis mainly formed the
\par}{\phpg\posx1417\pvpg\posy1421\absw9249\absh4517 \sl-275 \f10 \fs21 \cf0 basis
of presenting the findings and conclusions of this study. \par
}
\cf0 4.6 Quality standards
4.6.1 Reliability
{\b0 Denscombe}{\b0 (2000,}{\b0 p.}{\b0 213-214)}{\b0 postulated}{\b0
that,}{\b0 reliability}{\b0 means}{\b0 whether}{\b0 the }
{\b0 research}{\b0 instruments}{\b0 are}{\b0 neutral}{\b0 in}{\b0 their}
{\b0 effect,}{\b0 and}{\b0 can}{\b0 measure}{\b0 the}{\b0 same}{\b0
result }
{\b0 when}{\b0 used}{\b0 on}{\b0 other}{\b0 occasions}{\b0 and}{\b0 applied}
{\b0 on}{\b0 the}{\b0 same}{\b0 subject}{\b0 or}{\b0 object;}{\b0 if}{\b0
someone }
{\b0 else}{\b0 undertakes}{\b0 the}{\b0 same}{\b0 study,}{\b0 would}{\b0 he}
{\b0 or}{\b0 she}{\b0 get}{\b0 the}{\b0 same}{\b0 result}{\b0 and}{\b0
also}{\b0 arrive }
{\b0 at}{\b0 the}{\b0 same}{\b0 conclusions?}{\b0 Also}{\b0 he}{\b0 goes}
{\b0 further}{\b0 to}{\b0 state}{\b0 that,}{\b0 researchers}{\b0 have}{\b0
to}{\b0 feel }
{\b0 confident}{\b0 that,}{\b0 their}{\b0 measurements}{\b0 are}{\b0 not}
{\b0 affected}{\b0 by}{\b0 a}{\b0 research}{\b0 instrument}{\b0 that }
{\b0 gives}{\b0 one}{\b0 reading}{\b0 on}{\b0 the}{\b0 first}{\b0 occasion}
{\b0 it}{\b0 is}{\b0 used}{\b0 and}{\b0 a}{\b0 different}{\b0 reading}{\b0
on}{\b0 the}{\b0 next }
{\b0 occasion}{\b0 when}{\b0 there}{\b0 has}{\b0 been}{\b0 no}{\b0
real}{\b0 change}{\b0 in}{\b0 the}{\b0 item}{\b0 being}{\b0 measured. }
{\b0 Moreover,}{\b0 he}{\b0 indicates}{\b0 that,}{\b0 a}{\b0 good}{\b0
level}{\b0 of}{\b0 reliability}{\b0 means}{\b0 that,}{\b0 the}{\b0
research }
{\b0 instrument}{\b0 produces}{\b0 the}{\b0 same}{\b0 data}{\b0 time}{\b0
after}{\b0 time}{\b0 on}{\b0 each}{\b0 occasion}{\b0 that}{\b0 it}{\b0 is}
{\b0 used, }
{\b0 and}{\b0 that}{\b0 any}{\b0 variation}{\b0 in}{\b0 the}{\b0 results}{\b0
obtained}{\b0 through}{\b0 using}{\b0 the}{\b0 instrument}{\b0 is}{\b0 due}
{\b0 to }
{\b0 fluctuations}{\b0 caused}{\b0 by}{\b0 the}{\b0 volatile}{\b0 nature}{\b0
of}{\b0 the}{\b0 research}{\b0 instrument}{\b0 itself.}{\b0 Again}{\b0 he }
{\b0 said}{\b0 that,}{\b0 a}{\b0 research}{\b0 instrument}{\b0 is}{\b0 said}
{\b0 to}{\b0 be}{\b0 reliable}{\b0 if}{\b0 it}{\b0 is}{\b0 consistent,}{\b0
and}{\b0 that}{\b0 this}{\b0 is }
{\b0 generally}{\b0 deemed}{\b0 to}{\b0 be}{\b0 good}{\b0 as}{\b0 far}{\b0
as}{\b0 research}{\b0 is}{\b0 concerned}.
{\b0 With}{\b0 regards}{\b0 to}{\b0 reliability}{\b0 in}{\b0 this}{\b0
study,}{\b0 we}{\b0 find}{\b0 it}{\b0 to}{\b0 be}{\b0 as}{\b0 accurate}{\b0
as}{\b0 possible}{\b0 when }
{\b0 dealings}{\b0 with}{\b0 people;}{\b0 that}{\b0 is}{\b0 human}{\b0
beings}{\b0 are}{\b0 very}{\b0 dynamic}{\b0 and}{\b0 as}{\b0 such}{\b0
changes }
{\b0 and}{\b0 develops.}{\b0 Due}{\b0 to}{\b0 this}{\b0 fact,}{\b0 we}
{\b0 have}{\b0 collected}{\b0 theories}{\b0 that}{\b0 are}{\b0
confirmed, }
{\b0 however,}{\b0 the}{\b0 empirical}{\b0 part}{\b0 of}{\b0 this}{\b0 may}
{\b0 differ.}{\b0 This}{\b0 is}{\b0 because}{\b0 it}{\b0 is}{\b0 all}{\b0
about}{\b0 human }
{\b0 interactions,}{\b0 between}{\b0 the}{\b0 interviewee}{\b0 and}{\b0 we}
{\b0 the}{\b0 interviewers. }
{\b0 Moreover,}{\b0 we}{\b0 have}{\b0 tried}{\b0 to}{\b0 improve}{\b0
the}{\b0 reliability}{\b0 of}{\b0 this}{\b0 study}{\b0 by}{\b0
describing}{\b0 and }
{\b0 documenting}{\b0 all}{\b0 the}{\b0 steps}{\b0 that}{\b0 we}{\b0 have}
{\b0 followed.}{\b0 We}{\b0 have}{\b0 read}{\b0 in}{\b0 advance}{\b0 about}
{\b0 the }
{\b0 companies}{\b0 in}{\b0 our}{\b0 sample}{\b0 and}{\b0 as}{\b0 two}
{\b0 researchers,}{\b0 taped}{\b0 all}{\b0 the}{\b0 interviews}{\b0 and
}
{\b0 recorded}{\b0 the}{\b0 proceedings}{\b0 in}{\b0 order}{\b0 to}{\b0
reduce}{\b0 biasness}{\b0 and}{\b0 errors.}{\b0 We}{\b0 also}{\b0 went}{\b0
back }\par
}
31 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
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14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
{\phpg\posx1417\pvpg\posy1421\absw9301\absh8470 \f10 \fs21 \cf0 \f10 \fs21 \cf0 to
some of the companies for a review of the data collected when we thought that a
\par}{\phpg\posx1417\pvpg\posy1421\absw9301\absh8470 \sl-275 \f10 \fs21 \cf0 point
needs to be clarified and for further explanations.
Again as recommendations by Yin (1994) , we have made use of the case study
protocol that invariably has helped to increase the reliability as we have
established a
database of research materials, tapes from interviews and referred articles that
can
\par}{\phpg\posx1417\pvpg\posy1421\absw9301\absh8470 \sl-275 \f10 \fs21 \cf0 be
made available to those who may be interested.
{\b 4.6.2}{\b Validity }
According to Denscombe (2000, pp. 213-214) validity of a research work, boils down
\par}{\phpg\posx1417\pvpg\posy1421\absw9301\absh8470 \sl-275 \f10 \fs21 \cf0 to the
following{\b : }
{\f0\fs28 \bullet }{\f40 } Do the conclusions do justice to the complexity of
the subject or phenomenon
being investigated and also does it avoid oversimplifications and also does it
offer internal consistency?
{\f0\fs28 \bullet }{\f40 } Has the researcher self been recognised as an
influence in the study and also
very objective?
{\f0\fs28 \bullet }{\f40 } Have the researchers selected the topic on explicit
and reasonable grounds as
far as the aims and goals of the study are concerned?
\fi360 In this study, in order to ensure high validity, we did study
nothing but the
purpose; the interview questions and the interview guide were
tested on
experience researchers such as , our supervisor who has quiet a long experience
in research; and some PDH students in the faculty; and some of our colleagues,
that is some master students in the faculty; also we tried to avoid
any kind of
biasness on our part and we were very objective.
\fi360 Furthermore, in this study, data collection methods were
complemented with
different kinds of materials and web pages whilst personal or face-to-
face
interviews were conducted by the researchers on responsible
officers or
respondents in the selected sample companies in order to get first hand
information. Also the choice to conduct a multiple case studies
on three
companies, which are in the same industry, increased the validity of our research
since it has provided us with a lot of information about the research area. \par
}
32 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\fs21 \cf0 5 Empirical Data Presentation
\cf0 {\b0\i In}{\b0\i the}{\b0\i previous}{\b0\i chapter,}{\b0\i the}{\b0\i
research}{\b0\i methodology}{\b0\i was}{\b0\i discussed.}{\b0\i In}{\b0\i
this}{\b0\i chapter, }
{\b0\i the}{\b0\i empirical}{\b0\i data}{\b0\i we}{\b0\i collected}{\b0\i
from}{\b0\i the}{\b0\i three}{\b0\i case}{\b0\i companies}{\b0\i are}{\b0\i
presented.}{\b0\i The }
{\b0\i three}{\b0\i investigated}{\b0\i banks}{\b0\i are,}{\b0\i Nordea,}
{\b0\i Handelsbanken}{\b0\i and}{\b0\i F�reningsbanken.}{\b0\i The }
{\b0\i data}{\b0\i is}{\b0\i based}{\b0\i on}{\b0\i our}{\b0\i conceptual}
{\b0\i frame}{\b0\i of}{\b0\i reference}{\b0\i in}{\b0\i chapter}{\b0\i
three}{\b0\i and}{\b0\i also}{\b0\i our}{\b0\i two }
{\b0\i research}{\b0\i questions}{\b0\i in}{\b0\i the}{\b0\i chapter}
{\b0\i two.}{\b0\i Each}{\b0\i section}{\b0\i will}{\b0\i begin}
{\b0\i with}{\b0\i a}{\b0\i brief }
{\b0\i background}{\b0\i of}{\b0\i the}{\b0\i company,}{\b0\i and}{\b0\i
thereafter,}{\b0\i the}{\b0\i data}{\b0\i collected}{\b0\i from}{\b0\i our}
{\b0\i interview}{\b0\i in}{\b0\i a }
{\b0\i way}{\b0\i to}{\b0\i answer}{\b0\i the}{\b0\i two}{\b0\i research}
{\b0\i questions}{\b0\i that}{\b0\i we}{\b0\i have}{\b0\i in}{\b0\i this}
{\b0\i study. }
\cf0 5.1 Nordea Bank
\cf0 {\b0 Nordea}{\b0 is}{\b0 the}{\b0 largest}{\b0 financial}{\b0
services}{\b0 group}{\b0 in}{\b0 the}{\b0 Nordic}{\b0 region.}{\b0
It}{\b0 has }
{\b0 approximately}{\b0 EUR}{\b0 262}{\b0 billion}{\b0 in}{\b0 total}{\b0
assets.}{\b0 Nordea}{\b0 is}{\b0 also}{\b0 one}{\b0 of}{\b0 the}{\b0 world-
leading }
{\b0 Internet}{\b0 banking}{\b0 and}{\b0 e-commerce}{\b0 operations.}{\b0
Nordea}{\b0 was}{\b0 formed}{\b0 base}{\b0 on}{\b0 the }
{\b0 philosophy}{\b0 of}{\b0 'creating}{\b0 new}{\b0 possibilities'.}{\b0 The}
{\b0 possibilities}{\b0 of}{\b0 providing}{\b0 better}{\b0 financial }
{\b0 solutions;}{\b0 better}{\b0 for}{\b0 the}{\b0 customers;}{\b0 better}{\b0
than}{\b0 its}{\b0 competitors;}{\b0 better}{\b0 than}{\b0 before}{\b0 and }
{\b0 to}{\b0 do}{\b0 this}{\b0 at}{\b0 a}{\b0 lower}{\b0 cost}{\b0 and}{\b0
with}{\b0 higher}{\b0 quality.}{\b0 This}{\b0 ambition}{\b0 is}{\b0
encapsulated}{\b0 in}{\b0 the }
{\b0 group's}{\b0 mission}{\b0 statement:}{\b0 '}{\b0 Making}{\b0 it}{\b0
possible'.}{\b0 This}{\b0 is}{\b0 about}{\b0 helping}{\b0 customers}{\b0 to }
{\b0 achieve}{\b0 what}{\b0 they}{\b0 aspire}{\b0 to.}{\b0 The}{\b0 name}{\b0
Nordea}{\b0 originate}{\b0 from}{\b0 two}{\b0 words:}{\b0 'Nordic'}{\b0 and }
{\b0 'Idea'-}{\b0 Nordic}{\b0 ideas.}{\b0 Nordea}{\b0 came}{\b0 about}{\b0
as}{\b0 a}{\b0 result}{\b0 of}{\b0 a}{\b0 merger}{\b0 of}{\b0 four}{\b0
Nordic}{\b0 banks. }
{\b0 Namely,}{\b0 Merita}{\b0 bank,}{\b0 Nordbanken,}{\b0 Unibank,}{\b0
and}{\b0 Christiania}{\b0 Bank}{\b0 from}{\b0 Finland, }
{\b0 Sweden,}{\b0 Denmark}{\b0 and}{\b0 Norway}{\b0 respectively.}{\b0 This}
{\b0 took}{\b0 place}{\b0 in}{\b0 December}{\b0 2001.}{\b0 The }
{\b0 bank's}{\b0 focus}{\b0 is}{\b0 to}{\b0 concentrate}{\b0 on}{\b0
creating}{\b0 value}{\b0 for}{\b0 its}{\b0 customers}{\b0 and}{\b0
shareholders. }
{\b0 It}{\b0 has}{\b0 about}{\b0 3.9}{\b0 million}{\b0 online}{\b0 or}{\b0
Internet}{\b0 customers.}{\b0 It}{\b0 has}{\b0 a}{\b0 very}{\b0 significant}
{\b0 position }
{\b0 in}{\b0 the}{\b0 Nordic}{\b0 region.}{\b0 This}{\b0 can}{\b0 be}{\b0
seen}{\b0 in}{\b0 its}{\b0 presence}{\b0 in}{\b0 the}{\b0 banking}{\b0
markets}{\b0 the }
{\b0 Nordic}{\b0 countries}{\b0 as}{\b0 follows: }
\cf0 \fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 40%}{\b0 in}{\b0 Finland }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 25%}{\b0 in}{\b0 Denmark }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 20%}{\b0 in}{\b0 Sweden}{\b0 and }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 15%}{\b0 in}{\b0 Norway }
\cf0 {\b0 Again}{\b0 it}{\b0 also}{\b0 has}{\b0 a}{\b0 very}{\b0 significant}
{\b0 position}{\b0 in}{\b0 the}{\b0 Nordic}{\b0 insurance}{\b0 markets}{\b0
that}{\b0 is}{\b0 life }
{\b0 insurance.}{\b0 This}{\b0 can}{\b0 also}{\b0 be}{\b0 seen}{\b0 in}{\b0
percentage}{\b0 terms}{\b0 as}{\b0 follows: }
\cf0 \fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Finland}{\b0 35% }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Denmark}{\b0 10% }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Norway}{\b0 9%}{\b0 and }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Sweden}{\b0 2%}{\b0
(www.nordea.com) }
\cf0 \fi360 {\b0 Nordea}{\b0 handles}{\b0 trading,}{\b0 research,}{\b0
sale}{\b0 of}{\b0 fixed}{\b0 income}{\b0 products,}{\b0 foreign }
\fi360 {\b0 exchange}{\b0 products,}{\b0 money}{\b0 market,}{\b0
commodities,}{\b0 corporate}{\b0 bonds}{\b0 and}{\b0 credit }
\fi360 {\b0 derivatives,}{\b0 equity}{\b0 and}{\b0 index-linked}{\b0 fixed}{\b0
income}{\b0 products,}{\b0 foreign}{\b0 exchange}{\b0 and }
\fi360 {\b0 fixed}{\b0 income}{\b0 derivatives}{\b0 as}{\b0 well}{\b0 as}{\b0
debt}{\b0 capital}{\b0 market}{\b0 products.}{\b0 Nordea}{\b0 was}{\b0 the }
\fi360 {\b0 second-largest}{\b0 lead}{\b0 arranger}{\b0 of}{\b0
international}{\b0 corporate}{\b0 bonds}{\b0 for}{\b0 non-financial }\par
}
33 \par
}
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010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\fs21 \cf0 issuers in the Nordic market in 20003. The market share for
Nordea is about
\fi360 12.9% as compare to Citigroup's 18.4%. This is very significant because none
of
\fi360 the other big banks have come even close to that figure (www.nordea.com).
\cf0 \fi360 Nordea has the largest customer base than any financial services group
in the
\fi360 Nordic region. This can be seen in the figures below:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } 9.6 million personal customers
\fi360 {\f0\fs28 \bullet }{\f40 } 930,000 corporate customers
\fi360 {\f0\fs28 \bullet }{\f40 } 1000 large corporate customers
Nordea has 1209 branch offices across the region.
Nordea has the leading asset manager in the Nordic financial market with about EUR
billion. This also includes private banking (www.nordea.com). Nordea's share is
listed on Stockholm, Helsinki and Copenhagen stock markets.
In 2004, Nordea was named the best private bank in Sweden by the 'Banker' and
so
July 2003, Nordea was named the best bank in Finland by Euromoney, the leading
international financial services magazine.
{\b 5.1.1}{\b CRM}{\b in}{\b Nordea}{\b Bank }
\cf0 \fi134 Mr. Fredrik Lundberg, the manager in charge of the Norrbotten region in
Sweden
defines CRM as a personal interaction with its customers. He segments
the B2C
customers of the bank into three groups: the gold customers, the silver customers
the ordinary customers. Nordea began its CRM project three years ago. In this
program, Nordea does survey about the customers' satisfaction every year.
They
\par}{\phpg\posx1417\pvpg\posy1421\absw9439\absh12386 \sl-275 \f10 \fs21 \cf0 send
questionnaires to their customers to evaluate themselves to see if they meet the
customers' satisfaction or not. Moreover, in this program, Nordea
meets its
customers from time to time to find out what its customers sees about them and also

find out the feelings of its customers. They try as much as possible to know if the

customers are satisfied with its services and or if they are not satisfied. If they
are
satisfied, then they do more of what they have been doing and also ask
the
customers what more do they want from the bank and they try to do that in order to
delight its customers. If they are not satisfied, then the bank tries to find out
why and
\par}{\phpg\posx1417\pvpg\posy1421\absw9439\absh12386 \sl-277 \f10 \fs21 \cf0 try
to meet them according to their individual specific needs.
{\b 5.1.2}{\b Objectives}{\b and}{\b strategies}{\b of}{\b CRM}{\b at}{\b
Nordea}{\b Bank }
According to Mr. Fredrik Lundberg, the manager in charge of the Norrbotten region,
\par}{\phpg\posx1417\pvpg\posy1421\absw9439\absh12386 \sl-275 \f10 \fs21 \cf0 based
on an interaction that we had with him in his office at the Lulea branch of the
\par}{\phpg\posx1417\pvpg\posy1421\absw9439\absh12386 \sl-275 \f10 \fs21 \cf0 bank
for more than an hour; the basic objective of the bank's CRM programs is to be
bank that has the most satisfied customers. This the bank believe will be made
possible by making it possible for the customers to achieve their needs
and
aspirations in their life. This is based on its statement 'Make it
possible'. In this
program they try to make it possible for their customers to achieve their goals and

aspirations in life. The main objectives and strategies of CRM in Nordea Bank can
be
\par}{\phpg\posx1417\pvpg\posy1421\absw9439\absh12386 \sl-275 \f10 \fs21 \cf0 seen
in the areas below: \par
}
34 \par
}
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10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\bullet }\f40 \fs21 \cf0 {\b \f10 Customer}{\b \f10 Interaction}{\f10 : }
\cf0 \fi360 {\f10 When}{\f10 it}{\f10 comes}{\f10 to}{\f10 interaction,}{\f10
Nordea}{\f10 uses}{\f10 as}{\f10 many}{\f10 channels}{\f10 as}{\f10
possible}{\f10 as }
\fi360 {\f10 they}{\f10 can}{\f10 to}{\f10 reach}{\f10 their}{\f10 customers.}
{\f10 These}{\f10 channels}{\f10 include:}{\f10 call}{\f10 center,}{\f10
ATM, }
\fi360 {\f10 sales}{\f10 personnel,}{\f10 branch}{\f10 offices}{\f10 and}
{\f10 the}{\f10 Internet.}{\f10 Within}{\f10 these}{\f10 channels,}{\f10
the }
\fi360 {\f10 bank}{\f10 prefers}{\f10 to}{\f10 contact}{\f10 their}{\f10
customers}{\f10 face}{\f10 to}{\f10 face.}{\f10 They}{\f10 think}{\f10 that}
{\f10 face-to-face }
\fi360 {\f10 discussions}{\f10 can}{\f10 help}{\f10 them}{\f10 gain}{\f10
better}{\f10 understanding}{\f10 of}{\f10 their}{\f10 customers}{\f10 and
}
\fi360 {\f10 vice}{\f10 versa}{\f10 and}{\f10 it}{\f10 is}{\f10 also}
{\f10 easy}{\f10 to}{\f10 communicate}{\f10 with}{\f10 them.}{\f10 For}
{\f10 Nordea,}{\f10 the }
\fi360 {\f10 interaction}{\f10 that}{\f10 a}{\f10 customer}{\f10 get}{\f10
has}{\f10 also}{\f10 been}{\f10 grouped}{\f10 into}{\f10 three}{\f10
categories }
\fi360 {\f10 base}{\f10 on}{\f10 the}{\f10 way}{\f10 they}{\f10 have}
{\f10 group}{\f10 their}{\f10 customers,}{\f10 that}{\f10 is}{\f10
gold,}{\f10 silver}{\f10 and }
\fi360 {\f10 ordinary}{\f10 customers.}{\f10 In}{\f10 this}{\f10 case,}
{\f10 the}{\f10 gold}{\f10 customers}{\f10 have}{\f10 a}{\f10 personal}
{\f10 private }
\fi360 {\f10 banker}{\f10 who}{\f10 meet}{\f10 with}{\f10 him}{\f10 or}
{\f10 her}{\f10 on}{\f10 regular}{\f10 basis}{\f10 to}{\f10 discuss}
{\f10 the}{\f10 customer's }
\fi360 {\f10 finances}{\f10 and}{\f10 for}{\f10 the}{\f10 bank}{\f10 to}
{\f10 offer}{\f10 advice}{\f10 as}{\f10 to}{\f10 how}{\f10 best}{\f10
the}{\f10 customer}{\f10 can }
\fi360 {\f10 manage}{\f10 his}{\f10 or}{\f10 her}{\f10 finances}{\f10 base}
{\f10 on}{\f10 the}{\f10 customers}{\f10 needs.}{\f10 The}{\f10 silver}{\f10
customers }
\fi360 {\f10 also}{\f10 have}{\f10 a}{\f10 staff}{\f10 that}{\f10 has}{\f10
been}{\f10 assigned}{\f10 to}{\f10 them}{\f10 so}{\f10 that}{\f10 any}{\f10
time}{\f10 they}{\f10 need}{\f10 any }
\fi360 {\f10 help}{\f10 or}{\f10 advice}{\f10 they}{\f10 talk}{\f10 to}
{\f10 that}{\f10 particular}{\f10 person}{\f10 who}{\f10 also}{\f10
understands}{\f10 the }
\fi360 {\f10 customers'}{\f10 needs.}{\f10 In}{\f10 the}{\f10 same}{\f10
way,}{\f10 the}{\f10 ordinary}{\f10 customer}{\f10 has}{\f10 not}{\f10
been }
\fi360 {\f10 assigned}{\f10 a}{\f10 personal}{\f10 private}{\f10 banker}{\f10
as}{\f10 it}{\f10 is}{\f10 with}{\f10 the}{\f10 gold}{\f10 and}{\f10 the}
{\f10 silver}{\f10 however, }
\fi360 {\f10 anytime}{\f10 they}{\f10 need}{\f10 any}{\f10 assistance}{\f10
through}{\f10 any}{\f10 of}{\f10 the}{\f10 channels,}{\f10 the}{\f10
bank}{\f10 is }
\fi360 {\f10 happy}{\f10 to}{\f10 help}{\f10 base}{\f10 on}{\f10 again}
{\f10 the}{\f10 customers}{\f10 needs}{\f10 and}{\f10 the}{\f10
information}{\f10 they }
\fi360 {\f10 have}{\f10 about}{\f10 him}{\f10 or}{\f10 her.}{\f10 Not}{\f10
withstanding}{\f10 the}{\f10 above,}{\f10 Nordea}{\f10 does}{\f10 survey}{\f10
about }
\fi360 {\f10 its}{\f10 customers}{\f10 satisfaction}{\f10 every}{\f10
year.}{\f10 This}{\f10 is}{\f10 for}{\f10 all}{\f10 categories}{\f10
of}{\f10 customers. }
\fi360 {\f10 They}{\f10 call}{\f10 this}{\f10 Customer}{\f10 Satisfaction}
{\f10 Index}{\f10 (CSI).}{\f10 In}{\f10 this}{\f10 program,}{\f10 they}
{\f10 try}{\f10 to }
\fi360 {\f10 meet}{\f10 the}{\f10 best}{\f10 customers}{\f10 to}{\f10 share}
{\f10 ideas}{\f10 and}{\f10 discuss}{\f10 and}{\f10 ask}{\f10 for}{\f10
suggestions}{\f10 on }
\fi360 {\f10 how}{\f10 to}{\f10 help}{\f10 them}{\f10 to}{\f10 manage}{\f10
their}{\f10 private}{\f10 finances. }
{\f0\fs28 \bullet }{\b \f10 Customer}{\b \f10 Differentiation}{\f10 :}{\f10
This}{\f10 is}{\f10 also}{\f10 one}{\f10 of}{\f10 the}{\f10 major}{\f10
objectives}{\f10 and}{\f10 strategy }
\fi360 {\f10 of}{\f10 CRM}{\f10 in}{\f10 Nordea.}{\f10 Basically}{\f10
the}{\f10 B2C}{\f10 customers}{\f10 of}{\f10 Nordea}{\f10 have}{\f10
been}{\f10 group }
\fi360 {\f10 into}{\f10 three}{\f10 categories.}{\f10 They}{\f10 are:}{\f10
gold}{\f10 customers,}{\f10 these}{\f10 are}{\f10 the}{\f10 big}{\f10 and}
{\f10 the}{\f10 most }
\fi360 {\f10 important}{\f10 customers}{\f10 of}{\f10 the}{\f10 bank;}{\f10
silver}{\f10 customers,}{\f10 they}{\f10 are}{\f10 the}{\f10 next}{\f10
important }
\fi360 {\f10 customers}{\f10 after}{\f10 the}{\f10 gold}{\f10 and;}{\f10 the}
{\f10 ordinary}{\f10 customers,}{\f10 they}{\f10 are}{\f10 also}{\f10
important }
\fi360 {\f10 but}{\f10 just}{\f10 that}{\f10 they}{\f10 are}{\f10 the}{\f10
normal}{\f10 customers}{\f10 of}{\f10 the}{\f10 bank. }
{\f0\fs28 \bullet }{\b \f10 Personalization:}{\f10 Personalization}{\f10 is}
{\f10 also}{\f10 part}{\f10 of}{\f10 CRM}{\f10 strategies}{\f10 of}{\f10
Nordea.}{\f10 This }
\fi360 {\f10 according}{\f10 to}{\f10 them}{\f10 is}{\f10 one}{\f10 of}
{\f10 their}{\f10 primary}{\f10 aim}{\f10 that}{\f10 the}{\f10 bank}
{\f10 try}{\f10 to}{\f10 help}{\f10 each }
\fi360 {\f10 customer}{\f10 to}{\f10 achieve}{\f10 his}{\f10 or}{\f10 her}
{\f10 goals}{\f10 in}{\f10 life}{\f10 according}{\f10 to}{\f10 their}{\f10
personal}{\f10 needs }
\fi360 {\f10 and}{\f10 demands.}{\f10 They}{\f10 also}{\f10 use}{\f10
data}{\f10 mining}{\f10 methods}{\f10 to}{\f10 search}{\f10 through}{\f10
the }
\fi360 {\f10 customer}{\f10 database}{\f10 that}{\f10 they}{\f10 have,}
{\f10 trying}{\f10 to}{\f10 know}{\f10 the}{\f10 needs}{\f10 of}{\f10
the}{\f10 ordinary }
\fi360 {\f10 customers}{\f10 and}{\f10 make}{\f10 customized}{\f10 service}
{\f10 and}{\f10 products}{\f10 for}{\f10 them.}{\f10 For}{\f10 the}{\f10
gold }
\fi360 {\f10 and}{\f10 the}{\f10 silver}{\f10 customers,}{\f10 they}{\f10
meet}{\f10 them}{\f10 one}{\f10 on}{\f10 one}{\f10 basis}{\f10 and}{\f10
try}{\f10 to}{\f10 know}{\f10 their }
\fi360 {\f10 needs}{\f10 so}{\f10 that}{\f10 they}{\f10 can}{\f10 help}{\f10
them}{\f10 to}{\f10 meet}{\f10 these}{\f10 needs. }
{\f0\fs28 \bullet }{\b \f10 Customer}{\b \f10 Identification}{\f10 :}{\f10
Nordea}{\f10 identify}{\f10 and}{\f10 acquire}{\f10 new}{\f10 customers}{\f10
through }
\fi360 {\f10 their}{\f10 youth}{\f10 programs.}{\f10 They}{\f10 go}{\f10 to}
{\f10 the}{\f10 university}{\f10 campuses}{\f10 from}{\f10 time}{\f10 to}
{\f10 time}{\f10 and }
\fi360 {\f10 meet}{\f10 with}{\f10 the}{\f10 students.}{\f10 They}{\f10 also}
{\f10 sponsor}{\f10 university}{\f10 student}{\f10 programs}{\f10 so}{\f10
that }
\fi360 {\f10 their}{\f10 name}{\f10 will}{\f10 be}{\f10 familiar}{\f10
with}{\f10 the}{\f10 student}{\f10 body.}{\f10 One}{\f10 way}{\f10
that}{\f10 they}{\f10 get}{\f10 new }
\fi360 {\f10 customers}{\f10 is}{\f10 that,}{\f10 they}{\f10 also}{\f10
visit}{\f10 companies}{\f10 and}{\f10 talk}{\f10 to}{\f10 the}{\f10
staff.}{\f10 Again}{\f10 they }
\fi360 {\f10 have}{\f10 partners}{\f10 and}{\f10 affiliates}{\f10 so}{\f10
they}{\f10 try}{\f10 to}{\f10 get}{\f10 to}{\f10 the}{\f10 customers}{\f10
of}{\f10 their}{\f10 partners }
\fi360 {\f10 and}{\f10 affiliates}{\f10 and}{\f10 also}{\f10 the}{\f10 staff}
{\f10 of}{\f10 the}{\f10 corporate}{\f10 customers. }\par
}
35 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\fs21 \cf0 5.1.3 Expected Benefits of CRM at Nordea
{\b0 According}{\b0 to}{\b0 Mr.}{\b0 Fredrik}{\b0 Lundberg,}{\b0 the}{\b0
major}{\b0 benefits}{\b0 Nordea}{\b0 was}{\b0 expecting}{\b0 or}{\b0 the }
{\b0 main}{\b0 reasons}{\b0 why}{\b0 they}{\b0 embarked}{\b0 on}{\b0 the}{\b0
CRM}{\b0 program}{\b0 as}{\b0 follows: }
\fi180 {\f0\fs28 \bullet }{\b0 \f40 } Revenue and profitability
enhancement{\b0 :}{\b0 They}{\b0 wanted}{\b0 increase}{\b0 customer }
\fi720 {\b0 satisfaction}{\b0 that}{\b0 will}{\b0 lead}{\b0 to}{\b0 customer}
{\b0 loyalty}{\b0 and}{\b0 therefore}{\b0 higher}{\b0 profitability }
\fi720 {\b0 for}{\b0 Nordea. }
\fi180 {\f0\fs28 \bullet }{\b0 \f40 } Cost savings and reduction{\b0 :}{\b0
They}{\b0 wanted}{\b0 to}{\b0 do}{\b0 this}{\b0 by}{\b0 know}{\b0 their}{\b0
customers }
\fi720 {\b0 well}{\b0 so}{\b0 that}{\b0 they}{\b0 will}{\b0 proved}{\b0 the}
{\b0 right}{\b0 product}{\b0 to}{\b0 the}{\b0 right}{\b0 customer}{\b0 at}
{\b0 the}{\b0 right }
\fi720 {\b0 time.}{\b0 By}{\b0 doing}{\b0 this}{\b0 cost}{\b0 of}{\b0
advertising}{\b0 campaign}{\b0 will}{\b0 be}{\b0 reduced. }
\fi180 {\f0\fs28 \bullet }{\b0 \f40 } Organizational impact{\b0 :}{\b0
They}{\b0 want}{\b0 to}{\b0 achieve}{\b0 this}{\b0 by}{\b0 increasing}
{\b0 customer }
\fi540 {\b0 satisfaction,}{\b0 customer}{\b0 loyalty}{\b0 and}{\b0 also}{\b0
higher}{\b0 profitability.}{\b0 Mr.}{\b0 Fredrik}{\b0 said}{\b0 that }
\fi540 {\b0 for}{\b0 the}{\b0 past}{\b0 few}{\b0 years,}{\b0 the}{\b0 image}
{\b0 of}{\b0 Nordea}{\b0 has}{\b0 been}{\b0 improved}{\b0 He}{\b0 said}{\b0
that}{\b0 this }
\fi540 {\b0 can}{\b0 be}{\b0 seen}{\b0 in}{\b0 the}{\b0 number}{\b0 of}
{\b0 awards}{\b0 that}{\b0 the}{\b0 bank}{\b0 has}{\b0 been}{\b0
receiving,}{\b0 for }
\fi540 {\b0 example}{\b0 Nordea}{\b0 was}{\b0 adjudged}{\b0 the}{\b0 best}
{\b0 private}{\b0 bank}{\b0 in}{\b0 Sweden}{\b0 in}{\b0 2004}{\b0 and }
\fi540 {\b0 also}{\b0 the}{\b0 best}{\b0 bank}{\b0 in}{\b0 Finland}{\b0
in}{\b0 2003.}{\b0 He}{\b0 attributed}{\b0 this}{\b0 to}{\b0 the}{\b0
good}{\b0 CRM }
\fi540 {\b0 program}{\b0 they}{\b0 are}{\b0 embarking}{\b0 on. }\par
}
\cf0 5.3 HandelsBanken
{\b0 \f10 \fs21 Handelsbanken}{\b0 \f10 \fs21 was}{\b0 \f10 \fs21 founded}
{\b0 \f10 \fs21 in}{\b0 \f10 \fs21 1871}{\b0 \f10 \fs21 by}{\b0 \f10 \fs21
a}{\b0 \f10 \fs21 number}{\b0 \f10 \fs21 of}{\b0 \f10 \fs21 prominent}{\b0
\f10 \fs21 companies}{\b0 \f10 \fs21 and }
{\b0 \f10 \fs21 individuals}{\b0 \f10 \fs21 in}{\b0 \f10 \fs21 Stockholm's}{\b0
\f10 \fs21 business}{\b0 \f10 \fs21 world}{\b0 \f10 \fs21 and}{\b0 \f10 \fs21
it}{\b0 \f10 \fs21 expanded}{\b0 \f10 \fs21 later}{\b0 \f10 \fs21 to}{\b0
\f10 \fs21 other}{\b0 \f10 \fs21 parts}{\b0 \f10 \fs21 of }
{\b0 \f10 \fs21 Sweden.}{\b0 \f10 \fs21 After}{\b0 \f10 \fs21 that,}{\b0 \f10
\fs21 it}{\b0 \f10 \fs21 first}{\b0 \f10 \fs21 opened}{\b0 \f10 \fs21 its}
{\b0 \f10 \fs21 international}{\b0 \f10 \fs21 branches}{\b0 \f10 \fs21 in}
{\b0 \f10 \fs21 London,}{\b0 \f10 \fs21 New}{\b0 \f10 \fs21 York}{\b0 \f10 \fs21
and }
{\b0 \f10 \fs21 Singapore}{\b0 \f10 \fs21 before}{\b0 \f10 \fs21 entering}
{\b0 \f10 \fs21 the}{\b0 \f10 \fs21 Nordic}{\b0 \f10 \fs21 Region}{\b0
\f10 \fs21 in}{\b0 \f10 \fs21 the}{\b0 \f10 \fs21 middle}{\b0 \f10 \fs21
of}{\b0 \f10 \fs21 1990s}{\b0 \f10 \fs21 in}{\b0 \f10 \fs21 Norway, }
{\b0 \f10 \fs21 Finland}{\b0 \f10 \fs21 and}{\b0 \f10 \fs21 Denmark}{\b0 \f10
\fs21 respectively. }
{\b0 \f10 \fs21 Handelsbanken}{\b0 \f10 \fs21 is}{\b0 \f10 \fs21 a}{\b0 \f10
\fs21 Nordic}{\b0 \f10 \fs21 bank.}{\b0 \f10 \fs21 It}{\b0 \f10 \fs21 is}
{\b0 \f10 \fs21 a}{\b0 \f10 \fs21 universal}{\b0 \f10 \fs21 bank,}{\b0 \f10
\fs21 which}{\b0 \f10 \fs21 is}{\b0 \f10 \fs21 highly}{\b0 \f10 \fs21
decentralized. }
{\b0 \f10 \fs21 The}{\b0 \f10 \fs21 strength}{\b0 \f10 \fs21 and}{\b0 \f10
\fs21 heart}{\b0 \f10 \fs21 of}{\b0 \f10 \fs21 the}{\b0 \f10 \fs21 bank}
{\b0 \f10 \fs21 is}{\b0 \f10 \fs21 its}{\b0 \f10 \fs21 large}{\b0 \f10 \fs21
network}{\b0 \f10 \fs21 of}{\b0 \f10 \fs21 branches.}{\b0 \f10 \fs21 The}{\b0
\f10 \fs21 basic }
{\b0 \f10 \fs21 concept}{\b0 \f10 \fs21 of}{\b0 \f10 \fs21 Handels}{\b0 \f10
\fs21 bank}{\b0 \f10 \fs21 is}{\b0 \f10 \fs21 that,}{\b0 \f10 \fs21 the}{\b0
\f10 \fs21 organization}{\b0 \f10 \fs21 and}{\b0 \f10 \fs21 work}{\b0 \f10 \fs21
methods}{\b0 \f10 \fs21 are}{\b0 \f10 \fs21 base}{\b0 \f10 \fs21 on}{\b0 \f10
\fs21 the }
{\b0 \f10 \fs21 branches'}{\b0 \f10 \fs21 responsibility}{\b0 \f10 \fs21 for}{\b0
\f10 \fs21 individual}{\b0 \f10 \fs21 customers.}{\b0 \f10 \fs21 In}{\b0 \f10
\fs21 other}{\b0 \f10 \fs21 words,}{\b0 \f10 \fs21 all}{\b0 \f10 \fs21 the}{\b0
\f10 \fs21 branches}{\b0 \f10 \fs21 are }
{\b0 \f10 \fs21 autonomous}{\b0 \f10 \fs21 and}{\b0 \f10 \fs21 does}{\b0
\f10 \fs21 what}{\b0 \f10 \fs21 they}{\b0 \f10 \fs21 deem}{\b0 \f10 \fs21
fit}{\b0 \f10 \fs21 regarding}{\b0 \f10 \fs21 their}{\b0 \f10 \fs21
customers}{\b0 \f10 \fs21 the}{\b0 \f10 \fs21 way}{\b0 \f10 \fs21 they }
{\b0 \f10 \fs21 want}{\b0 \f10 \fs21 to}{\b0 \f10 \fs21 relate}{\b0 \f10 \fs21
to}{\b0 \f10 \fs21 them.}{\b0 \f10 \fs21 The}{\b0 \f10 \fs21 branches}{\b0
\f10 \fs21 have}{\b0 \f10 \fs21 total}{\b0 \f10 \fs21 responsibility}{\b0
\f10 \fs21 regarding}{\b0 \f10 \fs21 all}{\b0 \f10 \fs21 customers }
{\b0 \f10 \fs21 in}{\b0 \f10 \fs21 their}{\b0 \f10 \fs21 respective}{\b0 \f10
\fs21 geographic}{\b0 \f10 \fs21 areas.}{\b0 \f10 \fs21 This}{\b0 \f10 \fs21
also}{\b0 \f10 \fs21 includes}{\b0 \f10 \fs21 the}{\b0 \f10 \fs21 major}{\b0
\f10 \fs21 corporate}{\b0 \f10 \fs21 clients. }
{\b0 \f10 \fs21 The}{\b0 \f10 \fs21 branches}{\b0 \f10 \fs21 coordinate}
{\b0 \f10 \fs21 the}{\b0 \f10 \fs21 central}{\b0 \f10 \fs21 and}{\b0
\f10 \fs21 regional}{\b0 \f10 \fs21 resources}{\b0 \f10 \fs21 needed}
{\b0 \f10 \fs21 to}{\b0 \f10 \fs21 give }
{\b0 \f10 \fs21 customers}{\b0 \f10 \fs21 the}{\b0 \f10 \fs21 best}{\b0 \f10
\fs21 possible}{\b0 \f10 \fs21 service.}{\b0 \f10 \fs21 One}{\b0 \f10 \fs21 of}
{\b0 \f10 \fs21 the}{\b0 \f10 \fs21 main}{\b0 \f10 \fs21 goals}{\b0 \f10 \fs21
of}{\b0 \f10 \fs21 Handelsbanken}{\b0 \f10 \fs21 is}{\b0 \f10 \fs21 to }
{\b0 \f10 \fs21 provide}{\b0 \f10 \fs21 high}{\b0 \f10 \fs21 quality}{\b0 \f10
\fs21 service}{\b0 \f10 \fs21 along}{\b0 \f10 \fs21 with}{\b0 \f10 \fs21 the}
{\b0 \f10 \fs21 goal}{\b0 \f10 \fs21 of}{\b0 \f10 \fs21 having}{\b0 \f10 \fs21
lowest}{\b0 \f10 \fs21 costs;}{\b0 \f10 \fs21 it}{\b0 \f10 \fs21 is}{\b0 \f10
\fs21 known}{\b0 \f10 \fs21 in }
{\b0 \f10 \fs21 this}{\b0 \f10 \fs21 aspect}{\b0 \f10 \fs21 as}{\b0 \f10 \fs21
compared}{\b0 \f10 \fs21 to}{\b0 \f10 \fs21 all}{\b0 \f10 \fs21 the}{\b0 \f10
\fs21 other}{\b0 \f10 \fs21 Nordic}{\b0 \f10 \fs21 banks. }
{\b0 \f10 \fs21 Handelsbanken}{\b0 \f10 \fs21 is}{\b0 \f10 \fs21 a}{\b0 \f10
\fs21 universal}{\b0 \f10 \fs21 bank,}{\b0 \f10 \fs21 hence}{\b0 \f10 \fs21
it}{\b0 \f10 \fs21 covers}{\b0 \f10 \fs21 all}{\b0 \f10 \fs21 banking}{\b0
\f10 \fs21 and}{\b0 \f10 \fs21 financial }
{\b0 \f10 \fs21 services.}{\b0 \f10 \fs21 The}{\b0 \f10 \fs21 services}
{\b0 \f10 \fs21 it}{\b0 \f10 \fs21 offers}{\b0 \f10 \fs21 includes:}
{\b0 \f10 \fs21 traditional}{\b0 \f10 \fs21 corporate}{\b0 \f10 \fs21
transactions, }
{\b0 \f10 \fs21 investment}{\b0 \f10 \fs21 banking}{\b0 \f10 \fs21 and}
{\b0 \f10 \fs21 trading,}{\b0 \f10 \fs21 retail}{\b0 \f10 \fs21 banking,}
{\b0 \f10 \fs21 pensions}{\b0 \f10 \fs21 and}{\b0 \f10 \fs21 life}{\b0
\f10 \fs21 insurance. }
{\b0 \f10 \fs21 Handelsbanken's}{\b0 \f10 \fs21 business}{\b0 \f10 \fs21 units}
{\b0 \f10 \fs21 consist}{\b0 \f10 \fs21 of}{\b0 \f10 \fs21 the}{\b0 \f10
\fs21 Branch}{\b0 \f10 \fs21 Office}{\b0 \f10 \fs21 Operations,}{\b0 \f10
\fs21 this }
{\b0 \f10 \fs21 includes}{\b0 \f10 \fs21 finance}{\b0 \f10 \fs21 company}
{\b0 \f10 \fs21 services}{\b0 \f10 \fs21 like}{\b0 \f10 \fs21 leasing}{\b0
\f10 \fs21 and}{\b0 \f10 \fs21 factoring,}{\b0 \f10 \fs21 and}{\b0 \f10 \fs21
Stadshypoket }
{\b0 \f10 \fs21 Bank,}{\b0 \f10 \fs21 Markets}{\b0 \f10 \fs21 which}{\b0 \f10
\fs21 includes}{\b0 \f10 \fs21 Capital}{\b0 \f10 \fs21 Markets}{\b0 \f10 \fs21
which}{\b0 \f10 \fs21 deals}{\b0 \f10 \fs21 with}{\b0 \f10 \fs21 the}{\b0
\f10 \fs21 money}{\b0 \f10 \fs21 and}{\b0 \f10 \fs21 the }
{\b0 \f10 \fs21 foreign}{\b0 \f10 \fs21 exchange}{\b0 \f10 \fs21 markets,}
{\b0 \f10 \fs21 corporate}{\b0 \f10 \fs21 finance}{\b0 \f10 \fs21 and}{\b0
\f10 \fs21 equity}{\b0 \f10 \fs21 trading,}{\b0 \f10 \fs21 and}{\b0 \f10
\fs21 Markets }
{\b0 \f10 \fs21 International,}{\b0 \f10 \fs21 which}{\b0 \f10 \fs21 conducts}
{\b0 \f10 \fs21 trade}{\b0 \f10 \fs21 financing}{\b0 \f10 \fs21 and}{\b0 \f10
\fs21 banking}{\b0 \f10 \fs21 outside}{\b0 \f10 \fs21 the}{\b0 \f10 \fs21
Nordic}{\b0 \f10 \fs21 region }\par
}
36 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
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0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
and \par
}
the \par
}
{\phpg\posx2875\pvpg\posy1421\absw613\absh241 \f10 \fs21 \cf0 \f10 \fs21 \cf0 U.K.,
\par
}
{\phpg\posx3771\pvpg\posy1421\absw663\absh241 \f10 \fs21 \cf0 \f10 \fs21 \cf0 Asset
\par
}
Management, \par
}
and \par
}
Pensions \par
}
and \par
}
Insurance \par
}
(www.industrivarden.net)
Handelsbanken is one of the leading banks in the Nordic region with total assets in
\par}{\phpg\posx1417\pvpg\posy1697\absw9416\absh6698 \sl-275 \f10 \fs21 \cf0 excess

of SEK1, 300 billion and profits of SEK 11.6 billion in 2003. The bank has
\par}{\phpg\posx1417\pvpg\posy1697\absw9416\absh6698 \sl-275 \f10 \fs21 \cf0 about
9,000 employees.
The overall objective of the bank is to have a higher return on equity
that is a
weighted average than the other listed Nordic banks. If this target is
achieved, an
\par}{\phpg\posx1417\pvpg\posy1697\absw9416\absh6698 \sl-275 \f10 \fs21 \cf0 amount
corresponding to a maximum of about 25% of the bank's dividend starting
15% from 2004 is allocated to the (Oktogonen Foundation), that is the Handels
\par}{\phpg\posx1417\pvpg\posy1697\absw9416\absh6698 \sl-275 \f10 \fs21 \cf0 bank's
employee profit-sharing fund or system. Significant portions of
the
foundation's assets are invested in Handelsbanken stocks. Handelsbanken's higher
profitability is intended to benefit its shareholders through higher
dividend growth
\par}{\phpg\posx1417\pvpg\posy1697\absw9416\absh6698 \sl-275 \f10 \fs21 \cf0 than
the average for the Nordic banks. With Handels, profitability is always
more
important than volume. In the banks lending activities this means that credit
quality
\par}{\phpg\posx1417\pvpg\posy1697\absw9416\absh6698 \sl-275 \f10 \fs21 \cf0 may
never neglected in favor of a large lending volume. Handels bank's major aim is
have the most satisfied customers in the Nordic region (www.industrivarden.net).
{\b 5.2.1}{\b CRM}{\b at}{\b Handelsbanken }
According to Mr. Magnus Stenberg, the Accounts Manager, in our long chat at the
\par}{\phpg\posx1417\pvpg\posy1697\absw9416\absh6698 \sl-275 \f10 \fs21 \cf0 Lulea
branch said that, at Handels Customer Relationship Management is
relationship but not just the relation but also a long term one. Also
the bank is
concentrating on its branches instead of centralized management, branches
are
responsible for their customers relationships and therefore their needs and
demands.
\par}{\phpg\posx1417\pvpg\posy1697\absw9416\absh6698 \sl-275 \f10 \fs21 \cf0 The
branches treat each customer as an individual with different needs and
demands. This is done in a customer-oriented approach by the bank. \par
}
\cf0 5.2.3{\fs23 Objectives}{\fs23 and}{\fs23 Strategies}{\fs23 of}{\fs23
CRM}{\fs23 at}{\fs23 Handelsbanken }
{\b0 The}{\b0 main}{\b0 objective}{\b0 of}{\b0 customer}{\b0 relationship}{\b0
management}{\b0 at}{\b0 Handelsbanken}{\b0 is}{\b0 higher }
{\b0 profitability}{\b0 through}{\b0 high}{\b0 customer}{\b0 satisfaction}{\b0
and}{\b0 low}{\b0 cost.}{\b0 The}{\b0 goal}{\b0 of}{\b0 Handels}{\b0 is}{\b0
to }
{\b0 have}{\b0 the}{\b0 lowest}{\b0 cost}{\b0 than}{\b0 any}{\b0 other}{\b0
bank}{\b0 in}{\b0 Sweden}{\b0 and}{\b0 beyond.}{\b0 They}{\b0 are}{\b0
doing}{\b0 the }
{\b0 same}{\b0 things}{\b0 and}{\b0 activities}{\b0 as}{\b0 the}{\b0 other}
{\b0 banks}{\b0 in}{\b0 Sweden}{\b0 but}{\b0 they}{\b0 want}{\b0 to}{\b0
do}{\b0 it}{\b0 with }
{\b0 the}{\b0 lowest}{\b0 cost}{\b0 and}{\b0 also}{\b0 the}{\b0
highest}{\b0 satisfied}{\b0 customer.}{\b0 Handels}{\b0 want}{\b0 to}{\b0
get}{\b0 the }
{\b0 highest}{\b0 point}{\b0 in}{\b0 the}{\b0 Customer}{\b0 Satisfaction}
{\b0 Index}{\b0 (CSI);}{\b0 this}{\b0 is}{\b0 one}{\b0 of}{\b0 the}
{\b0 main }
{\b0 objectives}{\b0 of}{\b0 the}{\b0 bank.}{\b0 The}{\b0 main}{\b0 CRM}{\b0
strategies}{\b0 at}{\b0 Handelsbanken}{\b0 can}{\b0 be}{\b0 seen}{\b0 as }
{\b0 follows: }
Customer Interaction{\b0 :}{\b0 Handels}{\b0 uses}{\b0 different}{\b0
channels}{\b0 according}{\b0 to}{\b0 customer }
{\b0 requirements}{\b0 in}{\b0 its}{\b0 interactions}{\b0 with}{\b0 its}{\b0
customers.}{\b0 Some}{\b0 of}{\b0 these}{\b0 channels}{\b0 include, }
{\b0 telephone,}{\b0 call}{\b0 center,}{\b0 branch}{\b0 office,}{\b0 ATM,}{\b0
Internet}{\b0 and}{\b0 field}{\b0 based}{\b0 managers.}{\b0 The }
{\b0 bank}{\b0 focuses}{\b0 so}{\b0 much}{\b0 on}{\b0 the}{\b0 branch}{\b0
channel}{\b0 because}{\b0 they}{\b0 think}{\b0 it}{\b0 is}{\b0 the}{\b0
strongest }
{\b0 according}{\b0 to}{\b0 the}{\b0 bank's}{\b0 resources.}{\b0 This}
{\b0 is}{\b0 also}{\b0 because}{\b0 the}{\b0 bank}{\b0 helps}{\b0 the
}
{\b0 customers}{\b0 better}{\b0 at}{\b0 the}{\b0 branch.}{\b0 This}{\b0 is}
{\b0 where}{\b0 the}{\b0 managers}{\b0 and}{\b0 the}{\b0 staff}{\b0 of}{\b0
the}{\b0 bank }
{\b0 gives}{\b0 more}{\b0 time}{\b0 to}{\b0 the}{\b0 customer}{\b0 and}{\b0
also}{\b0 the}{\b0 bank}{\b0 is}{\b0 able}{\b0 to}{\b0 learn}{\b0 more}{\b0
about}{\b0 the }
{\b0 special}{\b0 situation}{\b0 of}{\b0 the}{\b0 customer}{\b0 so}{\b0
that}{\b0 they}{\b0 can}{\b0 meet}{\b0 the}{\b0 customers}{\b0 needs }
{\b0 squarely.}{\b0 As}{\b0 part}{\b0 of}{\b0 the}{\b0 CRM}{\b0 initiatives}
{\b0 of}{\b0 the}{\b0 bank,}{\b0 they}{\b0 meet}{\b0 all}{\b0 customers}{\b0
of}{\b0 the }\par
}
37 \par
}
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\par
}
bank at least once every year and discuss about their personal finances and their
\par}{\phpg\posx1417\pvpg\posy1421\absw9269\absh4215 \sl-275 \f10 \fs21 \cf0 needs

and how possible the bank can help them meet their needs and aspirations.
{\b Personalization}{\b or}{\b Customization}: According Handels, customers are
the same in
general sense but they are all different according to their needs or
they all have
different needs so Handels try to help them according to their unique needs and
tailor
special products and services according to what they want from the bank.
{\b Customer}{\b Identification}: Handels try to get many customers. This is done
in several
\par}{\phpg\posx1417\pvpg\posy1421\absw9269\absh4215 \sl-275 \f10 \fs21 \cf0 ways.
One of the ways is that, they meet new customers through house brokers.
\par}{\phpg\posx1417\pvpg\posy1421\absw9269\absh4215 \sl-275 \f10 \fs21 \cf0 Also,

the bank goes out and gives opportunity to people who are going to buy new
\par}{\phpg\posx1417\pvpg\posy1421\absw9269\absh4215 \sl-275 \f10 \fs21 \cf0 houses
to become customers of the bank. The bank also has corporation with
brokers so that they can get more customers through the brokers. Another way that
Handels acquire new customers is to arrange meeting with those who are interested
trading stock. Handels also try to win the workers of its corporate
customers to
\par}{\phpg\posx1417\pvpg\posy1421\absw9269\absh4215 \sl-275 \f10 \fs21 \cf0 become
customers of the bank. Again Handels goes out to companies to meet new
customers. \par
}
\cf0 5.2.3{\fs23 Benefits}{\fs23 of}{\fs23 CRM}{\fs23 initiatives}{\fs23 at}
{\fs23 Handelsbanken }
{\b0 The}{\b0 main}{\b0 benefits}{\b0 that}{\b0 the}{\b0 bank}{\b0
wants}{\b0 to}{\b0 get}{\b0 are}{\b0 higher}{\b0 customer}{\b0
retention}{\b0 and }
{\b0 customer}{\b0 loyalty}{\b0 through}{\b0 higher}{\b0 customer}{\b0
satisfaction.}{\b0 They}{\b0 try}{\b0 to}{\b0 maintain}{\b0 the}{\b0 old }
{\b0 customers}{\b0 and}{\b0 make}{\b0 sure}{\b0 that}{\b0 they}{\b0 are}{\b0
highly}{\b0 satisfied.}{\b0 At}{\b0 Handels}{\b0 they}{\b0 try}{\b0 as}{\b0
much }
{\b0 as}{\b0 possible}{\b0 to}{\b0 treat}{\b0 current}{\b0 customers}{\b0
very}{\b0 carefully}{\b0 and}{\b0 in}{\b0 a}{\b0 very}{\b0 proper}{\b0 way}
{\b0 so}{\b0 that }
{\b0 they}{\b0 will}{\b0 continue}{\b0 to}{\b0 stay}{\b0 with}{\b0 the}
{\b0 bank.}{\b0 Some}{\b0 of}{\b0 the}{\b0 major}{\b0 benefits}{\b0
that}{\b0 Handels }
{\b0 intend}{\b0 to}{\b0 achieve}{\b0 and}{\b0 what}{\b0 they}{\b0 have}{\b0
achieved}{\b0 so}{\b0 far}{\b0 can}{\b0 be}{\b0 seen}{\b0 in}{\b0 the}{\b0
following: }
Revenue and profitability enhancement{\b0 :}{\b0 According}{\b0 to}{\b0
Handels,}{\b0 the}{\b0 bottom}{\b0 line}{\b0 is }
{\b0 higher}{\b0 profitability.}{\b0 Therefore}{\b0 the}{\b0 main}{\b0
benefit}{\b0 they}{\b0 want}{\b0 to}{\b0 achieve}{\b0 as}{\b0 a}{\b0 bank}
{\b0 is}{\b0 how }
{\b0 they}{\b0 will}{\b0 get}{\b0 higher}{\b0 profitability.}{\b0 For}
{\b0 them}{\b0 they}{\b0 want}{\b0 to}{\b0 achieve}{\b0 this}{\b0
target}{\b0 through }
{\b0 increase}{\b0 customer}{\b0 satisfaction}{\b0 and}{\b0 retention. }
Cost Savings and reduction{\b0 :}{\b0 At}{\b0 Handels,}{\b0 one}{\b0 of}{\b0
the}{\b0 main}{\b0 goals}{\b0 is}{\b0 to}{\b0 become}{\b0 the }
{\b0 lowest}{\b0 operating}{\b0 cost}{\b0 company}{\b0 than}{\b0 all}{\b0
the}{\b0 banks}{\b0 in}{\b0 Sweden}{\b0 and}{\b0 the}{\b0 Nordic}{\b0
region. }
{\b0 The}{\b0 bank}{\b0 believes}{\b0 that,}{\b0 as}{\b0 long}{\b0 as}{\b0
their}{\b0 current}{\b0 customers}{\b0 are}{\b0 satisfied}{\b0 and}{\b0 are}
{\b0 loyal }
{\b0 to}{\b0 the}{\b0 bank,}{\b0 they}{\b0 will}{\b0 remain}{\b0 as}{\b0
customers}{\b0 of}{\b0 the}{\b0 bank}{\b0 and}{\b0 therefore}{\b0 the}{\b0
money}{\b0 spent }
{\b0 on}{\b0 advertising}{\b0 to}{\b0 acquire}{\b0 new}{\b0 customers}{\b0
are}{\b0 saved.}{\b0 Also}{\b0 through}{\b0 personalization,}{\b0 the }
{\b0 bank}{\b0 is}{\b0 able}{\b0 to}{\b0 provide}{\b0 the}{\b0 right}
{\b0 communication,}{\b0 product}{\b0 and}{\b0 service}{\b0 to}{\b0
the}{\b0 right }
{\b0 customer}{\b0 at}{\b0 the}{\b0 right}{\b0 time}{\b0 and}{\b0 this}{\b0
brings}{\b0 about}{\b0 higher}{\b0 productivity}{\b0 and}{\b0 efficiency. }
Organizational Impact:{\b0 Handels}{\b0 want}{\b0 to}{\b0 get}{\b0
the}{\b0 highest}{\b0 point}{\b0 from}{\b0 Customer }
{\b0 Satisfaction}{\b0 Index}{\b0 (CSI)}{\b0 that}{\b0 is}{\b0 conducted}
{\b0 each}{\b0 year}{\b0 by}{\b0 the}{\b0 Swedish}{\b0 National }
{\b0 Statistics}{\b0 Bureau}{\b0 than}{\b0 any}{\b0 other}{\b0 bank}{\b0 in}
{\b0 Sweden.}{\b0 As}{\b0 matter}{\b0 of}{\b0 fact}{\b0 Handels}{\b0 has}
{\b0 been }
{\b0 on}{\b0 top}{\b0 of}{\b0 the}{\b0 CSI}{\b0 for}{\b0 almost}{\b0 every}
{\b0 year}{\b0 for}{\b0 about}{\b0 10}{\b0 years}{\b0 now.}{\b0 They}{\b0
believe}{\b0 that}{\b0 this }
{\b0 has}{\b0 given}{\b0 them}{\b0 a}{\b0 special}{\b0 image}{\b0 as}
{\b0 a}{\b0 bank}{\b0 in}{\b0 the}{\b0 minds}{\b0 of}{\b0 its}{\b0
customers}{\b0 and}{\b0 the }
{\b0 general}{\b0 public}{\b0 as}{\b0 a}{\b0 whole.}{\b0 Another}{\b0 impact}
{\b0 that}{\b0 Handels}{\b0 think}{\b0 it}{\b0 is}{\b0 making}{\b0 is}{\b0
the}{\b0 way }
{\b0 they}{\b0 are}{\b0 expanding}{\b0 in}{\b0 the}{\b0 Nordic}{\b0 region}
{\b0 and}{\b0 also}{\b0 other}{\b0 parts}{\b0 of}{\b0 world}{\b0 like}{\b0
the}{\b0 UK. }\par
}
38 \par
}
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\par
}
\fs21 \cf0 5.3 F�reningsSparbanken
{\b0 F�reningsSparbanken}{\b0 was}{\b0 founded}{\b0 in}{\b0 1997,}{\b0 by}{\b0
the}{\b0 merger}{\b0 of}{\b0 F�reningsbanken}{\b0 and }
{\b0 Sparbanken}{\b0 Sverie.}{\b0 The}{\b0 bank's}{\b0 composite}{\b0
history}{\b0 dates}{\b0 all}{\b0 the}{\b0 way}{\b0 back}{\b0 to}{\b0
1820, }
{\b0 when}{\b0 Sweden's}{\b0 first}{\b0 savings}{\b0 bank}{\b0 was}{\b0
founded,}{\b0 in}{\b0 Gothenburg,}{\b0 on}{\b0 a}{\b0 European }
{\b0 model. }
{\b0 F�reningsSparbanken}{\b0 is}{\b0 one}{\b0 of}{\b0 the}{\b0 largest}{\b0
banking}{\b0 groups}{\b0 in}{\b0 the}{\b0 Nordic}{\b0 area.}{\b0 At}{\b0 the
}
{\b0 turn}{\b0 of}{\b0 the}{\b0 year}{\b0 2003-2004,}{\b0 the}{\b0 group}{\b0
had}{\b0 approximately}{\b0 14,400}{\b0 employees}{\b0 of}{\b0 which }
{\b0 9,500}{\b0 are}{\b0 in}{\b0 Sweden.}{\b0 F�reningsSparbanken}{\b0
group}{\b0 has}{\b0 about}{\b0 4.3}{\b0 million}{\b0 private }
{\b0 customers}{\b0 in}{\b0 Sweden}{\b0 and}{\b0 4}{\b0 million}{\b0 in}{\b0
the}{\b0 Baltic}{\b0 States.}{\b0 Independent}{\b0 savings}{\b0 banks }
{\b0 and}{\b0 partly}{\b0 owned}{\b0 banks}{\b0 have}{\b0 an}{\b0
additional}{\b0 1.7}{\b0 million}{\b0 private}{\b0 customers.}{\b0 The }
{\b0 strength}{\b0 of}{\b0 F�reningsSparbanken}{\b0 lies}{\b0 in}{\b0 its}{\b0
unique}{\b0 local}{\b0 presence,}{\b0 a}{\b0 result}{\b0 of}{\b0 their }
{\b0 comprehensive}{\b0 network}{\b0 of}{\b0 branches}{\b0 which}{\b0 is}
{\b0 divided}{\b0 into}{\b0 93}{\b0 local}{\b0 banks}{\b0 and}{\b0
well }
{\b0 developed}{\b0 opportunities}{\b0 for}{\b0 its}{\b0 customers}{\b0
to}{\b0 have}{\b0 access}{\b0 through}{\b0 Internet}{\b0 and }
{\b0 telephone}{\b0 banking.}{\b0 The}{\b0 bank}{\b0 has}{\b0 the}{\b0
largest}{\b0 Internet}{\b0 bank,}{\b0 with}{\b0 about}{\b0 2.6}{\b0
million }
{\b0 customers}{\b0 in}{\b0 Sweden.}{\b0 Also,}{\b0 it}{\b0 is}{\b0
the}{\b0 largest}{\b0 telephone}{\b0 bank,}{\b0 with}{\b0 about}{\b0 3}
{\b0 million }
{\b0 customers. }
\cf0 {\b0 One}{\b0 of}{\b0 the}{\b0 major}{\b0 goals}{\b0 of}{\b0
F�reningsSparbanken}{\b0 is}{\b0 to}{\b0 make}{\b0 it}{\b0 possible}{\b0 to}
{\b0 for}{\b0 about }
{\b0 99%}{\b0 of}{\b0 all}{\b0 the}{\b0 decisions}{\b0 to}{\b0 be}{\b0 made}
{\b0 at}{\b0 the}{\b0 local}{\b0 bank}{\b0 by}{\b0 people}{\b0 who}{\b0
are}{\b0 working }
{\b0 there}{\b0 and}{\b0 know}{\b0 the}{\b0 customers}{\b0 and}{\b0
the}{\b0 local}{\b0 market}{\b0 better.}{\b0 This}{\b0 creates}{\b0
efficient }
{\b0 decentralized}{\b0 banking.}{\b0 Local}{\b0 presence,}{\b0 in}{\b0
combination}{\b0 with}{\b0 shared}{\b0 global}{\b0 resources, }
{\b0 form}{\b0 the}{\b0 foundation}{\b0 of}{\b0
F�reningsSparbanken's}{\b0 alliance}{\b0 strategy. }
{\b0 F�reningsSparbanken}{\b0 has}{\b0 alliances}{\b0 in}{\b0 the}{\b0
Nordic}{\b0 region}{\b0 and}{\b0 the}{\b0 Baltic}{\b0 Sates.}{\b0 In }
{\b0 addition,}{\b0 F�reningsSparbanken}{\b0 has}{\b0 subsidiaries}{\b0 in}{\b0
Luxembourg,}{\b0 S.A.}{\b0 The}{\b0 bank}{\b0 also }
{\b0 has}{\b0 international}{\b0 branches}{\b0 in}{\b0 New}{\b0 York,}{\b0
London,}{\b0 Oslo,}{\b0 Tokyo}{\b0 and}{\b0 Shanghai. }
\cf0 {\b0 F�reningsSparbanken}{\b0 offers}{\b0 competitive}{\b0 products}{\b0
and}{\b0 services}{\b0 through}{\b0 the}{\b0 following }
{\b0 subsidiaries: }
\cf0 \fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Robur-}{\b0 for}{\b0 fund}{\b0
management }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Spintab-}{\b0 for}{\b0 mortgage }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 Swedbank-}{\b0 Markets}{\b0 for}
{\b0 investment}{\b0 banking }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 }{\b0 F�reningsSparbanken}{\b0 Finance}
{\b0 for}{\b0 finance}{\b0 company }
\cf0 {\b0 With}{\b0 regard}{\b0 to}{\b0 the}{\b0 both}{\b0 private}{\b0 and}
{\b0 corporate}{\b0 markets,}{\b0 in}{\b0 the}{\b0 areas}{\b0 of}{\b0
savings}{\b0 and }
{\b0 investments,}{\b0 the}{\b0 bank}{\b0 is}{\b0 a}{\b0 market}{\b0 leader}
{\b0 when}{\b0 it}{\b0 comes}{\b0 to}{\b0 household}{\b0 savings,}{\b0
fund }
{\b0 savings}{\b0 and}{\b0 various}{\b0 kinds}{\b0 of}{\b0 individual}
{\b0 pension}{\b0 and}{\b0 savings}{\b0 schemes.}{\b0 Again}{\b0 this }
{\b0 bank}{\b0 is}{\b0 the}{\b0 second}{\b0 largest}{\b0 real}{\b0
estate}{\b0 agent}{\b0 and}{\b0 lender}{\b0 for}{\b0 housing.}{\b0 The}
{\b0 bank's }
{\b0 share}{\b0 of}{\b0 the}{\b0 corporate}{\b0 market}{\b0 is}{\b0 20-30%}
{\b0 when}{\b0 it}{\b0 comes}{\b0 to}{\b0 deposits,}{\b0 lending,}{\b0
leasing }
{\b0 and}{\b0 financing.}{\b0 The}{\b0 bank}{\b0 is}{\b0 also}{\b0 a}{\b0
leader}{\b0 and}{\b0 it}{\b0 has}{\b0 a}{\b0 major}{\b0 stake}{\b0 for}{\b0
payments. }
\cf0 {\b0 F�reningsSparbanken}{\b0 has}{\b0 a}{\b0 total}{\b0 of}{\b0 SEK}{\b0
1,002}{\b0 billion}{\b0 of}{\b0 balance}{\b0 sheet,}{\b0 deposit}{\b0 of }
{\b0 275}{\b0 billion}{\b0 and}{\b0 lending}{\b0 total}{\b0 of}{\b0 826,4}
{\b0 billion.}{\b0 The}{\b0 operating}{\b0 profit}{\b0 for}{\b0 the}{\b0
year}{\b0 2003 }
{\b0 was}{\b0 SEK}{\b0 9}{\b0 564}{\b0 million}{\b0 and}{\b0 the}{\b0
return}{\b0 on}{\b0 equity}{\b0 was}{\b0 15.9%.}{\b0 F�reningsSparbanken's }
\fi8317 {\b0 \fs14 th }
{\b0 share}{\b0 is}{\b0 listed}{\b0 on}{\b0 the}{\b0 Stockholm}{\b0 Stock}
{\b0 Exchange}{\b0 and}{\b0 its}{\b0 share}{\b0 was}{\b0 the}{\b0 15}{\b0
most }
{\b0 active}{\b0 traded}{\b0 share}{\b0 on}{\b0 the}{\b0
exchange}{\b0 in}{\b0 the}{\b0 year}{\b0 2004}{\b0 (www. }
{\field{\*\fldinst {\b HYPERLINK}{\b "http://www.F�reningsSparbanken.se"}}
{\fldrslt{{\b0 F�reningsSparbanken.se) }
}}}\par
}
39 \par
}
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1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
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\par
}
\cf0 5.3.1 CRM at F�reningsSparbanken
{\b0 According}{\b0 to}{\b0 Mr.}{\b0 Axel}{\b0 Hakansson,}{\b0 the}{\b0
branch}{\b0 manager}{\b0 at}{\b0 the}{\b0 Lulea}{\b0 branch}{\b0 of}{\b0 the
}
{\b0 bank}{\b0 during}{\b0 our}{\b0 interactions}{\b0 with,}{\b0 for}{\b0
them}{\b0 at}{\b0 F�reningsSparbanken,}{\b0 CRM}{\b0 is }
{\b0 relationship}{\b0 and}{\b0 the}{\b0 most}{\b0 important}{\b0 aspect}{\b0
of}{\b0 the}{\b0 relationship}{\b0 is}{\b0 the}{\b0 way}{\b0 they}{\b0
interact }
{\b0 with}{\b0 the}{\b0 numerous}{\b0 customers.}{\b0 This}{\b0 was}{\b0
started}{\b0 in}{\b0 the}{\b0 last}{\b0 three}{\b0 years.}{\b0 The}{\b0
bank}{\b0 tries }
{\b0 to}{\b0 meet}{\b0 all}{\b0 the}{\b0 customers}{\b0 each}{\b0 year}{\b0
and}{\b0 find}{\b0 out}{\b0 what}{\b0 they}{\b0 think}{\b0 about}{\b0 the}
{\b0 bank}{\b0 and }
{\b0 also}{\b0 to}{\b0 see}{\b0 whether}{\b0 they}{\b0 are}{\b0 satisfied}
{\b0 or}{\b0 not.}{\b0 As}{\b0 part}{\b0 of}{\b0 this}{\b0 initiative,}{\b0
the}{\b0 bank}{\b0 took }
{\b0 steps}{\b0 to}{\b0 contract}{\b0 a}{\b0 group}{\b0 at}{\b0 the}{\b0
university}{\b0 to}{\b0 conduct}{\b0 a}{\b0 survey}{\b0 for}{\b0 them}{\b0
to}{\b0 see}{\b0 where }
{\b0 its}{\b0 weaknesses}{\b0 are}{\b0 with}{\b0 regard}{\b0 to}{\b0 the}{\b0
way}{\b0 they}{\b0 treat}{\b0 the}{\b0 customers.}{\b0 Again}{\b0 they}{\b0
also }
{\b0 follow}{\b0 with}{\b0 keen}{\b0 interests}{\b0 the}{\b0 survey}{\b0
that}{\b0 is}{\b0 conducted}{\b0 each}{\b0 year}{\b0 by}{\b0 an}{\b0
independent }
{\b0 body}{\b0 for}{\b0 all}{\b0 bank}{\b0 customers}{\b0 in}{\b0 Sweden.}
{\b0 This}{\b0 is}{\b0 called}{\b0 Customer}{\b0 Satisfaction}{\b0 Index }
{\b0 (CSI).}{\b0 They}{\b0 believe}{\b0 that}{\b0 the}{\b0 result}{\b0
of}{\b0 this}{\b0 can}{\b0 also}{\b0 tell}{\b0 them}{\b0 how}{\b0
their}{\b0 customers }
{\b0 perceive}{\b0 them.}{\b0 And}{\b0 they}{\b0 also}{\b0 intend}{\b0 take}
{\b0 steps}{\b0 to}{\b0 work}{\b0 on}{\b0 their}{\b0 weakness}{\b0 if}{\b0
the}{\b0 result }
{\b0 is}{\b0 not}{\b0 favorable}{\b0 to}{\b0 them. }\par
}
\cf0 5.3.2 Objectives and strategies of CRM at F�reningsSparbanken
{\b0 The}{\b0 main}{\b0 objective}{\b0 of}{\b0 CRM}{\b0 in}{\b0
F�reningsSparbanken}{\b0 is}{\b0 to}{\b0 build}{\b0 higher}{\b0
customer }
{\b0 retention}{\b0 and}{\b0 higher}{\b0 customer}{\b0 loyalty.}{\b0 The}
{\b0 bank}{\b0 hopes}{\b0 to}{\b0 achieve}{\b0 this}{\b0 through}{\b0
a }
{\b0 number}{\b0 of}{\b0 initiatives}{\b0 and}{\b0 strategies.}{\b0 Some}{\b0
of}{\b0 the}{\b0 main}{\b0 initiatives}{\b0 and}{\b0 strategies}{\b0 are }
{\b0 as}{\b0 follows: }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 } Customer interaction:{\b0
F�reningsSparbanken}{\b0 interacts}{\b0 with}{\b0 its}{\b0 customers }
\fi720 {\b0 through}{\b0 many}{\b0 channels}{\b0 because}{\b0 they}{\b0 see}
{\b0 communication}{\b0 as}{\b0 very}{\b0 crucial}{\b0 for }
\fi720 {\b0 them}{\b0 to}{\b0 build}{\b0 customer}{\b0 loyalty.}{\b0
These}{\b0 channels}{\b0 include,}{\b0 face-to-face }
\fi720 {\b0 interaction}{\b0 at}{\b0 the}{\b0 branches}{\b0 and}{\b0
offices,}{\b0 ATM,}{\b0 Internet,}{\b0 and}{\b0 telephone.}{\b0 The }
\fi720 {\b0 bank}{\b0 meets}{\b0 its}{\b0 customer}{\b0 at}{\b0 least}{\b0
once}{\b0 a}{\b0 year}{\b0 through}{\b0 the}{\b0 interaction}{\b0 and}{\b0
try}{\b0 to }
\fi720 {\b0 study}{\b0 their}{\b0 personal}{\b0 economy}{\b0 and}{\b0
finances}{\b0 and}{\b0 give}{\b0 them}{\b0 the}{\b0 necessary }
\fi720 {\b0 advice.}{\b0 There}{\b0 are}{\b0 ten}{\b0 groups}{\b0
of}{\b0 advisors}{\b0 who}{\b0 are}{\b0 in}{\b0 charge}{\b0 of}
{\b0 this }
\fi720 {\b0 professionally. }
\fi360 {\f0\fs28 \bullet }{\b0 \f40 } Customer identification and
retention:{\b0 At}{\b0 F�reningsSparbanken,}{\b0 they }
\fi720 {\b0 believe}{\b0 that}{\b0 it}{\b0 is}{\b0 good}{\b0 to}{\b0
acquire}{\b0 new}{\b0 customers.}{\b0 Therefore}{\b0 they}{\b0 go}{\b0
to }
\fi720 {\b0 university}{\b0 campuses}{\b0 to}{\b0 meet}{\b0 students}{\b0 to}
{\b0 attract}{\b0 them}{\b0 to}{\b0 become}{\b0 the}{\b0 bank's }
\fi720 {\b0 customers}{\b0 and}{\b0 also,}{\b0 they}{\b0 also}{\b0 go}{\b0
to}{\b0 companies}{\b0 to}{\b0 meet}{\b0 the}{\b0 workers}{\b0 especially }
\fi720 {\b0 the}{\b0 staff}{\b0 of}{\b0 its}{\b0 corporate}{\b0
customers.}{\b0 However,}{\b0 they}{\b0 believe}{\b0 in}{\b0 customer }
\fi720 {\b0 retention}{\b0 and}{\b0 loyalty}{\b0 more}{\b0 than}{\b0
acquiring}{\b0 new}{\b0 customers.}{\b0 They}{\b0 rather}{\b0 spend }
\fi720 {\b0 much}{\b0 time}{\b0 to}{\b0 concentrate}{\b0 on}{\b0 the}{\b0
existing}{\b0 customers}{\b0 because}{\b0 they}{\b0 thin}{\b0 they }
\fi720 {\b0 have}{\b0 so}{\b0 many}{\b0 customers}{\b0 to}{\b0 take}{\b0
care}{\b0 of,}{\b0 also}{\b0 they}{\b0 believe}{\b0 that}{\b0 it}{\b0
better}{\b0 to}{\b0 take }
\fi720 {\b0 good}{\b0 care}{\b0 of}{\b0 your}{\b0 own}{\b0 existing}{\b0
customers}{\b0 that}{\b0 to}{\b0 go}{\b0 out}{\b0 hunting}{\b0 the}{\b0
customers }
\fi720 {\b0 of}{\b0 other}{\b0 banks.}{\b0 One}{\b0 major}{\b0 goal}{\b0
of}{\b0 F�reningsSparbanken}{\b0 is}{\b0 to}{\b0 make}{\b0 their }
\fi720 {\b0 customers}{\b0 more}{\b0 loyal}{\b0 to}{\b0 them.}{\b0 For}{\b0
example}{\b0 they}{\b0 try}{\b0 to}{\b0 convince}{\b0 the}{\b0 customers }
\fi720 {\b0 who}{\b0 do}{\b0 some}{\b0 type}{\b0 of}{\b0 business}{\b0
with}{\b0 other}{\b0 banks}{\b0 to}{\b0 do}{\b0 all}{\b0 their}{\b0
banking }
\fi720 {\b0 business}{\b0 with}{\b0 them.}{\b0 In}{\b0 this}{\b0 case}{\b0
what}{\b0 they}{\b0 do}{\b0 is}{\b0 that,}{\b0 they}{\b0 will}{\b0 try}{\b0
to}{\b0 give}{\b0 them }
\fi720 {\b0 a}{\b0 better}{\b0 deal}{\b0 than}{\b0 the}{\b0 other}{\b0 bank}
{\b0 so}{\b0 that}{\b0 that}{\b0 particular}{\b0 customer}{\b0 will}{\b0 be}
{\b0 loyal }
\fi719 {\b0 and}{\b0 do}{\b0 all}{\b0 his}{\b0 or}{\b0 her}{\b0 banking}{\b0
business}{\b0 with}{\b0 them. }\par
}
40 \par
}
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\par
}
\bullet }\f40 \fs21 \cf0 {\b \f10 Customer}{\b \f10 differentiation:}{\f10
Customer}{\f10 differentiation}{\f10 is}{\f10 one}{\f10 of}{\f10
the}{\f10 main }
{\f10 strategies}{\f10 that}{\f10 F�reningsSparbanken}{\f10 uses}{\f10 to}
{\f10 achieve}{\f10 the}{\f10 objectives}{\f10 of}{\f10 its }
{\f10 CRM}{\f10 initiatives.}{\f10 The}{\f10 bank}{\f10 has}{\f10
categorized}{\f10 its}{\f10 customers}{\f10 into}{\f10 groups}{\f10 and }
{\f10 assigned}{\f10 personal}{\f10 bankers}{\f10 to}{\f10 each}{\f10 of}
{\f10 these}{\f10 groups}{\f10 and}{\f10 these}{\f10 personal }
{\f10 bankers}{\f10 are}{\f10 responsible}{\f10 for}{\f10 the}{\f10 needs}
{\f10 of}{\f10 these}{\f10 groups}{\f10 when}{\f10 it}{\f10 comes}{\f10 to}
{\f10 their }
{\f10 banking}{\f10 and}{\f10 also}{\f10 personal}{\f10 finances.}{\f10
For}{\f10 instance,}{\f10 they}{\f10 have}{\f10 a}{\f10 personal }
{\f10 banker}{\f10 in}{\f10 charge}{\f10 of}{\f10 the}{\f10 youth}{\f10
especially}{\f10 university}{\f10 students.}{\f10 One}{\f10 for}{\f10 the
}
{\f10 working}{\f10 class}{\f10 and}{\f10 pensioners}{\f10 and}{\f10 so}{\f10
on}{\f10 and}{\f10 so}{\f10 forth. }\par
}
\bullet }\f40 \fs21 \cf0 {\b \f10 Personalization}{\b \f10 or}{\b \f10
customization}{\b \f20 :}{\f10 According}{\f10 to}{\f10 the}{\f10 bank,}{\f10
they}{\f10 use}{\f10 to}{\f10 treat }
{\f10 all}{\f10 customers}{\f10 the}{\f10 same}{\f10 in}{\f10 the}{\f10
last}{\f10 ten}{\f10 years}{\f10 and}{\f10 they}{\f10 realized}{\f10
that}{\f10 there}{\f10 is }
{\f10 bound}{\f10 to}{\f10 be}{\f10 a}{\f10 problem}{\f10 if}{\f10 they}{\f10
continue}{\f10 to}{\f10 do}{\f10 that.}{\f10 So}{\f10 they}{\f10 have}{\f10
decided}{\f10 to }
{\f10 treat}{\f10 each}{\f10 and}{\f10 every}{\f10 customer}{\f10 according}
{\f10 to}{\f10 his}{\f10 or}{\f10 her}{\f10 personal}{\f10 unique}{\f10
needs }
{\f10 and}{\f10 demands}{\f10 and}{\f10 also}{\f10 his}{\f10 or}{\f10 her}
{\f10 personal}{\f10 financial}{\f10 situation. }
{\b \f10 5.3.3}{\b \f10 Benefits}{\b \f10 of}{\b \f10 CRM}{\b \f10
initiatives}{\b \f10 at}{\b \f10 F�reningsSparbanken }
{\f10 The}{\f10 main}{\f10 benefits}{\f10 of}{\f10 CRM}{\f10 at}{\f10
F�reningsSparbanken}{\f10 are,}{\f10 higher}{\f10 profitability}{\f10 and }
increase}{\f10 revenue}{\f10 and}{\f10 also}{\f10 improve}{\f10
communication}{\f10 between}{\f10 the}{\f10 bank}{\f10 and}{\f10 its }
customers.}{\f10 The}{\f10 main}{\f10 benefits}{\f10 can}{\f10 be}{\f10 seen}
{\f10 in}{\f10 the}{\f10 areas}{\f10 below: }
{\f0\fs28 \bullet }{\b \f10 Revenue}{\b \f10 and}{\b \f10 profitability}{\b
\f10 enhancement:}{\f10 At}{\f10 F�reningsSparbanken,}{\f10 they }
{\f10 believe}{\f10 that,}{\f10 the}{\f10 major}{\f10 benefit}{\f10 is}{\f10
higher}{\f10 profitability}{\f10 and}{\f10 increase}{\f10 revenue.}{\f10 For }
{\f10 example}{\f10 they}{\f10 have}{\f10 had}{\f10 so}{\f10 much}{\f10
revenue}{\f10 for}{\f10 the}{\f10 last}{\f10 two}{\f10 years}{\f10 that}{\f10
the}{\f10 bank }
{\f10 is}{\f10 planning}{\f10 to}{\f10 purchase}{\f10 a}{\f10 very}{\f10
big}{\f10 facility}{\f10 somewhere}{\f10 in}{\f10 Europe.}{\f10 This}
{\f10 has }
{\f10 come}{\f10 as}{\f10 a}{\f10 result}{\f10 of}{\f10 its}{\f10 good}
{\f10 CRM}{\f10 initiative.}{\f10 It}{\f10 helps}{\f10 the}{\f10 bank}
{\f10 to}{\f10 do}{\f10 cross }
{\f10 selling}{\f10 of}{\f10 products}{\f10 and}{\f10 services,}{\f10 and}
{\f10 also}{\f10 do}{\f10 up}{\f10 selling. }
{\f0\fs28 \bullet }{\b \f10 Cost}{\b \f10 savings}{\b \f10 and}{\b \f10
reduction:}{\f10 One}{\f10 of}{\f10 the}{\f10 areas}{\f10 that}{\f10
the}{\f10 bank}{\f10 think}{\f10 it}{\f10 has }
{\f10 some}{\f10 benefits}{\f10 is}{\f10 cost.}{\f10 They}{\f10 believe}{\f10
that}{\f10 improved}{\f10 customer}{\f10 communications }
{\f10 helps}{\f10 them}{\f10 to}{\f10 reduce}{\f10 both}{\f10 time}{\f10 and}
{\f10 cost. }\par
}
\bullet }\f40 \fs21 \cf0 {\b \f10 Organizational}{\b \f10 impact:}{\f10
Again}{\f10 F�reningsSparbanken}{\f10 believes}{\f10 that,}{\f10 there}{\f10
has }
\fi360 {\f10 been}{\f10 a}{\f10 big}{\f10 impact}{\f10 by}{\f10
undertaking}{\f10 its}{\f10 CRM}{\f10 strategies}{\f10 and}{\f10
initiatives.}{\f10 For }
\fi360 {\f10 instance,}{\f10 they}{\f10 believe}{\f10 it}{\f10 has}{\f10
helped}{\f10 in}{\f10 increasing}{\f10 customer}{\f10 satisfaction}{\f10
and }
\fi360 {\f10 thereby}{\f10 creating}{\f10 customer}{\f10 loyalty}{\f10 and}
{\f10 the}{\f10 image}{\f10 of}{\f10 the}{\f10 bank}{\f10 remains}{\f10 in}
{\f10 minds }
\fi360 {\f10 of}{\f10 its}{\f10 customers.}{\f10 Again}{\f10 they}{\f10
believe}{\f10 that}{\f10 it}{\f10 is}{\f10 now}{\f10 the}{\f10 number}
{\f10 one}{\f10 bank}{\f10 in }
\fi360 {\f10 Sweden}{\f10 lamented}{\f10 by}{\f10 Mr.}{\f10 Axel}{\f10
Hankansson,}{\f10 the}{\f10 Lulea}{\f10 branch}{\f10 manager. }\par
}
41 \par
}
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\par
}
\fs21 \cf0 6 Data Analysis
\cf0 {\b0\i In}{\b0\i the}{\b0\i previous}{\b0\i chapter,}{\b0\i the}{\b0\i
data}{\b0\i collected}{\b0\i in}{\b0\i this}{\b0\i study}{\b0\i was}
{\b0\i presented.}{\b0\i In}{\b0\i this }
{\b0\i chapter,}{\b0\i the}{\b0\i data}{\b0\i will}{\b0\i be}{\b0\i analyzed.}
{\b0\i This}{\b0\i data}{\b0\i will}{\b0\i be}{\b0\i analyzed}{\b0\i in}
{\b0\i two}{\b0\i parts;}{\b0\i first}{\b0\i within }
{\b0\i case}{\b0\i analysis}{\b0\i will}{\b0\i be}{\b0\i done}{\b0\i
where}{\b0\i the}{\b0\i data}{\b0\i will}{\b0\i be}{\b0\i compared}{\b0\i
with}{\b0\i the}{\b0\i theories}{\b0\i in }
{\b0\i chapter}{\b0\i two.}{\b0\i Secondly,}{\b0\i a}{\b0\i cross}{\b0\i
case}{\b0\i analysis,}{\b0\i where}{\b0\i all}{\b0\i the}{\b0\i three}
{\b0\i cases}{\b0\i will}{\b0\i be }
{\b0\i compared}{\b0\i with}{\b0\i each}{\b0\i other.}{\b0\i The}{\b0\i
analysis}{\b0\i will}{\b0\i be}{\b0\i presented}{\b0\i in}{\b0\i a}{\b0\i
way}{\b0\i that}{\b0\i addresses }
{\b0\i the}{\b0\i two}{\b0\i research}{\b0\i questions}{\b0\i of}{\b0\i this}
{\b0\i study}{\b0 . }
\cf0 \fi60 6.1 Nordea Bank
\cf0 \fi126 6.1.1 Objectives and strategies of CRM at Nordea Bank
\cf0 \fi60 {\b0 When}{\b0 it}{\b0 comes}{\b0 to}{\b0 customer}{\b0
interaction}{\b0 as}{\b0 part}{\b0 of}{\b0 CRM}{\b0 strategies}{\b0 at}
{\b0 Nordea, }
\fi60 {\b0 appropriate}{\b0 channel}{\b0 of}{\b0 communication}{\b0 is}{\b0
used}{\b0 base}{\b0 on}{\b0 the}{\b0 preferences}{\b0 of}{\b0 the }
\fi60 {\b0 customer}{\b0 according}{\b0 to}{\b0 the}{\b0 group}{\b0 that}{\b0
the}{\b0 customer}{\b0 belongs}{\b0 to.}{\b0 Again}{\b0 Nordea}{\b0 try}{\b0
to }
\fi60 {\b0 respond}{\b0 appropriately}{\b0 according}{\b0 to}{\b0 the}{\b0
needs}{\b0 of}{\b0 the}{\b0 customer.}{\b0 This}{\b0 is}{\b0 consistent}{\b0
with }
\fi60 {\b0 (Kim,}{\b0 Suh}{\b0 and}{\b0 Hwan}{\b0 2004).}{\b0 According}{\b0
to}{\b0 (Chye}{\b0 and}{\b0 Gerry}{\b0 200)}{\b0 customers}{\b0 should }
\fi60 {\b0 be}{\b0 differentiated}{\b0 with}{\b0 respect}{\b0 to}{\b0
profitability.}{\b0 This}{\b0 is}{\b0 in}{\b0 line}{\b0 with}{\b0 what}
{\b0 we}{\b0 found}{\b0 at }
\fi60 {\b0 Nordea}{\b0 bank}{\b0 where}{\b0 customers}{\b0 have}{\b0
been}{\b0 grouped}{\b0 into}{\b0 three}{\b0 categories}{\b0 base}{\b0
on }
\fi60 {\b0 their}{\b0 profitability;}{\b0 the}{\b0 groups}{\b0 are}{\b0
Gold}{\b0 customers,}{\b0 silver}{\b0 customers}{\b0 and}{\b0 ordinary }
\fi60 {\b0 customers}{\b0 as}{\b0 one}{\b0 of}{\b0 the}{\b0 bank's}{\b0
CRM}{\b0 strategies.}{\b0 With}{\b0 regards}{\b0 to}{\b0 personalization
}
\fi60 {\b0 and}{\b0 customization}{\b0 as}{\b0 a}{\b0 strategy}{\b0 of}
{\b0 CRM,}{\b0 according}{\b0 to}{\b0 Peppers}{\b0 (1999)}{\b0 each }
\fi60 {\b0 customer}{\b0 should}{\b0 be}{\b0 treated}{\b0 uniquely}{\b0 and}
{\b0 differently}{\b0 according}{\b0 to}{\b0 his}{\b0 or}{\b0 her}{\b0
unique }
\fi60 {\b0 needs}{\b0 and}{\b0 demands.}{\b0 Here}{\b0 Nordea}{\b0 as}
{\b0 a}{\b0 bank}{\b0 also}{\b0 believes}{\b0 what}{\b0 Peppers}{\b0
1999 }
\fi60 {\b0 stated,}{\b0 that}{\b0 is}{\b0 why}{\b0 they}{\b0 also}{\b0 try}
{\b0 to}{\b0 help}{\b0 each}{\b0 and}{\b0 every}{\b0 customer}{\b0 to}{\b0
achieve}{\b0 his}{\b0 or }
\fi60 {\b0 her}{\b0 goals}{\b0 and}{\b0 aspirations}{\b0 in}{\b0 life. }
\cf0 \fi60 6.1.2 Benefits of CRM at Nordea Bank.
\cf0 \fi60 {\b0 Nordea}{\b0 sees}{\b0 higher}{\b0 profitability}{\b0 as}
{\b0 one}{\b0 of}{\b0 the}{\b0 major}{\b0 benefits}{\b0 of}{\b0 CRM.}
{\b0 The}{\b0 bank }
\fi60 {\b0 believes}{\b0 that}{\b0 increase}{\b0 customer}{\b0
satisfaction,}{\b0 which}{\b0 leads}{\b0 to}{\b0 customer}{\b0 loyalty,}
{\b0 will }
\fi60 {\b0 bring}{\b0 higher}{\b0 profitability}{\b0 to}{\b0 the}{\b0 bank.}
{\b0 This}{\b0 is}{\b0 in}{\b0 line}{\b0 with}{\b0 what}{\b0 Newell}{\b0
(2000)}{\b0 states }
\fi60 {\b0 and}{\b0 it}{\b0 also}{\b0 confirmed}{\b0 by}{\b0 Swift}{\b0
(2001).}{\b0 When}{\b0 it}{\b0 comes}{\b0 to}{\b0 cost}{\b0 savings}{\b0
and}{\b0 reduction }
\fi60 {\b0 as}{\b0 one}{\b0 of}{\b0 the}{\b0 benefits}{\b0 of}{\b0 CRM,}{\b0
Gray}{\b0 and}{\b0 Byun}{\b0 (2001)}{\b0 indicated}{\b0 that,}{\b0 cost}{\b0
effective }
\fi60 {\b0 marketing}{\b0 campaign}{\b0 is}{\b0 helpful.}{\b0 Our}{\b0
investigations}{\b0 reveal}{\b0 that,}{\b0 the}{\b0 data}{\b0 we}{\b0
collected }
\fi60 {\b0 from}{\b0 Nordea}{\b0 bank}{\b0 is}{\b0 consistent}{\b0 with}
{\b0 the}{\b0 theory.}{\b0 With}{\b0 regards}{\b0 to}{\b0
organizational }
\fi60 {\b0 impact,}{\b0 Nordea}{\b0 believe}{\b0 improved}{\b0
organizational}{\b0 image}{\b0 is}{\b0 one}{\b0 of}{\b0 the}{\b0
benefits}{\b0 of }
\fi60 {\b0 CRM.}{\b0 However,}{\b0 according}{\b0 to}{\b0 Thompson}{\b0
(2004)}{\b0 competitive}{\b0 advantage}{\b0 is}{\b0 one}{\b0 of}{\b0 the }
\fi60 {\b0 benefits}{\b0 of}{\b0 CRM}{\b0 regarding}{\b0 the}{\b0
organizational}{\b0 impact.}{\b0 Again}{\b0 Jiang}{\b0 (2003)}{\b0 adds}{\b0
that }
\fi60 {\b0 effective}{\b0 customer}{\b0 relationship}{\b0 management}{\b0
by}{\b0 the}{\b0 organization}{\b0 is}{\b0 one}{\b0 of}{\b0 the }
\fi60 {\b0 benefits}{\b0 with}{\b0 regards}{\b0 to}{\b0 the}{\b0
organizational}{\b0 impact. }\par
}
42 \par
}
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\par
}
\f10 \fs21 \cf0 6.2 Handelsbanken
\cf0 6.2.1 Objectives and Strategies of CRM at Handelsbanken
\cf0 {\b0 According}{\b0 to}{\b0 Peppers}{\b0 (1999),}{\b0 organizations}
{\b0 should}{\b0 continue}{\b0 to}{\b0 learn}{\b0 about}{\b0 its }
{\b0 customers}{\b0 and}{\b0 understand}{\b0 them}{\b0 as}{\b0 part}{\b0
of}{\b0 its}{\b0 interactions}{\b0 with}{\b0 the}{\b0 customers.}{\b0
At }
{\b0 Handelsbanken,}{\b0 we}{\b0 found}{\b0 out}{\b0 that,}{\b0 with}{\b0
regards}{\b0 to}{\b0 customer}{\b0 interaction}{\b0 as}{\b0 part}{\b0 of }
{\b0 the}{\b0 bank's}{\b0 CRM}{\b0 strategies,}{\b0 they}{\b0 try}{\b0 to}
{\b0 learn}{\b0 more}{\b0 about}{\b0 the}{\b0 special}{\b0 situation}{\b0
of}{\b0 each }
{\b0 customer}{\b0 and}{\b0 we}{\b0 realized}{\b0 that}{\b0 this}{\b0 is}{\b0
in}{\b0 line}{\b0 with}{\b0 the}{\b0 theory.}{\b0 We}{\b0 found}{\b0 out}
{\b0 through }
{\b0 our}{\b0 investigations}{\b0 at}{\b0 Handelsbanken}{\b0 that}{\b0
personalization}{\b0 or}{\b0 customization}{\b0 is}{\b0 one}{\b0 of }
{\b0 the}{\b0 main}{\b0 CRM}{\b0 strategies}{\b0 they}{\b0 use.}{\b0 With}
{\b0 this,}{\b0 the}{\b0 bank}{\b0 believe}{\b0 that}{\b0 customers}{\b0
are}{\b0 the }
{\b0 same}{\b0 in}{\b0 general}{\b0 sense}{\b0 but}{\b0 they}{\b0 are}
{\b0 different}{\b0 according}{\b0 to}{\b0 their}{\b0 unique}{\b0
needs}{\b0 and }
{\b0 demands;}{\b0 therefore}{\b0 the}{\b0 bank}{\b0 tries}{\b0 to}{\b0
tailor}{\b0 specific}{\b0 products}{\b0 and}{\b0 services}{\b0 to}{\b0 each}
{\b0 and }
{\b0 every}{\b0 customer}{\b0 base}{\b0 on}{\b0 his}{\b0 or}{\b0 her}{\b0
specific}{\b0 needs.}{\b0 This}{\b0 goes}{\b0 with}{\b0 theory}{\b0
according}{\b0 to }
{\b0 Peppers}{\b0 (1999)}{\b0 who}{\b0 indicated}{\b0 that,}{\b0 customers}
{\b0 must}{\b0 be}{\b0 treated}{\b0 uniquely.}{\b0 That}{\b0 is}{\b0 also }
{\b0 supported}{\b0 by}{\b0 Kim,}{\b0 Suh}{\b0 and}{\b0 Hwang}{\b0 (2003);}
{\b0 they}{\b0 stated}{\b0 that,}{\b0 products}{\b0 and}{\b0 services }
{\b0 should}{\b0 be}{\b0 customized}{\b0 to}{\b0 customers. }
\cf0 {\b0 Theory}{\b0 indicates}{\b0 that,}{\b0 one}{\b0 of}{\b0 the}{\b0
objectives}{\b0 and}{\b0 strategies}{\b0 of}{\b0 CRM}{\b0 is}{\b0 to}
{\b0 identify }
{\b0 customers}{\b0 via}{\b0 marketing}{\b0 channels}{\b0 (Peppers}{\b0
1999).}{\b0 Further}{\b0 more,}{\b0 Deck}{\b0 (2004)}{\b0 also }
{\b0 supported}{\b0 this}{\b0 by}{\b0 saying}{\b0 that,}{\b0 one}{\b0
of}{\b0 the}{\b0 strategies}{\b0 of}{\b0 CRM}{\b0 is}{\b0 to}{\b0
discover}{\b0 new }
{\b0 customers.}{\b0 We}{\b0 found}{\b0 out}{\b0 through}{\b0 our}{\b0
investigations}{\b0 at}{\b0 Handelsbanken}{\b0 that,}{\b0 they }
{\b0 also}{\b0 try}{\b0 to}{\b0 acquire}{\b0 new}{\b0 customers}{\b0 as}{\b0
it}{\b0 is}{\b0 in}{\b0 the}{\b0 theory.}{\b0 They}{\b0 do}{\b0 this}{\b0
through}{\b0 meeting }
{\b0 different}{\b0 groups}{\b0 like}{\b0 employees}{\b0 at}{\b0 their}
{\b0 work}{\b0 premises.}{\b0 Again}{\b0 one}{\b0 of}{\b0 the}{\b0
ways }
{\b0 Handelsbanken}{\b0 try}{\b0 to}{\b0 get}{\b0 new}{\b0 customers}{\b0
is}{\b0 to}{\b0 meet}{\b0 those}{\b0 who}{\b0 are}{\b0 interested}{\b0
in }
{\b0 trading}{\b0 in}{\b0 stocks. }
\cf0 \fi90 6.2.1 Benefits of CRM at Handelsbanken
\cf0 \fi30 {\b0 According}{\b0 to}{\b0 Handelsbanken,}{\b0 the}{\b0 bottom}{\b0
line}{\b0 is}{\b0 higher}{\b0 profitability}{\b0 therefore}{\b0 the}{\b0 main
}
\fi30 {\b0 benefits}{\b0 they}{\b0 want}{\b0 to}{\b0 achieve,}{\b0 as}
{\b0 a}{\b0 bank}{\b0 through}{\b0 CRM}{\b0 initiatives}{\b0 is}{\b0
higher }
\fi30 {\b0 profitability.}{\b0 They}{\b0 want}{\b0 to}{\b0 achieve}{\b0 this}
{\b0 through}{\b0 higher}{\b0 customer}{\b0 retention}{\b0 and}{\b0 higher }
\fi30 {\b0 customer}{\b0 satisfaction.}{\b0 This}{\b0 is}{\b0 clear}{\b0 in}
{\b0 what}{\b0 we}{\b0 gathered}{\b0 in}{\b0 our}{\b0 theory.}{\b0 Swift}
{\b0 (2001) }
\fi30 {\b0 postulated}{\b0 that,}{\b0 one}{\b0 of}{\b0 the}{\b0 benefits}
{\b0 of}{\b0 CRM}{\b0 initiatives}{\b0 is}{\b0 increased}{\b0
customer }
\fi30 {\b0 profitability.}{\b0 Further}{\b0 more,}{\b0 Newell}{\b0 (2000)}
{\b0 also}{\b0 stated}{\b0 that}{\b0 customer}{\b0 loyalty}{\b0 and }
\fi30 {\b0 increased}{\b0 profitability}{\b0 is}{\b0 one}{\b0 of}{\b0
the}{\b0 benefits}{\b0 of}{\b0 CRM}{\b0 programs.}{\b0 Moreover,}{\b0
Wilson, }
\fi30 {\b0 Daniel}{\b0 and}{\b0 McDonald}{\b0 (2002)}{\b0 indicated}{\b0 that}
{\b0 one}{\b0 of}{\b0 the}{\b0 benefits}{\b0 of}{\b0 CRM}{\b0 initiatives}
{\b0 is }
\fi30 {\b0 higher}{\b0 customer}{\b0 profitability. }
\cf0 \fi30 {\b0 At}{\b0 Handelsbanken,}{\b0 one}{\b0 of}{\b0 the}{\b0 main}
{\b0 objectives}{\b0 of}{\b0 their}{\b0 CRM}{\b0 initiatives}{\b0 is}{\b0
to}{\b0 become }
\fi30 {\b0 the}{\b0 lowest}{\b0 operating}{\b0 cost}{\b0 company}{\b0
than}{\b0 all}{\b0 the}{\b0 other}{\b0 banks}{\b0 in}{\b0 Sweden}{\b0
and}{\b0 the }
\fi30 {\b0 Nordic}{\b0 region.}{\b0 Handelsbanken}{\b0 believes}{\b0 that,}{\b0
as}{\b0 long}{\b0 as}{\b0 their}{\b0 current}{\b0 customers}{\b0 are }
\fi30 {\b0 satisfied}{\b0 and}{\b0 loyal,}{\b0 there}{\b0 will}{\b0 be}
{\b0 no}{\b0 need}{\b0 to}{\b0 spend}{\b0 money}{\b0 on}{\b0
advertisement}{\b0 to }
\fi30 {\b0 acquire}{\b0 new}{\b0 customers}{\b0 therefore}{\b0 the}{\b0 money}
{\b0 on}{\b0 that}{\b0 will}{\b0 be}{\b0 saved.}{\b0 Again}{\b0 the}{\b0
bank }
\fi29 {\b0 believes}{\b0 that}{\b0 through}{\b0 personalization,}{\b0 the}{\b0
right}{\b0 communication,}{\b0 product}{\b0 and}{\b0 services }
\fi29 {\b0 are}{\b0 provided}{\b0 to}{\b0 the}{\b0 right}{\b0 customer}
{\b0 at}{\b0 the}{\b0 right}{\b0 time}{\b0 and}{\b0 at}{\b0 the}{\b0
right}{\b0 place. }
\fi30 {\b0 Handelsbanken}{\b0 believes}{\b0 that}{\b0 this}{\b0 also}{\b0
brings}{\b0 out}{\b0 higher}{\b0 efficiency.}{\b0 This}{\b0 also}{\b0 goes }
\fi30 {\b0 with}{\b0 the}{\b0 theory.}{\b0 According}{\b0 to}{\b0 Gray}
{\b0 and}{\b0 Byun}{\b0 (2001)}{\b0 cost}{\b0 effective}{\b0
marketing }
\fi30 {\b0 campaign}{\b0 is}{\b0 one}{\b0 of}{\b0 the}{\b0 main}{\b0
benefits}{\b0 of}{\b0 CRM}{\b0 initiatives.}{\b0 Swift}{\b0 (2001)}{\b0 also}
{\b0 supported }\par
}
43 \par
}
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\par
}
this by saying that, lower cost of recruiting new customers is one of the benefits
of
programs.
Thompson (2004) indicated that, competitive advantage is one of the main benefits
\par}{\phpg\posx1477\pvpg\posy1421\absw9279\absh2973 \sl-275 \f10 \fs21 \cf0 of CRM
programs with regards to organizational impact. Again he adds that, positive
\par}{\phpg\posx1477\pvpg\posy1421\absw9279\absh2973 \sl-275 \f10 \fs21 \cf0 impact
on the company's performance is another benefits of CRM initiatives when it
\par}{\phpg\posx1477\pvpg\posy1421\absw9279\absh2973 \sl-275 \f10 \fs21 \cf0 comes
to the impact CRM get on the organizations undertaking it. However, at
Handelsbanken, they believe that the major impact they are getting as part of the
benefits of their CRM initiatives is that, for the past 10 years, they have on top
of the
Customer Satisfaction Index (CSI). This shows that they have good rapport with
their
customers and one thing is also that, they have been expanding so much recently in
Nordic Region and other parts of the world like U.K. \par
}
\fs21 \cf0 6.3 F�reningsSparbanken
\fi97 6.3.1 Strategies and Objectives of CRM initiatives at F�reningsSparbanken
{\b0 According}{\b0 to}{\b0 Mr.}{\b0 Axel}{\b0 Hakansson,}{\b0
F�reningsSparbanken}{\b0 interacts}{\b0 with}{\b0 its}{\b0 customers }
{\b0 through}{\b0 several}{\b0 channels}{\b0 because}{\b0 they}{\b0 see}{\b0
communication}{\b0 as}{\b0 very}{\b0 crucial}{\b0 for}{\b0 them }
{\b0 to}{\b0 build}{\b0 customer}{\b0 loyalty.}{\b0 For}{\b0 them}{\b0
channel}{\b0 management}{\b0 is}{\b0 a}{\b0 very}{\b0 important.}{\b0 This}
{\b0 is }
{\b0 in}{\b0 line}{\b0 with}{\b0 theory.}{\b0 Xu}{\b0 (2002)}{\b0 indicates}
{\b0 that,}{\b0 improved}{\b0 and}{\b0 increased}{\b0 communication }
{\b0 between}{\b0 a}{\b0 company}{\b0 and}{\b0 its}{\b0 customers}{\b0
is}{\b0 one}{\b0 of}{\b0 the}{\b0 strategies}{\b0 of}{\b0 CRM}{\b0
initiatives. }
{\b0 Again}{\b0 Xu}{\b0 (2002)}{\b0 adds}{\b0 that}{\b0 improved}{\b0
customer}{\b0 interaction}{\b0 is}{\b0 also}{\b0 considered}{\b0 one}{\b0
of }
{\b0 the}{\b0 strategies}{\b0 of}{\b0 CRM}{\b0 initiatives. }
{\b0 With}{\b0 regards}{\b0 to}{\b0 customer}{\b0 identification,}{\b0
customer}{\b0 retention,}{\b0 and}{\b0 customer}{\b0 loyalty, }
{\b0 F�reningsSparbanken}{\b0 do}{\b0 not}{\b0 believe}{\b0 so}{\b0 much}
{\b0 in}{\b0 acquiring}{\b0 new}{\b0 customers}{\b0 even }
{\b0 though}{\b0 they}{\b0 go}{\b0 out}{\b0 to}{\b0 universities}{\b0 and}
{\b0 also}{\b0 company}{\b0 premises}{\b0 to}{\b0 meet}{\b0 and}{\b0 attract
}
{\b0 new}{\b0 customers.}{\b0 The}{\b0 bank}{\b0 rather}{\b0 believes}{\b0
that,}{\b0 maintaining}{\b0 the}{\b0 existing}{\b0 customers}{\b0 is }
{\b0 most}{\b0 important.}{\b0 This}{\b0 is}{\b0 also}{\b0 seen}{\b0 in}{\b0
the}{\b0 theory}{\b0 when}{\b0 Thompson}{\b0 (2004)}{\b0 postulates }
{\b0 that,}{\b0 acquiring}{\b0 new}{\b0 customers}{\b0 is}{\b0 one}{\b0
of}{\b0 the}{\b0 strategies}{\b0 of}{\b0 CRM}{\b0 initiatives.}{\b0
Further }
{\b0 more,}{\b0 Kim,}{\b0 Suh}{\b0 and}{\b0 Hwang}{\b0 (2003)}{\b0
also}{\b0 indicate}{\b0 that,}{\b0 acquiring}{\b0 new}{\b0 customers}{\b0
is }
{\b0 very}{\b0 important}{\b0 aspects}{\b0 of}{\b0 CRM}{\b0 strategies. }
{\b0 With}{\b0 regards}{\b0 to}{\b0 personalization}{\b0 as}{\b0 one}{\b0 of}
{\b0 the}{\b0 CRM}{\b0 strategies,}{\b0 F�reningsSparbanken }
{\b0 try}{\b0 to}{\b0 treat}{\b0 each}{\b0 and}{\b0 every}{\b0
customer}{\b0 according}{\b0 to}{\b0 his}{\b0 or}{\b0 her}{\b0
personal}{\b0 needs,}{\b0 the }
{\b0 person's}{\b0 unique}{\b0 financial}{\b0 situation}{\b0 and}{\b0
demands.}{\b0 What}{\b0 we}{\b0 found}{\b0 at}{\b0 our}{\b0 investigations }
{\b0 at}{\b0 the}{\b0 bank}{\b0 is}{\b0 the}{\b0 same}{\b0 as}{\b0 what}{\b0
we}{\b0 have}{\b0 in}{\b0 the}{\b0 theory.}{\b0 This}{\b0 can}{\b0 be}{\b0
seen}{\b0 in}{\b0 Peppers }
{\b0 (1999)}{\b0 that,}{\b0 customers}{\b0 should}{\b0 be}{\b0 treated}{\b0
uniquely. }
\fi120 6.3.1 Benefits of CRM at F�reningsSparbanken
\fi60 {\b0 When}{\b0 it}{\b0 comes}{\b0 to}{\b0 revenue}{\b0 and}{\b0
profitability}{\b0 enhancement}{\b0 as}{\b0 one}{\b0 of}{\b0 the}{\b0
benefits}{\b0 of }
\fi60 {\b0 CRM}{\b0 initiatives,}{\b0 F�reningsSparbanken}{\b0 believe}{\b0
that}{\b0 higher}{\b0 profitability}{\b0 and}{\b0 increased }
\fi60 {\b0 revenue}{\b0 is}{\b0 the}{\b0 main}{\b0 one}{\b0 that}{\b0 the}
{\b0 bank}{\b0 derives}{\b0 from}{\b0 its}{\b0 CRM}{\b0 initiatives.}{\b0
This}{\b0 is}{\b0 very }
\fi60 {\b0 consistent}{\b0 with}{\b0 what}{\b0 we}{\b0 have}{\b0 in}{\b0
the}{\b0 theory;}{\b0 Swift}{\b0 (2001)}{\b0 argues}{\b0 that,}{\b0
increased }
\fi60 {\b0 customer}{\b0 profitability}{\b0 is}{\b0 a}{\b0 major}{\b0
benefit}{\b0 of}{\b0 CRM.}{\b0 Wilson,}{\b0 Daniel}{\b0 and}{\b0
McDonald }
\fi60 {\b0 (2002)}{\b0 also}{\b0 supported}{\b0 this}{\b0 by}{\b0 saying}{\b0
that}{\b0 higher}{\b0 customer}{\b0 profitability}{\b0 is}{\b0 also}{\b0
part}{\b0 of }
\fi60 {\b0 the}{\b0 benefits}{\b0 of}{\b0 CRM}{\b0 initiatives. }\par
}
44 \par
}
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\par
}
With regards to cost savings and reduction as a benefit of CRM
initiatives,
F�reningsSparbanken as a bank believes that, due to improved
customer
communications, they have been able to reduce both cost and time and the bank
attributed this to their CRM strategies. This is in line with Gray and Byun (2001),
they
\par}{\phpg\posx1477\pvpg\posy1697\absw9244\absh2973 \sl-275 \f10 \fs21 \cf0 state
that cost effective marketing campaign is a major benefit of CRM initiatives.
Thompson (2004) postulates that, with regards to organizational impact as one
of
benefits of CRM initiatives, competitive advantage is one of them. Further more
\par}{\phpg\posx1477\pvpg\posy1697\absw9244\absh2973 \sl-275 \f10 \fs21 \cf0 he
goes on to say that, positive impact on the company's overall performance is also
\par}{\phpg\posx1477\pvpg\posy1697\absw9244\absh2973 \sl-275 \f10 \fs21 \cf0 a
benefit of CRM initiatives. This confirms the data we have gathered through our
investigations at F�reningsSparbanken where they believe the bank is now
the
\par}{\phpg\posx1477\pvpg\posy1697\absw9244\absh2973 \sl-275 \f10 \fs21 \cf0 number
one in Sweden due to their CRM strategies. \par
}
\cf0 6.4 CROSS CASE ANALYSIS
\fi60 {\b0 This}{\b0 section}{\b0 of}{\b0 chapter}{\b0 six}{\b0 is}{\b0
cross}{\b0 case}{\b0 analysis}{\b0 where}{\b0 the}{\b0 data}{\b0 we}{\b0
collected}{\b0 from }
\fi60 {\b0 all}{\b0 the}{\b0 three}{\b0 case}{\b0 companies}{\b0 are}{\b0
analyzed}{\b0 to}{\b0 see}{\b0 the}{\b0 differences}{\b0 and}{\b0 the}{\b0
similarities }
\fi60 {\b0 as}{\b0 we}{\b0 compare}{\b0 them}{\b0 all}{\b0 to}{\b0 the}{\b0
theory.}{\b0 This}{\b0 is}{\b0 done}{\b0 in}{\b0 accordance}{\b0 to}{\b0
our}{\b0 research }
\fi60 {\b0 questions. }
\fi60 6.4.1 Objectives and strategies of CRM initiatives
{\b0 According}{\b0 to}{\b0 the}{\b0 investigations}{\b0 we}{\b0
conducted}{\b0 in}{\b0 the}{\b0 three}{\b0 case}{\b0 companies}{\b0 in}
{\b0 this }
{\b0 study,}{\b0 we}{\b0 realized}{\b0 all}{\b0 the}{\b0 companies}{\b0 are}
{\b0 employing}{\b0 some}{\b0 sort}{\b0 of}{\b0 strategies}{\b0 in}{\b0
their }
{\b0 dealings}{\b0 with}{\b0 their}{\b0 customers}{\b0 and}{\b0 in}{\b0
their}{\b0 CRM}{\b0 programs.}{\b0 The}{\b0 CRM}{\b0 strategies}{\b0 used }
{\b0 by}{\b0 all}{\b0 the}{\b0 three}{\b0 case}{\b0 companies}{\b0 could}{\b0
be}{\b0 seen}{\b0 in}{\b0 the}{\b0 following}{\b0 areas: }
{\f0\fs28 \bullet }{\b0 \f40 } Customer Identification
{\b0 Customer}{\b0 identification}{\b0 is}{\b0 how}{\b0 these}{\b0 companies}
{\b0 acquire}{\b0 new}{\b0 customers.}{\b0 During}{\b0 the }
{\b0 data}{\b0 collection,}{\b0 we}{\b0 realized}{\b0 that}{\b0 all}{\b0
the}{\b0 three}{\b0 case}{\b0 companies}{\b0 believe}{\b0 that}{\b0 is}
{\b0 a }
{\b0 strategy}{\b0 that}{\b0 they}{\b0 use}{\b0 to}{\b0 attract}{\b0 new}{\b0
customers.}{\b0 They}{\b0 all}{\b0 do}{\b0 this}{\b0 by}{\b0 going}{\b0 out}
{\b0 to}{\b0 meet }
{\b0 staff}{\b0 of}{\b0 organizations}{\b0 trying}{\b0 to}{\b0 convince}{\b0
them}{\b0 to}{\b0 become}{\b0 their}{\b0 customers.}{\b0 They}{\b0 all}{\b0
go }
{\b0 to}{\b0 the}{\b0 university}{\b0 campuses}{\b0 in}{\b0 order}{\b0
to}{\b0 convince}{\b0 the}{\b0 youth}{\b0 especially}{\b0 university }
{\b0 students}{\b0 to}{\b0 become}{\b0 customers}{\b0 of}{\b0 the}{\b0
banks.}{\b0 Again}{\b0 they}{\b0 try}{\b0 to}{\b0 also}{\b0 get}{\b0
new }
{\b0 customers}{\b0 through}{\b0 their}{\b0 partners}{\b0 and}{\b0
affiliates.}{\b0 This}{\b0 affiliate}{\b0 thing}{\b0 is}{\b0 done}{\b0 so}
{\b0 much}{\b0 at }
{\b0 Nordea}{\b0 bank.}{\b0 At}{\b0 Handelsbanken}{\b0 one}{\b0 of}{\b0
the}{\b0 things}{\b0 that}{\b0 they}{\b0 do}{\b0 to}{\b0 attract}{\b0
new }
{\b0 customers}{\b0 is}{\b0 to}{\b0 organize}{\b0 meetings}{\b0 for}{\b0
people}{\b0 who}{\b0 are}{\b0 interested}{\b0 in}{\b0 trading}{\b0 stocks. }
{\b0 Nordea}{\b0 also}{\b0 does}{\b0 this}{\b0 by}{\b0 making}{\b0
sure}{\b0 that}{\b0 all}{\b0 the}{\b0 people}{\b0 who}{\b0 come}{\b0
to}{\b0 them}{\b0 for }
{\b0 housing}{\b0 needs}{\b0 eventually}{\b0 become}{\b0 customers}{\b0 of}
{\b0 the}{\b0 bank.}{\b0 This}{\b0 confirms}{\b0 Thompson }
{\b0 (2004),}{\b0 which}{\b0 is}{\b0 also}{\b0 supported}{\b0 by}{\b0 Deck}
{\b0 (2004).}{\b0 In}{\b0 the}{\b0 same}{\b0 way}{\b0 of}{\b0 what}{\b0 we}
{\b0 have}{\b0 in }
{\b0 the}{\b0 theory,}{\b0 all}{\b0 the}{\b0 companies}{\b0 believe}{\b0
that}{\b0 acquiring}{\b0 a}{\b0 new}{\b0 customer}{\b0 is}{\b0 one}{\b0 of}
{\b0 their }
{\b0 major}{\b0 objectives}{\b0 and}{\b0 strategies}{\b0 and}{\b0
as}{\b0 such}{\b0 it}{\b0 is}{\b0 very}{\b0 important.}{\b0
However, }
{\b0 F�reningsSparbanken}{\b0 believe}{\b0 on}{\b0 the}{\b0 contrary,}{\b0
for}{\b0 them}{\b0 even}{\b0 though}{\b0 they}{\b0 also }
{\b0 acquire}{\b0 new}{\b0 customers,}{\b0 it}{\b0 is}{\b0 more}{\b0
important}{\b0 to}{\b0 retain}{\b0 the}{\b0 existing}{\b0 customers}{\b0
than}{\b0 to }
{\b0 acquire}{\b0 a}{\b0 new}{\b0 one. }\par
}
45 \par
}
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\par
}
\bullet }\f40 \fs21 \cf0 {\b \f10 Customer}{\b \f10 Differentiation }
All}{\f10 the}{\f10 companies}{\f10 we}{\f10 investigated}{\f10 are}{\f10
doing}{\f10 some}{\f10 kind}{\f10 of}{\f10 differentiation}{\f10 with}
{\f10 the }
exception}{\f10 of}{\f10 Handelsbanken}{\f10 that}{\f10 do}{\f10 not}{\f10
believe}{\f10 in}{\f10 customer}{\f10 differentiation}{\f10 but}{\f10 rather }
they}{\f10 think}{\f10 that}{\f10 it}{\f10 is}{\f10 good}{\f10 to}{\f10
treat}{\f10 each}{\f10 and}{\f10 every}{\f10 single}{\f10 individual}{\f10
according}{\f10 to}{\f10 that }
person's}{\f10 needs}{\f10 and}{\f10 not}{\f10 to}{\f10 group}{\f10
customers}{\f10 into}{\f10 categories}{\f10 on}{\f10 any}{\f10 bases.}{\f10
In}{\f10 other }
words,}{\f10 Handelsbanken}{\f10 believes}{\f10 it}{\f10 is}{\f10
better}{\f10 to}{\f10 do}{\f10 personalization}{\f10 rather}{\f10
than }
differentiation.}{\f10 In}{\f10 Nordea,}{\f10 we}{\f10 found}{\f10 out}
{\f10 that}{\f10 customers}{\f10 are}{\f10 differentiated}{\f10 base}
{\f10 on }
profitability.}{\f10 Nordea}{\f10 treat}{\f10 high}{\f10 profit}{\f10
customers}{\f10 different}{\f10 from}{\f10 the}{\f10 low}{\f10 and}{\f10 the}
{\f10 middle }
group.}{\f10 The}{\f10 bank}{\f10 has}{\f10 grouped}{\f10 its}{\f10
customer}{\f10 into}{\f10 three}{\f10 categories,}{\f10 namely,}{\f10
gold}{\f10 for }
upper}{\f10 class,}{\f10 silver}{\f10 for}{\f10 middle}{\f10 class}{\f10
and}{\f10 ordinary}{\f10 for}{\f10 normal}{\f10 customers.}{\f10 This}
{\f10 is}{\f10 in }
accordance}{\f10 with}{\f10 Chye}{\f10 and}{\f10 Gerry}{\f10 (2002)}{\f10
who}{\f10 argue}{\f10 that}{\f10 customers}{\f10 should}{\f10 be }
differentiated}{\f10 with}{\f10 respect}{\f10 to}{\f10 profitability.}{\f10
At}{\f10 F�reningsSparbanken,}{\f10 we}{\f10 found}{\f10 out}{\f10 that, }
they}{\f10 also}{\f10 do}{\f10 differentiation}{\f10 by}{\f10 grouping}
{\f10 customers}{\f10 into}{\f10 the}{\f10 youth}{\f10 and}{\f10
students, }
working}{\f10 class}{\f10 and}{\f10 pensioners.}{\f10 This}{\f10 is}{\f10
also}{\f10 in}{\f10 line}{\f10 with}{\f10 Kim,}{\f10 Suh}{\f10 and}
{\f10 Hwang}{\f10 who }
argue}{\f10 that}{\f10 customers}{\f10 should}{\f10 be}{\f10 differentiated}
{\f10 based}{\f10 on}{\f10 the}{\f10 service}{\f10 they}{\f10 require}{\f10
and }
the}{\f10 services}{\f10 the}{\f10 company}{\f10 provide}{\f10 for}{\f10
these}{\f10 customers. }
{\f0\fs28 \bullet }{\b \f10 Customer}{\b \f10 Interaction }
With}{\f10 regards}{\f10 to}{\f10 interaction}{\f10 as}{\f10 a}{\f10
strategy}{\f10 of}{\f10 CRM}{\f10 interaction,}{\f10 Peppers}{\f10 (1999)}
{\f10 states }
that}{\f10 organizations}{\f10 should}{\f10 continuously}{\f10 learn}{\f10
about}{\f10 its}{\f10 customer.}{\f10 Xu}{\f10 (2002)}{\f10 lamented }
that}{\f10 improve}{\f10 and}{\f10 increase}{\f10 communication}{\f10
between}{\f10 a}{\f10 company}{\f10 and}{\f10 its}{\f10 customers. }
Kim,}{\f10 Suh}{\f10 and}{\f10 Hwang}{\f10 (2003)}{\f10 postulate}{\f10
that}{\f10 responding}{\f10 appropriately}{\f10 to}{\f10 customer }
request.}{\f10 We}{\f10 also}{\f10 found}{\f10 out}{\f10 in}{\f10 our}{\f10
investigations}{\f10 that}{\f10 all}{\f10 the}{\f10 companies}{\f10 believe}
{\f10 that }
customer}{\f10 interaction}{\f10 is}{\f10 very}{\f10 crucial}{\f10 to}
{\f10 the}{\f10 success}{\f10 of}{\f10 their}{\f10 CRM}{\f10
initiatives.}{\f10 We }
realized}{\f10 that}{\f10 all}{\f10 the}{\f10 companies}{\f10 use}{\f10
so}{\f10 many}{\f10 communication}{\f10 channels,}{\f10 such}{\f10 as }
Internet,}{\f10 telephone,}{\f10 call}{\f10 center}{\f10 to}{\f10
interact}{\f10 with}{\f10 their}{\f10 customers.}{\f10 However,}{\f10
they}{\f10 all }
believe}{\f10 that}{\f10 face-to-face}{\f10 interaction}{\f10 is}{\f10 very}
{\f10 important}{\f10 and}{\f10 it}{\f10 helps}{\f10 them}{\f10 to}{\f10 be}
{\f10 able}{\f10 to }
learn}{\f10 and}{\f10 understand}{\f10 its}{\f10 customer's}{\f10 situation}
{\f10 better.}{\f10 This}{\f10 we}{\f10 believe}{\f10 is}{\f10 in}{\f10
line}{\f10 with}{\f10 the }
theory. }
{\f10 Peppers}{\f10 (1999)}{\f10 indicate}{\f10 that,}{\f10 treating}{\f10
each}{\f10 customer}{\f10 uniquely.}{\f10 Furthermore,}{\f10 Dyche }
{\f10 (2001)}{\f10 adds}{\f10 that,}{\f10 customers}{\f10 should}{\f10
receive}{\f10 personalized}{\f10 products}{\f10 offers.}{\f10 This }
{\f10 agrees}{\f10 with}{\f10 what}{\f10 we}{\f10 gathered}{\f10 during}{\f10
our}{\f10 investigations}{\f10 in}{\f10 the}{\f10 case}{\f10 companies.}{\f10
For }
{\f10 example,}{\f10 all}{\f10 the}{\f10 companies}{\f10 were}{\f10 of}
{\f10 the}{\f10 view}{\f10 that}{\f10 customers}{\f10 should}{\f10 be}
{\f10 treated }
{\f10 uniquely}{\f10 and}{\f10 differently}{\f10 according}{\f10 to}{\f10
their}{\f10 unique}{\f10 needs}{\f10 and}{\f10 demands.}{\f10 For}{\f10
instance, }
{\f10 Handelsbanken}{\f10 believe}{\f10 that}{\f10 personalization}{\f10
is}{\f10 better}{\f10 than}{\f10 differentiation}{\f10 because }
{\f10 treating}{\f10 each}{\f10 customer}{\f10 uniquely}{\f10 and}{\f10 base}
{\f10 on}{\f10 that}{\f10 particular}{\f10 person's}{\f10 needs}{\f10 and}
{\f10 not }
{\f10 just}{\f10 adding}{\f10 him}{\f10 or}{\f10 her}{\f10 to}{\f10 a}{\f10
group}{\f10 and}{\f10 treating}{\f10 that}{\f10 group}{\f10 members}{\f10
the}{\f10 same.}{\f10 In}{\f10 view }
{\f10 of}{\f10 that}{\f10 they}{\f10 would}{\f10 rather}{\f10 do}{\f10
personalization}{\f10 in}{\f10 full}{\f10 force}{\f10 without}{\f10
wasting}{\f10 time}{\f10 and }
{\f10 money}{\f10 on}{\f10 customer}{\f10 differentiation. }
{\b \f10 6.4.2}{\b \f10 Benefits}{\b \f10 of}{\b \f10 CRM}{\b \f10
initiatives }
{\f10 We}{\f10 have}{\f10 learnt}{\f10 from}{\f10 this}{\f10 study}{\f10
that,}{\f10 all}{\f10 the}{\f10 companies}{\f10 we}{\f10 conducted}{\f10
investigations }
into}{\f10 intend}{\f10 and}{\f10 also}{\f10 get}{\f10 so}{\f10 many}{\f10
benefits}{\f10 from}{\f10 their}{\f10 CRM}{\f10 initiatives.}{\f10 This}{\f10
can}{\f10 also}{\f10 be }
seen}{\f10 in}{\f10 the}{\f10 theory}{\f10 we}{\f10 have}{\f10 in}{\f10 the}
{\f10 second}{\f10 chapter}{\f10 of}{\f10 the}{\f10 work.}{\f10 These}{\f10
benefits}{\f10 and }
intended}{\f10 benefits}{\f10 are}{\f10 analyzed}{\f10 in}{\f10 a}{\f10
cross}{\f10 case}{\f10 analyses}{\f10 in}{\f10 the}{\f10 areas}{\f10 below}
{\f10 with }
respect}{\f10 to}{\f10 the}{\f10 research}{\f10 questions: }\par
}
46 \par
}
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\par
}
\bullet }\f40 \fs21 \cf0 {\b \f10 Revenue}{\b \f10 and}{\b \f10
profitability}{\b \f10 enhancement }
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{\f10 main}{\f10 benefits}{\f10 of}{\f10 CRM}{\f10 initiatives}{\f10 is}{\f10
creation}{\f10 of }
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profitability.}{\f10 This}{\f10 statement}{\f10 confirms}{\f10 what }
we}{\f10 learnt}{\f10 at}{\f10 F�reningsSparbanken.}{\f10 They}{\f10 believe}
{\f10 that,}{\f10 one}{\f10 of}{\f10 the}{\f10 major}{\f10 benefits}{\f10 of
}
their}{\f10 CRM}{\f10 initiatives}{\f10 is}{\f10 Customer}{\f10 loyalty}{\f10
where}{\f10 they}{\f10 made}{\f10 us}{\f10 aware}{\f10 that}{\f10 they}{\f10
have}{\f10 so }
many}{\f10 loyal}{\f10 customers}{\f10 that}{\f10 there}{\f10 is}{\f10 no}
{\f10 need}{\f10 for}{\f10 them}{\f10 to}{\f10 spend}{\f10 time}{\f10 and}
{\f10 money}{\f10 to}{\f10 do }
any}{\f10 vigorous}{\f10 campaign}{\f10 for}{\f10 new}{\f10 customers}{\f10
even}{\f10 though}{\f10 if}{\f10 they}{\f10 get}{\f10 some}{\f10 they}{\f10
would }
like}{\f10 but}{\f10 there}{\f10 is}{\f10 no}{\f10 frantic}{\f10 effort}{\f10
to}{\f10 hunt}{\f10 for}{\f10 customers.}{\f10 All}{\f10 the}{\f10 other}
{\f10 two}{\f10 banks}{\f10 also }
think}{\f10 that}{\f10 profitability}{\f10 is}{\f10 one}{\f10 of}{\f10
the}{\f10 main}{\f10 objectives}{\f10 and}{\f10 benefits}{\f10 of}{\f10
their}{\f10 CRM }
initiatives.}{\f10 At}{\f10 Handelsbanken,}{\f10 they}{\f10 believe}{\f10
that}{\f10 higher}{\f10 profitability}{\f10 is}{\f10 the}{\f10 bottom}{\f10
line}{\f10 of }
their}{\f10 CRM}{\f10 initiatives.}{\f10 At}{\f10 Nordea,}{\f10 they}{\f10
are}{\f10 also}{\f10 of}{\f10 the}{\f10 view}{\f10 that}{\f10 higher}{\f10
and}{\f10 increase }
profitability}{\f10 is}{\f10 a}{\f10 major}{\f10 objective}{\f10 and}
{\f10 benefit}{\f10 of}{\f10 their}{\f10 CRM}{\f10 initiatives.}{\f10
In}{\f10 this}{\f10 case, }
Nordea}{\f10 has}{\f10 even}{\f10 differentiated}{\f10 its}{\f10 customers}
{\f10 based}{\f10 on}{\f10 profitability. }
{\f0\fs28 \bullet }{\b \f10 Cost}{\b \f10 savings}{\b \f10 and}{\b \f10
reductions }
Gray}{\f10 and}{\f10 Byun}{\f10 (2001)}{\f10 state}{\f10 that}{\f10
improving}{\f10 service}{\f10 quality}{\f10 without}{\f10 increasing}{\f10
cost}{\f10 is }
one}{\f10 of}{\f10 the}{\f10 benefits}{\f10 of}{\f10 CRM}{\f10
initiatives.}{\f10 Our}{\f10 findings}{\f10 at}{\f10 Nordea}{\f10 are}
{\f10 in}{\f10 line}{\f10 with}{\f10 this }
statement.}{\f10 At}{\f10 Nordea,}{\f10 they}{\f10 want}{\f10 to}{\f10
improve}{\f10 service}{\f10 quality}{\f10 without}{\f10 adding}{\f10 more}
{\f10 cost, }
it's}{\f10 the}{\f10 same}{\f10 when}{\f10 it}{\f10 comes}{\f10 to}{\f10
what}{\f10 we}{\f10 found}{\f10 out}{\f10 at}{\f10 Handelsbanken}{\f10 and}
{\f10 its}{\f10 also}{\f10 the }
same}{\f10 at}{\f10 F�reningsSparbanken.}{\f10 We}{\f10 can}{\f10 confidently}
{\f10 say}{\f10 that,}{\f10 all}{\f10 the}{\f10 banks}{\f10 are}{\f10
striving }
to}{\f10 become}{\f10 the}{\f10 number}{\f10 one}{\f10 cost}{\f10 savings}
{\f10 and}{\f10 effective}{\f10 company.}{\f10 Swift}{\f10 (2001)}{\f10
argues }
that,}{\f10 lower}{\f10 cost}{\f10 of}{\f10 recruiting}{\f10 new}{\f10
customers}{\f10 is}{\f10 part}{\f10 of}{\f10 the}{\f10 benefits}{\f10 and}
{\f10 objectives}{\f10 of }
CRM}{\f10 programs.}{\f10 This}{\f10 confirms}{\f10 what}{\f10 we}{\f10
gathered}{\f10 at}{\f10 F�reningsSparbanken}{\f10 where }
they}{\f10 think}{\f10 that}{\f10 due}{\f10 to}{\f10 their}{\f10 CRM}{\f10
strategies,}{\f10 they}{\f10 have}{\f10 so}{\f10 many}{\f10 customers}{\f10
that}{\f10 there }
is}{\f10 no}{\f10 need}{\f10 to}{\f10 spend}{\f10 so}{\f10 much}{\f10 money}
{\f10 on}{\f10 recruiting}{\f10 new}{\f10 customers. }
\fi420 {\f0\fs28 \bullet }{\b \f10 Organizational}{\b \f10 Impact }
\fi120 {\f10 Thompson}{\f10 (2004)}{\f10 states}{\f10 that}{\f10
competitive}{\f10 advantage}{\f10 is}{\f10 another}{\f10 benefit}{\f10
of}{\f10 CRM }
{\f10 initiatives.}{\f10 However,}{\f10 none}{\f10 of}{\f10 the}{\f10 three}
{\f10 companies,}{\f10 which}{\f10 we}{\f10 conducted}{\f10 interview}{\f10
on }
{\f10 mentioned}{\f10 competitive}{\f10 advantage}{\f10 as}{\f10 a}{\f10
benefit}{\f10 or}{\f10 objective}{\f10 of}{\f10 their}{\f10 CRM}{\f10
programs. }
{\f10 Thompson}{\f10 (2004)}{\f10 further}{\f10 argues}{\f10 that}{\f10
positive}{\f10 impact}{\f10 on}{\f10 the}{\f10 company's}{\f10 performance }
{\f10 is}{\f10 also}{\f10 one}{\f10 of}{\f10 the}{\f10 benefits}{\f10 of}
{\f10 CRM}{\f10 initiatives.}{\f10 This}{\f10 we}{\f10 believe}{\f10 is}{\f10
in}{\f10 line}{\f10 with}{\f10 what}{\f10 we }
{\f10 gathered}{\f10 from}{\f10 the}{\f10 investigations}{\f10 we}{\f10
conducted.}{\f10 This}{\f10 is}{\f10 because;}{\f10 all}{\f10 the}{\f10
companies }
{\f10 are}{\f10 aiming}{\f10 to}{\f10 be}{\f10 on}{\f10 top}{\f10 of}{\f10
the}{\f10 Customer}{\f10 Satisfaction}{\f10 Index}{\f10 (CSI)}{\f10 that}{\f10
is}{\f10 organized }
{\f10 every}{\f10 year}{\f10 by}{\f10 an}{\f10 independent}{\f10 institution}
{\f10 to}{\f10 find}{\f10 out}{\f10 which}{\f10 company's}{\f10 customers}
{\f10 are }
{\f10 the}{\f10 most}{\f10 satisfied. }\par
}
47 \par
}
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1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
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\par
}
\fs21 \cf0 7 Conclusions, Implications and Recommendations
\cf0 {\b0\i This}{\b0\i chapter}{\b0\i serves}{\b0\i as}{\b0\i a}{\b0\i
summary}{\b0\i of}{\b0\i the}{\b0\i results}{\b0\i that}{\b0\i came}{\b0\i
out}{\b0\i from}{\b0\i the}{\b0\i analysis}{\b0\i in }
{\b0\i reference}{\b0\i to}{\b0\i the}{\b0\i overall}{\b0\i research}{\b0\i
purpose}{\b0\i as}{\b0\i a}{\b0\i base.}{\b0\i The}{\b0\i conclusion}{\b0\i
aims}{\b0\i to}{\b0\i examine }
{\b0\i if}{\b0\i the}{\b0\i theory}{\b0\i and}{\b0\i the}{\b0\i frame}
{\b0\i of}{\b0\i reference}{\b0\i in}{\b0\i chapter}{\b0\i three}{\b0\i
are}{\b0\i consistent}{\b0\i with}{\b0\i what }
{\b0\i were}{\b0\i gathered}{\b0\i on}{\b0\i the}{\b0\i ground}{\b0\i
that}{\b0\i is}{\b0\i the}{\b0\i data}{\b0\i collected}{\b0\i as}{\b0\i
empirical}{\b0\i data.}{\b0\i This }
{\b0\i chapter}{\b0\i will}{\b0\i attempt}{\b0\i to}{\b0\i provide}{\b0\i
implications}{\b0\i for}{\b0\i practitioners,}{\b0\i theory}{\b0\i and}
{\b0\i future }
{\b0\i research. }
\cf0 \fi67 7.1 Conclusions
\cf0 {\b0 To}{\b0 understand}{\b0 the}{\b0 objectives}{\b0 and}{\b0
strategies}{\b0 of}{\b0 CRM}{\b0 initiatives}{\b0 and}{\b0 the}{\b0 benefits}
{\b0 is}{\b0 not }
{\b0 a}{\b0 simple}{\b0 thing.}{\b0 This}{\b0 is}{\b0 because}{\b0 it}{\b0
involves}{\b0 so}{\b0 many}{\b0 issues}{\b0 and}{\b0 factors}{\b0 as}{\b0
you}{\b0 can}{\b0 see }
{\b0 from}{\b0 the}{\b0 study}{\b0 and}{\b0 especially}{\b0 it}{\b0 must}{\b0
also}{\b0 include}{\b0 the}{\b0 customers'}{\b0 point}{\b0 of}{\b0 view}{\b0
and }
{\b0 not}{\b0 just}{\b0 the}{\b0 company's}{\b0 perspective.}{\b0 For}
{\b0 example,}{\b0 for}{\b0 a}{\b0 customer}{\b0 to}{\b0 be}{\b0
loyal}{\b0 and }
{\b0 profitable,}{\b0 it}{\b0 is}{\b0 the}{\b0 company}{\b0 that}{\b0 must}
{\b0 be}{\b0 committed}{\b0 to}{\b0 the}{\b0 customer}{\b0 but}{\b0 not}{\b0
the}{\b0 other }
{\b0 way}{\b0 round}{\b0 because}{\b0 of}{\b0 competition.}{\b0 In}{\b0 our}
{\b0 investigations}{\b0 we}{\b0 found}{\b0 out}{\b0 that}{\b0 almost}{\b0
all }
{\b0 the}{\b0 banks}{\b0 are}{\b0 doing}{\b0 almost}{\b0 the}{\b0 same}{\b0
things,}{\b0 in}{\b0 one}{\b0 occasion,}{\b0 the}{\b0 manager}{\b0 said}{\b0
that }
{\b0 all}{\b0 banks}{\b0 are}{\b0 the}{\b0 same}{\b0 but}{\b0 it}{\b0 is}
{\b0 the}{\b0 relationship}{\b0 between}{\b0 a}{\b0 bank}{\b0 staff}{\b0
and}{\b0 or}{\b0 a}{\b0 bank }
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bank}{\b0 from}{\b0 another.}{\b0 We}{\b0 believe}{\b0 that}{\b0 it}{\b0 is}
{\b0 really }
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{\b0 and }
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to}{\b0 a }
{\b0 successful}{\b0 and}{\b0 beneficial}{\b0 CRM}{\b0 program. }
{\b0 We}{\b0 can}{\b0 therefore}{\b0 say}{\b0 that,}{\b0 our}{\b0
investigations}{\b0 reveal}{\b0 that}{\b0 most}{\b0 of}{\b0 the}{\b0 theory}
{\b0 that}{\b0 we }
{\b0 have}{\b0 at}{\b0 the}{\b0 literature}{\b0 review}{\b0 agree}{\b0 with}
{\b0 what}{\b0 we}{\b0 gathered}{\b0 from}{\b0 the}{\b0 practitioners. }
\cf0 {\b0 In}{\b0 this}{\b0 study,}{\b0 the}{\b0 main}{\b0 purpose}{\b0 has}
{\b0 been}{\b0 to}{\b0 bring}{\b0 better}{\b0 understanding}{\b0 and}{\b0
insight}{\b0 of }
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benefits}{\b0 of}{\b0 CRM}{\b0 initiatives}{\b0 of}{\b0 service }
{\b0 companies,}{\b0 as}{\b0 you}{\b0 are}{\b0 already}{\b0 familiar}{\b0
with.}{\b0 In}{\b0 order}{\b0 to}{\b0 achieve}{\b0 the}{\b0 aim}{\b0
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{\b0 purpose}{\b0 of}{\b0 this}{\b0 study,}{\b0 two}{\b0 questions}{\b0 were}
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\cf0 {\b0 How}{\b0 can}{\b0 the}{\b0 objectives}{\b0 and}{\b0 strategies}{\b0
of}{\b0 CRM}{\b0 initiatives}{\b0 by}{\b0 organisations}{\b0 be }
{\b0 described? }
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in }
{\b0 their}{\b0 dealings}{\b0 with}{\b0 their}{\b0 customers}{\b0 and}{\b0
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{\b0 could}{\b0 be}{\b0 seen}{\b0 in}{\b0 the}{\b0 following}{\b0
discussions: }
\cf0 \fi67 {\b0 First}{\b0 of}{\b0 all,}{\b0 customer}{\b0 identification}{\b0
is}{\b0 how}{\b0 these}{\b0 companies}{\b0 acquire}{\b0 new}{\b0 customers. }
{\b0 During}{\b0 the}{\b0 data}{\b0 collection,}{\b0 we}{\b0 realized}{\b0
that}{\b0 all}{\b0 the}{\b0 three}{\b0 service}{\b0 companies}{\b0 believe, }
{\b0 that}{\b0 is}{\b0 a}{\b0 strategy}{\b0 that}{\b0 they}{\b0 use}{\b0 to}
{\b0 attract}{\b0 new}{\b0 customers.}{\b0 They}{\b0 all}{\b0 do}{\b0 this}
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to}{\b0 convince}{\b0 them}{\b0 to}{\b0 become}{\b0 their}{\b0
customers. }
{\b0 They}{\b0 also}{\b0 go}{\b0 to}{\b0 the}{\b0 university}{\b0 campuses}
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especially }
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these}{\b0 service}{\b0 companies.}{\b0 Again}{\b0 they}{\b0 try }
{\b0 to}{\b0 also}{\b0 get}{\b0 new}{\b0 customers}{\b0 through}{\b0 their}
{\b0 partners}{\b0 and}{\b0 affiliates.}{\b0 This}{\b0 affiliate}{\b0 thing}
{\b0 is }
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{\b0 At}{\b0 another}{\b0 bank,}{\b0 one}{\b0 of}{\b0 the}{\b0 things}{\b0
that}{\b0 they}{\b0 do}{\b0 to }\par
}
48 \par
}
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\par
}
attract new customers is to organize meetings for people who are
interested in
trading stocks. One of the service companies also does this by making sure that all

people who come to them for housing needs eventually become customers of the
\par}{\phpg\posx1417\pvpg\posy1421\absw9366\absh11914 \sl-275 \f10 \fs21 \cf0 bank.
This confirms Thompson (2004), which is also supported by Deck (2004). In
same way of what we have in the theory, all the companies believe that acquiring
\par}{\phpg\posx1417\pvpg\posy1421\absw9366\absh11914 \sl-275 \f10 \fs21 \cf0 a new
customer is one of their major objectives and strategies and as such it is very
important. However, one company believe on the contrary, for them even though they
\par}{\phpg\posx1417\pvpg\posy1421\absw9366\absh11914 \sl-275 \f10 \fs21 \cf0 also
acquire new customers, it is more important to retain the existing customers than
acquire a new one.
\cf0 \fi127 Secondary, all the companies we investigated are doing some kind of
differentiation
with the exception of one that do not believe in customer differentiation but
rather
that company thinks that it is good to treat each and every single
individual
according to that person's needs and not to group customers into categories on any
bases. In other words, company believes it is better to do personalization rather
than
differentiation. In another company that, we found out that
customers are
differentiated base on profitability. Our findings also indicate that some
of the
companies treat high profit customers different from the low and the middle group.
One bank has grouped its customer into three categories, namely, gold
for upper
class, silver for middle class and ordinary for normal customers. This
is in
accordance with Chye and Gerry (2002) who argue that customers should be

differentiated with respect to profitability. At one of the companies, we found out
that,
they also do differentiation by grouping customers into the youth and
students,
working class and pensioners. This is also in line with Kim, Suh and
Hwang who
argue that customers should be differentiated based on the service they require and

the services the company provide for these customers.
\cf0 \fi60 Moreover, with regards to interaction as a strategy of CRM
initiatives, Peppers
(1999) states that organizations should continuously learn about its
customer. Xu
(2002) lamented that improve and increase communication between a company and
its customers. Kim, Suh and Hwang (2003) postulate that responding appropriately
to customer request. We also found out in our investigations that all the companies

believe that customer interaction is very crucial to the success of
their CRM
initiatives. We realized that all the companies use so many communication channels,

such as Internet, telephone, call center to interact with their
customers. However,
they all believe that face-to-face interaction is very important and it helps them
to be
able to learn and understand its customer's situation better. This we believe is in
line
with the theory.
Peppers (1999) indicate that, treating each customer uniquely. Furthermore, Dyche
(2001) adds that, customers should receive personalized products offers.
This
agrees with what we gathered during our investigations in the case companies. For
example, all the companies were of the view that customers should be
treated
uniquely and differently according to their unique needs and demands. For instance,

one of the companies believes that personalization is better than
differentiation
because treating each customer uniquely and base on that particular person's needs
and not just adding him or her to a group and treating that group members the same.

In view of that they would rather do personalization in full force without wasting
time
and money on customer differentiation. \par
}
49 \par
}
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\par
}
\cf0 How can the expected benefits of CRM initiatives by
organisations be
described?
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theory}{\b0 we}{\b0 have}{\b0 in}{\b0 the}{\b0 second}{\b0 chapter}{\b0
of}{\b0 the}{\b0 work. }
{\b0 These}{\b0 benefits}{\b0 and}{\b0 intended}{\b0 benefits}{\b0 were}{\b0
seen}{\b0 in}{\b0 the}{\b0 discussions}{\b0 below: }\par
}
According to Newell (2000), one of the main benefits of CRM initiatives is creation
of
customer loyalty and increasing customer profitability. This statement confirms
what
learnt at one of the companies. They believe that, one of the major benefits of
CRM initiatives is Customer loyalty where they made us aware that they have so
\par}{\phpg\posx1417\pvpg\posy3869\absw9383\absh10189 \sl-275 \f10 \fs21 \cf0 many
loyal customers that there is no need for them to spend time and money to do
\par}{\phpg\posx1417\pvpg\posy3869\absw9383\absh10189 \sl-275 \f10 \fs21 \cf0 any
vigorous campaign for new customers even though if they get some they would
\par}{\phpg\posx1417\pvpg\posy3869\absw9383\absh10189 \sl-275 \f10 \fs21 \cf0 like
but there is no frantic effort to hunt for customers. All the other two companies
\par}{\phpg\posx1417\pvpg\posy3869\absw9383\absh10189 \sl-275 \f10 \fs21 \cf0 also
think that profitability is one of the main objectives and benefits of their CRM
initiatives. Our investigations reveal that at one company, they believe
that higher
profitability is the bottom line of their CRM initiatives. Again at another
company, they
also of the view that higher and increase profitability is a major objective and
benefit of their CRM initiatives. In this study, we realized that, one of the
companies
\par}{\phpg\posx1417\pvpg\posy3869\absw9383\absh10189 \sl-275 \f10 \fs21 \cf0 has
even differentiated its customers based on profitability.
Moreover{\b ,} Gray and Byun (2001) state that improving service quality
without
increasing cost is one of the benefits of CRM initiatives. Our findings are in line
with
statement. At one of the companies, they want to improve service quality without
adding more cost; it's the same when it comes to what we found out in all the
service
companies we conducted the studies with. We can confidently say that,
all the
service companies are striving to become the number one cost savings and effective
company. Swift (2001) argues that, lower cost of recruiting new customers is part
of
benefits and objectives of CRM programs. This confirms what we gathered at one
the banks where they think that due to their CRM strategies, they have so many
customers that there is no need to spend so much money on recruiting
new
customers.
Thompson (2004) states that competitive advantage is another benefit of
CRM
initiatives. However, none of the three companies, which we conducted interview on
mentioned competitive advantage as a benefit or objective of their CRM programs.
Thompson (2004) further argues that positive impact on the company's performance
\par}{\phpg\posx1417\pvpg\posy3869\absw9383\absh10189 \sl-275 \f10 \fs21 \cf0 is
also one of the benefits of CRM initiatives. This we believe is in line with what
we
gathered from the investigations we conducted. This is because; all the companies
aiming to be on top of the Customer Satisfaction Index (CSI) that is organized
\par}{\phpg\posx1417\pvpg\posy3869\absw9383\absh10189 \sl-275 \f10 \fs21 \cf0 every
year by an independent institution to find out which company's customers are
most satisfied.
In summary, all the three companies except Handelsbanken that do not undertake
customer differentiation, have the following as part of the objectives and
strategies of
CRM initiatives:
\fi360 {\f0\fs28 \bullet }{\f40 } Customer interaction
\fi360 {\f0\fs28 \bullet }{\f40 } Customer identification
\fi360 {\f0\fs28 \bullet }{\f40 } Customer differentiation and \par
}
50 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
{\phpg\posx1417\pvpg\posy1414\absw9353\absh12242 \f40 \fs21 \cf0 \fi360
{\f0\fs28 \bullet }\f40 \fs21 \cf0 {\f10 Personalization}{\f10 or}{\f10
customization }
{\f10 Moreover,}{\f10 all}{\f10 the}{\f10 companies}{\f10 are}{\f10 also}{\f10
expecting}{\f10 to}{\f10 get}{\f10 the}{\f10 following}{\f10 as}{\f10 some}
{\f10 of}{\f10 the }
benefits}{\f10 they}{\f10 expect}{\f10 to}{\f10 derive}{\f10 from}{\f10
their}{\f10 CRM}{\f10 initiatives: }
\fi360 {\f0\fs28 \bullet }{\f10 Higher}{\f10 profitability }
\fi360 {\f0\fs28 \bullet }{\f10 Customer}{\f10 retention}{\f10 and}{\f10
loyalty }
\fi360 {\f0\fs28 \bullet }{\f10 Cost}{\f10 savings}{\f10 and}{\f10
reduction}{\f10 and }
\fi360 {\f0\fs28 \bullet }{\f10 Positive}{\f10 impact}{\f10 on}{\f10 the}
{\f10 over}{\f10 all}{\f10 performance}{\f10 of}{\f10 the}{\f10 company }
{\f10 Finally,}{\f10 going}{\f10 back}{\f10 to}{\f10 the}{\f10 over}
{\f10 all}{\f10 research}{\f10 purpose,}{\f10 (i.e.}{\f10 to}{\f10
bring}{\f10 deeper }
understanding}{\f10 and}{\f10 insight}{\f10 into}{\f10 the}{\f10
objectives,}{\f10 strategies}{\f10 and}{\f10 expected}{\f10 benefits}{\f10
of }
CRM}{\f10 initiatives}{\f10 by}{\f10 service}{\f10 companies)}{\f10 We}{\f10
believe}{\f10 that}{\f10 the}{\f10 main}{\f10 objective,}{\f10 that}{\f10 is}
{\f10 the }
overall}{\f10 research}{\f10 purpose}{\f10 of}{\f10 this}{\f10 study}
{\f10 has}{\f10 been}{\f10 achieved}{\f10 and}{\f10 that}{\f10 the}
{\f10 service }
companies}{\f10 chosen}{\f10 for}{\f10 this}{\f10 particular}{\f10 study}{\f10
were}{\f10 good}{\f10 examples}{\f10 for}{\f10 the}{\f10 study.}{\f10 All}
{\f10 of }
them}{\f10 provided}{\f10 relevant}{\f10 and}{\f10 sufficient}{\f10 to}{\f10
answer}{\f10 the}{\f10 research}{\f10 questions}{\f10 and}{\f10 evaluate }
the}{\f10 theory}{\f10 against}{\f10 the}{\f10 practice. }
{\b \f10 7.2}{\b \f10 Implications}{\b \f10 and}{\b \f10 Recommendations}{\b
\f10 for}{\b \f10 Managers}{\b \f10 and}{\b \f10 Practitioners }
{\f10 Banks}{\f10 and}{\f10 other}{\f10 service}{\f10 companies}{\f10 have}
{\f10 a}{\f10 huge}{\f10 data}{\f10 and}{\f10 information}{\f10 about}
{\f10 their }
customers.}{\f10 We}{\f10 think}{\f10 that,}{\f10 they}{\f10 will}{\f10 get}
{\f10 a}{\f10 lot}{\f10 of}{\f10 benefits}{\f10 from}{\f10 their}{\f10 CRM}
{\f10 initiatives}{\f10 if }
these}{\f10 organizations}{\f10 could}{\f10 add}{\f10 the}{\f10 right}{\f10
technology}{\f10 to}{\f10 their}{\f10 CRM}{\f10 programs.}{\f10 Moreover, }
one}{\f10 important}{\f10 thing}{\f10 that}{\f10 we}{\f10 think}{\f10 banks}
{\f10 should}{\f10 take}{\f10 advantage}{\f10 of}{\f10 is}{\f10
personalization }
or}{\f10 customization.}{\f10 Although}{\f10 during}{\f10 our}{\f10
investigations,}{\f10 we}{\f10 found}{\f10 out}{\f10 that}{\f10 all}{\f10
the }
companies}{\f10 we}{\f10 studied,}{\f10 have}{\f10 personalization}{\f10 as}
{\f10 part}{\f10 of}{\f10 their}{\f10 CRM}{\f10 strategies}{\f10 in}{\f10 a}
{\f10 way }
but}{\f10 we}{\f10 are}{\f10 of}{\f10 the}{\f10 opinion}{\f10 that}{\f10
they}{\f10 can}{\f10 do}{\f10 even}{\f10 better}{\f10 and}{\f10 also}{\f10
get}{\f10 more}{\f10 benefits }
through}{\f10 personalization}{\f10 by}{\f10 adding}{\f10 the}{\f10
right}{\f10 technology.}{\f10 Base}{\f10 on}{\f10 the}{\f10 massive}{\f10
data }
that}{\f10 they}{\f10 collect,}{\f10 and}{\f10 continue}{\f10 to}{\f10 know}
{\f10 a}{\f10 lot}{\f10 of}{\f10 actions}{\f10 and}{\f10 activities}{\f10
their}{\f10 customers }
go}{\f10 through;}{\f10 base}{\f10 on}{\f10 the}{\f10 fact}{\f10 that}{\f10
the}{\f10 banker}{\f10 customer}{\f10 relationship}{\f10 is}{\f10 relatively}
{\f10 a}{\f10 long }
one}{\f10 and}{\f10 in}{\f10 most}{\f10 cases,}{\f10 it}{\f10 can}{\f10
exist}{\f10 until}{\f10 the}{\f10 customer}{\f10 dies. }
{\f10 Furthermore,}{\f10 we}{\f10 think}{\f10 that,}{\f10 service}{\f10
companies}{\f10 especially}{\f10 banks}{\f10 by}{\f10 using}{\f10 the}
{\f10 data }
can}{\f10 tailor}{\f10 some}{\f10 specific}{\f10 products}{\f10 and}{\f10
services}{\f10 to}{\f10 meet}{\f10 the}{\f10 needs}{\f10 of}{\f10 their}{\f10
customers }
at}{\f10 a}{\f10 very}{\f10 right}{\f10 time.}{\f10 This}{\f10 will}{\f10
then}{\f10 delight}{\f10 the}{\f10 customer}{\f10 and}{\f10 he}{\f10 or}{\f10
she}{\f10 will}{\f10 like}{\f10 to}{\f10 stay }
and}{\f10 continue}{\f10 to}{\f10 enjoy}{\f10 such}{\f10 services.}{\f10
Therefore,}{\f10 the}{\f10 customers'}{\f10 satisfaction}{\f10 will }
increase}{\f10 and}{\f10 therefore}{\f10 he}{\f10 or}{\f10 she}{\f10 would}
{\f10 like}{\f10 to}{\f10 be}{\f10 loyal}{\f10 and}{\f10 this}{\f10 will}
{\f10 then}{\f10 increase}{\f10 the }
banks}{\f10 profit}{\f10 eventually.}{\f10 In}{\f10 the}{\f10 long}{\f10
run,}{\f10 it}{\f10 will}{\f10 get}{\f10 positive}{\f10 impact}{\f10
on}{\f10 the}{\f10 overall }
performance}{\f10 of}{\f10 the}{\f10 company. }
{\b \f10 7.3}{\b \f10 Implications}{\b \f10 for}{\b \f10 Theory }
{\f10 Throughout}{\f10 our}{\f10 readings}{\f10 and}{\f10 search}{\f10 for}
{\f10 relevant}{\f10 theories}{\f10 for}{\f10 this}{\f10 study,}{\f10 we}
{\f10 came}{\f10 to }
the}{\f10 realization}{\f10 that}{\f10 yes}{\f10 there}{\f10 have}{\f10 been}
{\f10 some}{\f10 kind}{\f10 of}{\f10 previous}{\f10 studies}{\f10 on}{\f10
both}{\f10 the }
objectives}{\f10 and}{\f10 strategies}{\f10 and}{\f10 the}{\f10 benefits}{\f10
of}{\f10 CRM.}{\f10 However,}{\f10 it}{\f10 was}{\f10 very}{\f10 difficult}
{\f10 for }
us}{\f10 to}{\f10 lay}{\f10 hands}{\f10 on}{\f10 one}{\f10 single}{\f10
study,}{\f10 which}{\f10 has}{\f10 all}{\f10 the}{\f10 relevant}{\f10
information}{\f10 we}{\f10 were }
looking}{\f10 for.}{\f10 Further}{\f10 more,}{\f10 we}{\f10 found}{\f10 out}
{\f10 that,}{\f10 the}{\f10 studies}{\f10 by}{\f10 previous}{\f10 authors}
{\f10 on}{\f10 this }
area}{\f10 are}{\f10 very}{\f10 scattered.}{\f10 So}{\f10 we}{\f10 had}
{\f10 to}{\f10 take}{\f10 our}{\f10 time}{\f10 to}{\f10 gather}{\f10
all}{\f10 the}{\f10 relevant }
information,}{\f10 that}{\f10 is}{\f10 pieces}{\f10 of}{\f10 information}
{\f10 from}{\f10 various}{\f10 researchers}{\f10 and}{\f10 put}{\f10
them }
together}{\f10 to}{\f10 make}{\f10 our}{\f10 literature}{\f10 review}{\f10
in}{\f10 the}{\f10 second}{\f10 chapter}{\f10 of}{\f10 this}{\f10
project. }\par
}
51 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
Therefore we can confidently conclude that, this piece will contribute immensely to

theory in this area particularly for future researchers.
{\b 7.4}{\b Implications}{\b for}{\b Future}{\b Research }
\par}{\phpg\posx1417\pvpg\posy1421\absw9279\absh3280 \sl-275 \par\f10 \fs21 \cf0 It
will be interesting for other researchers to conduct their study in
these related
\par}{\phpg\posx1417\pvpg\posy1421\absw9279\absh3280 \sl-275 \f10 \fs21 \cf0 areas:

\fi360 {\f0\fs28 \bullet }{\f40 } The impact of CRM on service companies
especially banks.
{\f0\fs28 \bullet }{\f40 } The measurement of the impact of CRM on service
companies.
{\f0\fs28 \bullet }{\f40 } Can conduct similar studies from the customers' point
of view.
{\f0\fs28 \bullet }{\f40 } Can conduct similar studies this time
round with electronic customer
relationship management (eCRM). \par
}
52 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\fs21 \cf0 Reference:
\cf0 {\b0 Adebanjo,}{\b0 D.}{\b0 (2003).}{\b0 Classifying}{\b0 and}{\b0
Selecting}{\b0 e-CRM}{\b0 applications}{\b0 an}{\b0 analysis }
{\b0 based}{\b0 proposal.}{\b0 Available}{\b0 on-line:}{\field{\*\fldinst {\b
HYPERLINK}{\b "http://www.Emeraldinsight.com/researchregister"}}
{\fldrslt{{\b0 \cf5 {\ul w}{\ul w}{\ul w}{\ul .}}{\b0 \cf5 {\ul }{\ul E}{\ul m}
{\ul e}{\ul r}{\ul a}{\ul l}{\ul d}{\ul i}{\ul n}{\ul s}{\ul i}{\ul g}{\ul h}{\ul
t}{\ul .}{\ul c}{\ul o}{\ul m}{\ul /}{\ul r}{\ul e}{\ul s}{\ul e}{\ul a}{\ul r}{\ul
c}{\ul h}{\ul r}{\ul e}{\ul g}{\ul i}{\ul s}{\ul t}{\ul e}{\ul r} }
\par}
}}}{\phpg\posx1417\pvpg\posy2527\absw9403\absh11416 \sl-165 \b \f10 \fs21 \cf0
\fi3094 {\b0 \fs14 th }
{\b0 The}{\b0 site}{\b0 was}{\b0 accessed}{\b0 on}{\b0 28}{\b0 November}
{\b0 2004 }
\cf0 {\b0 Balaji,}{\b0 P.}{\b0 &}{\b0 Alexander,}{\b0 T.(2003).}{\b0
On}{\b0 the}{\b0 Use}{\b0 of}{\b0 Optimisation}{\b0 for}{\b0 Data}{\b0
Mining: }
{\b0 Theoretical}{\b0 Interactions}{\b0 and}{\b0 Ecrm}{\b0 Opportunities.}
{\b0\i Management}{\b0\i Sciences}{\b0\i 49(10), }
{\b0 1327-1343. }
\cf0 {\b0 Bose,}{\b0 R.}{\b0 (2002).}{\b0 Customer}{\b0 relationship}
{\b0 management:}{\b0 key}{\b0 components}{\b0 for}{\b0 IT }
{\b0 success,}{\b0\i Industrial}{\b0\i Management}{\b0\i &}{\b0\i data}{\b0\i
systems,}{\b0\i 102(2),}{\b0 89-97. }
\cf0 {\b0 Bradshaw,}{\b0 D.}{\b0 and}{\b0 Brash,}{\b0 C.}{\b0 (2001).}
{\b0 Management}{\b0 customer}{\b0 relationships}{\b0 in}{\b0 the}{\b0
e- }
{\b0 business}{\b0 world:}{\b0 how}{\b0 to}{\b0 personalise}{\b0 computer}{\b0
relationships}{\b0 for}{\b0 increased}{\b0 profitability. }
{\b0\i International}{\b0\i journal}{\b0\i of}{\b0\i retail}{\b0\i and}{\b0\i
distribution}{\b0\i management}{\b0 ,}{\b0 29(12),}{\b0 520-530. }
\cf0 {\b0 Bayon,}{\b0 T}{\b0 Gutsche,}{\b0 J,}{\b0 and}{\b0 Baue,r}{\b0 H}
{\b0 (2002).}{\b0 Customer}{\b0 equity}{\b0 marketing:}{\b0 Touching}{\b0 the
}
{\b0 Intangible.}{\b0 European}{\b0 Management}{\b0 Journal.}{\b0 Vol.20,}{\b0
pp}{\b0 213-222. }
\cf0 {\b0 Burnett,}{\b0 K.}{\b0 (2001),}{\b0\i Handbook}{\b0\i of}{\b0\i
key}{\b0\i Customer}{\b0\i Relationship}{\b0\i Management:}{\b0\i The }
{\b0\i Definitive}{\b0\i Guide}{\b0\i to}{\b0\i Winning,}{\b0\i Managing}{\b0\i
and}{\b0\i Developing}{\b0\i Key}{\b0\i Account}{\b0\i Business}{\b0 ,}{\b0
New }
{\b0 Jersey:}{\b0 Prentice}{\b0 Hall}{\b0 p.}{\b0 40-48. }
\cf0 {\b0 Canel,}{\b0 C.}{\b0 Rosen,}{\b0 D.}{\b0 and}{\b0 Anderson,}{\b0
E.}{\b0 A.}{\b0 (2000),}{\b0 Just-in-time}{\b0 is}{\b0 not}{\b0 just}
{\b0 for }
{\b0 manufacturing:}{\b0 a}{\b0 service}{\b0 perspective,}{\b0\i
Industrial}{\b0\i management}{\b0\i and}{\b0\i data}{\b0\i systems }
{\b0 Vol.(100)2,}{\b0 p.}{\b0 51-60. }
\cf0 {\b0 Catora,}{\b0 P.,}{\b0 R.,}{\b0 Graham,}{\b0 J.,}{\b0 I.,}{\b0
&}{\b0 Ghauri,}{\b0 P.,}{\b0 N.}{\b0 (2002).}{\b0\i International}{\b0\i
marketing}{\b0 . }
{\b0 London:}{\b0 McGraw-}{\b0 Hill. }
\cf0 {\b0 Chaffey,}{\b0 D.}{\b0 (2002).}{\b0\i E-business}{\b0\i and}{\b0\i E-
commerce}{\b0\i management.}{\b0 Prentice}{\b0 Hall,}{\b0 p}{\b0 330- }
{\b0 370 }
\cf0 {\b0 Chue,}{\b0 J.}{\b0 and}{\b0 Gerry,}{\b0 M.}{\b0 (2002),}{\b0
Customer}{\b0 relationship,}{\b0 managent:}{\b0 People,}{\b0 process }
{\b0 and}{\b0 technology.}{\b0\i Business}{\b0\i Process}{\b0\i Management}
{\b0\i Journal}{\b0 ,}{\b0 Vol.7}{\b0 (4)}{\b0 pp.}{\b0 672-688. }
\cf0 {\b0 Clark,}{\b0 C.}{\b0 H.}{\b0 (2001).}{\b0 Profiting}{\b0 from}
{\b0 Europe's}{\b0 Internet}{\b0 banking}{\b0 Available}{\b0 On-line: }
\fi7969 {\b0 \fs14 th }
{\field{\*\fldinst {\b HYPERLINK}{\b
"http://www.forrester.com/ER/research/briefs"}}
{\fldrslt{{\b0 \cf5 {\ul w}{\ul w}{\ul w}{\ul .}{\ul f}{\ul o}{\ul r}{\ul r}{\ul e}
{\ul s}{\ul t}{\ul e}{\ul r}{\ul .}{\ul c}{\ul o}{\ul m}{\ul /}{\ul E}{\ul R}
{\ul /}{\ul r}{\ul e}{\ul s}{\ul e}{\ul a}{\ul r}{\ul c}{\ul h}{\ul /}{\ul b}{\ul
r}{\ul i}{\ul e}{\ul f}{\ul s}}
}}}{\b0 This}{\b0 website}{\b0 was}{\b0 accessed}{\b0 on}{\b0 10}{\b0
January }
{\b0 2005. }
\cf0 {\b0 Croen,}{\b0 R.}{\b0 (2001).}{\b0 Speech}{\b0 recognition:}
{\b0 the}{\b0 future}{\b0 of}{\b0 customer}{\b0 relationship }
\fi5854 {\b0 \fs14 th }
{\b0 management}{\b0 (CRM),}{\b0 \cf5 www.eloyalty.net}{\b0 accessed}{\b0 on}
{\b0 19}{\b0 December}{\b0 2004. }
\cf0 {\b0 Crosby,}{\b0 L.}{\b0 A.}{\b0 (2002),}{\b0 Exploring}{\b0
some}{\b0 myths}{\b0 about}{\b0 customer}{\b0 relationship }
{\b0 management.}{\b0\i Managing}{\b0\i service}{\b0\i quality}{\b0 ,}{\b0 Vol.
(12)5}{\b0 pp.}{\b0 271-277. }\par
}
53 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
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t}{\ul h} \par
}
Golfinger, C. \par
}
Internet \par
}
Banking \par
}
Key \par
}
Issues. \par
}
{\phpg\posx8320\pvpg\posy14392\absw918\absh241 \f10 \fs21 \cf0 \f10 \fs21 \cf0 On-
line. \par
}
Available: \par
}
{\phpg\posx1417\pvpg\posy14668\absw4106\absh241 \f10 \fs21 \cf5 {\field{\*\fldinst
{\b HYPERLINK}{\b "http://www.fininter.net/"}}
{\fldrslt{\f10 \fs21 \cf5 {\ul w}{\ul w}{\ul w}{\ul .}{\ul f}{\ul i}{\ul n}{\ul i}
{\ul n}{\ul t}{\ul e}{\ul r}{\ul .}{\ul n}{\ul e}{\ul t}
}}}{\cf0 {\ul }{\ul 1}{\ul 5}}{\cf0 {\ul }{\ul N}{\ul o}{\ul v}{\ul e}{\ul m}
{\ul b}{\ul e}{\ul r}}{\cf0 {\ul }{\ul 2}{\ul 0}{\ul 0}{\ul 4}{\ul .} }\par
}
(2004).
{\fs14 {\ul t}{\ul h} }\par
}
54 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
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ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
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010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
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61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
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ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
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ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
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61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
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\par
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Social \par
}
Research Methods Series, 5, 2 \par
}
{\phpg\posx5766\pvpg\posy5646\absw210\absh160 \f10 \fs14 \cf0 \f10 \fs14 \cf0 nd
\par
}
{\phpg\posx6274\pvpg\posy5684\absw351\absh241 \f10 \fs21 \cf0 \f10 \fs21 \cf0 Ed
\par
}
{\phpg\posx6898\pvpg\posy5684\absw713\absh241 \f10 \fs21 \cf0 \f10 \fs21 \cf0 Sage,
\par
}
Newbury \par
}
{\phpg\posx9132\pvpg\posy5684\absw646\absh241 \f10 \fs21 \cf0 \f10 \fs21 \cf0 Park,
\par
}
{\phpg\posx10022\pvpg\posy5684\absw555\absh241 \f10 \fs21 \cf0 \f10 \fs21 \cf0 CA..
\par
}
58 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
14328191a1082342b1c11552d1f02433627282090a161718191a25262728292a3435363738393a43444
5464748494a535455565758595a636465666768696a737475767778797a838485868788898a92939495
0102030405060708090a0bffc400b511000201020404030407050404000102770001020311040521310
61241510761711322328108144291a1b1c109233352f0156272d10a162434e125f11718191a26272829
2a35363738393a434445464748494a535455565758595a636465666768696a737475767778797a82838
0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\cf0 Interview Guide
Introduction
{\b0 \f20 The}{\b0 \f20 interview}{\b0 \f20 will}{\b0 \f20 focus}{\b0 \f20 on}
{\b0 \f20 questions}{\b0 \f20 related}{\b0 \f20 to}{\b0 \f20 objectives,}
{\b0 \f20 strategies}{\b0 \f20 and}{\b0 \f20 initiatives}{\b0 \f20 of}{\b0 \f20
CRM }
{\b0 \f20 and}{\b0 \f20 expected}{\b0 \f20 benefits}{\b0 \f20 your}{\b0 \f20
organization}{\b0 \f20 intends}{\b0 \f20 to}{\b0 \f20 derive}{\b0 \f20 from}
{\b0 \f20 these}{\b0 \f20 CRM}{\b0 \f20 initiatives.}{\b0 \f20 The }
{\b0 \f20 interview}{\b0 \f20 guide}{\b0 \f20 below}{\b0 \f20 will}{\b0 \f20
give}{\b0 \f20 you}{\b0 \f20 an}{\b0 \f20 idea}{\b0 \f20 of}{\b0 \f20 the}{\b0
\f20 areas}{\b0 \f20 that}{\b0 \f20 will}{\b0 \f20 be}{\b0 \f20 covered. }\par
}
\cf0 General questions:
\fi60 {\b0 1.}{\b0 We}{\b0 would}{\b0 like}{\b0 to}{\b0 know}{\b0 your}{\b0
name}{\b0 and}{\b0 position}{\b0 in}{\b0 this}{\b0 organization. }
{\b0 2.}{\b0 Can}{\b0 you}{\b0 please}{\b0 give}{\b0 us}{\b0 a}{\b0 brief}
{\b0 background}{\b0 and}{\b0 history}{\b0 of}{\b0 this}{\b0 company? }
\fi60 {\b0 3.}{\b0 When}{\b0 did}{\b0 your}{\b0 company}{\b0 start}{\b0 to}
{\b0 embark}{\b0 on}{\b0 customer}{\b0 relationship}{\b0 management}{\b0
(CRM)? }
Questions for the research questions:
Questions for research question 1
\fi60 {\b0 4.}{\b0 Could}{\b0 you}{\b0 describe}{\b0 in}{\b0 detail}{\b0 how}
{\b0 you}{\b0 would}{\b0 achieve}{\b0 the}{\b0 objectives}{\b0 and}{\b0 the}
{\b0 benefits}{\b0 of }
{\b0 your}{\b0 CRM}{\b0 program? }
\fi60 {\b0 5.}{\b0 How}{\b0 do}{\b0 you}{\b0 describe}{\b0 specifically}{\b0
the}{\b0 strategies}{\b0 you}{\b0 will}{\b0 undertake}{\b0 to}{\b0 achieve}
{\b0 the}{\b0 intended }
{\b0 benefits? }
{\b0 6.}{\b0 Could}{\b0 you}{\b0 please}{\b0 describe}{\b0 customer}{\b0
identification}{\b0 as}{\b0 part}{\b0 of}{\b0 your}{\b0 CRM}{\b0
strategies? }
{\b0 7.}{\b0 We}{\b0 would}{\b0 like}{\b0 to}{\b0 get}{\b0 a}{\b0
description}{\b0 of}{\b0 customer}{\b0 differentiation}{\b0 as}{\b0 part}{\b0
of}{\b0 your}{\b0 CRM }
{\b0 initiatives. }
\fi60 {\b0 8.}{\b0 We}{\b0 would}{\b0 like}{\b0 to}{\b0 understand}{\b0 in}
{\b0 detail}{\b0 how}{\b0 you}{\b0 go}{\b0 about}{\b0 personalization}{\b0
in}{\b0 your}{\b0 CRM }
{\b0 program. }\par
}
59 \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101010
10101010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101ffdb0043010101010101010101010101010101010101010101010101010101010101010
1010101010101010101010101010101010101010101010101010101010101010101ffc0001108034a02
5303012200021101031101ffc4001f00000105010101010101000000000000000001020304050607080
90a0bffc400b5100002010303020403050504040000017d010203000411051221314106135161072271
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0028a28a0028a28a0028a28a0028a28a0028a28
\par
}
\cf0 9. Could you please describe in detail how you interact with your customers
according to the
objectives and strategies of your CRM program? \par
}
\cf0 Questions for the research question 2.
{\b0 \f20 10.}{\b0 \f20 We}{\b0 \f20 would}{\b0 \f20 like}{\b0 \f20 to}{\b0
\f20 learn}{\b0 \f20 about}{\b0 \f20 the}{\b0 \f20 objectives}{\b0 \f20 and}
{\b0 \f20 benefits}{\b0 \f20 of}{\b0 \f20 your}{\b0 \f20 CRM}{\b0 \f20
initiatives}{\b0 \f20 or }
{\b0 \f20 programs. }
\fi59 {\b0 \f20 11.}{\b0 \f20 Could}{\b0 \f20 you}{\b0 \f20 please}{\b0 \f20
describe}{\b0 \f20 specifically}{\b0 \f20 the}{\b0 \f20 main}{\b0 \f20 reasons}
{\b0 \f20 why}{\b0 \f20 you}{\b0 \f20 decided}{\b0 \f20 to}{\b0 \f20 embark}
{\b0 \f20 on }
{\b0 \f20 your}{\b0 \f20 CRM}{\b0 \f20 program? }
{\b0 \f20 12.}{\b0 \f20 We}{\b0 \f20 would}{\b0 \f20 like}{\b0 \f20 to}{\b0
\f20 know}{\b0 \f20 in}{\b0 \f20 detail}{\b0 \f20 about}{\b0 \f20 the}{\b0
\f20 intended}{\b0 \f20 benefits}{\b0 \f20 that}{\b0 \f20 your}{\b0 \f20
organization}{\b0 \f20 was }
{\b0 \f20 expected}{\b0 \f20 to}{\b0 \f20 derive}{\b0 \f20 from}{\b0 \f20 it}
{\b0 \f20 when}{\b0 \f20 you}{\b0 \f20 first}{\b0 \f20 decided}{\b0 \f20 to}
{\b0 \f20 embark}{\b0 \f20 on}{\b0 \f20 your}{\b0 \f20 CRM}{\b0 \f20
program. }
\fi59 {\b0 \f20 13.}{\b0 \f20 Could}{\b0 \f20 you}{\b0 \f20 please}{\b0 \f20
tell}{\b0 \f20 us}{\b0 \f20 in}{\b0 \f20 your}{\b0 \f20 perspective}{\b0 \f20
some}{\b0 \f20 of}{\b0 \f20 the}{\b0 \f20 benefits}{\b0 \f20 you}{\b0 \f20
have}{\b0 \f20 seen}{\b0 \f20 so}{\b0 \f20 far? }
\fi59 {\b0 \f20 14.}{\b0 \f20 With}{\b0 \f20 regards}{\b0 \f20 to}{\b0 \f20
the}{\b0 \f20 benefits}{\b0 \f20 of}{\b0 \f20 the}{\b0 \f20 CRM}{\b0 \f20
program,}{\b0 \f20 how}{\b0 \f20 do}{\b0 \f20 you}{\b0 \f20 describe}{\b0 \f20
increase}{\b0 \f20 in }
{\b0 \f20 profitability? }
\fi60 {\b0 \f20 15.}{\b0 \f20 How}{\b0 \f20 do}{\b0 \f20 you}{\b0 \f20
describe}{\b0 \f20 customer}{\b0 \f20 loyalty}{\b0 \f20 and}{\b0 \f20
retention}{\b0 \f20 when}{\b0 \f20 it}{\b0 \f20 comes}{\b0 \f20 to}{\b0 \f20
the}{\b0 \f20 expected }
{\b0 \f20 benefits? }
\fi59 {\b0 \f20 16.}{\b0 \f20 How}{\b0 \f20 would}{\b0 \f20 you}{\b0 \f20
describe}{\b0 \f20 revenue}{\b0 \f20 enhancement}{\b0 \f20 as}{\b0 \f20 one}
{\b0 \f20 of}{\b0 \f20 the}{\b0 \f20 benefits}{\b0 \f20 of}{\b0 \f20 your}{\b0
\f20 CRM }
{\b0 \f20 initiatives? }
\fi59 {\b0 \f20 17.}{\b0 \f20 Can}{\b0 \f20 you}{\b0 \f20 please}{\b0 \f20
talk}{\b0 \f20 about}{\b0 \f20 cost}{\b0 \f20 savings}{\b0 \f20 and}{\b0 \f20
reduction}{\b0 \f20 as}{\b0 \f20 a}{\b0 \f20 benefit}{\b0 \f20 of}{\b0 \f20
your}{\b0 \f20 CRM }
{\b0 \f20 initiatives? }
{\b0 \f20 18.}{\b0 \f20 Could}{\b0 \f20 you}{\b0 \f20 please}{\b0 \f20 tell}
{\b0 \f20 us}{\b0 \f20 in}{\b0 \f20 your}{\b0 \f20 own}{\b0 \f20 perspective}
{\b0 \f20 some}{\b0 \f20 of}{\b0 \f20 the}{\b0 \f20 benefits}{\b0 \f20 you}
{\b0 \f20 have}{\b0 \f20 seen}{\b0 \f20 so }
{\b0 \f20 far? }
{\b0 \f20 19.}{\b0 \f20 In}{\b0 \f20 general,}{\b0 \f20 is}{\b0 \f20 there}{\b0
\f20 anything}{\b0 \f20 you}{\b0 \f20 would}{\b0 \f20 like}{\b0 \f20 to}
{\b0 \f20 talk}{\b0 \f20 about}{\b0 \f20 concerning}{\b0 \f20 the}{\b0 \f20
objectives, }
{\b0 \f20 strategies}{\b0 \f20 and}{\b0 \f20 expected}{\b0 \f20 benefits}{\b0
\f20 of}{\b0 \f20 your}{\b0 \f20 CRM}{\b0 \f20 program}{\b0 \f20 that}{\b0
\f20 we}{\b0 \f20 have}{\b0 \f20 not}{\b0 \f20 asked}{\b0 \f20 in}{\b0 \f20
your}{\b0 \f20 own }
{\b0 \f20 words? }\par
}
Thank you so much for your time.
Other Information that we would like to get are:
\cf0 \fi360 {\f0\fs28 \bullet }{\f40 } Company background information
\fi360 {\f0\fs28 \bullet }{\f40 } Products and services
\fi360 {\f0\fs28 \bullet }{\f40 } Geographical area of operation and Market
\par
}
60 \par
}
}

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