A New Conceptual Framework for Greater Success with Integration of E-CRM

A New Conceptual Framework for Greater Success with Integration of E-CRM

Soumaya Ben Letaifa (Université du Québec à Montréal, Canada)
DOI: 10.4018/978-1-60566-154-4.ch002
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Abstract

This chapter examines how e-CRM has affected both organizational and individual behavior in a leading Canadian bank. The innovative and customer-driven culture of this bank pushed it toward early adoption of e-CRM technology. The findings emphasize the role played by many strategic and organizational dimensions in the success of e-CRM implementation. In fact, to make e-CRM efforts pay off, new business processes are required to achieve more effective and closer interactions with customers. The shift toward customer orientation needs to be supported by a shift in organizational objectives and processes. The results indicate that employees’ individual behavior successfully changed from a transactional to a relational perspective, and that training and coaching ensured a successful integration of e-CRM technology. Nevertheless, the employee reward and evaluation system, which should have been changed to leverage CRM impact, has surprisingly been forgotten. This deficiency is addressed by proposing a new framework for enhancing e-CRM effectiveness.
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The Shift To Crm

Since the 1980s, researchers have been talking more and more about an era of focusing on customer retention (Sheth, 2002). Relational marketing, in fact, was born of the premise that keeping a customer is more profitable than attracting a new one (Coyles & Gokey, 2005; Perrien, Filiatrault, & Ricard, 1993) and emerged following the abandonment, by some, of the logic of customer acquisition for a new logic of customer retention (Sheth, 2002). This logic also brought certain concepts to the fore, including customer management, better known as “Customer Relationship Management” or e-CRM (Mitussis & O’Malley, 2004; Sheth, 2002).

Although, in the current effervescent context with regard to electronic commerce, CRM is seen as a major issue among firms, few studies have explored its concrete implications for specific industries (Liu, 2007). Ten years after the concept of a relational approach began to be studied, Perrien, Filiatrault, and Ricard (1993) noted, more specifically for the banking sector, problems and constraints linked to implementation of such an approach. Among these were the need for a customer-oriented culture and better knowledge of customers, a change in the evaluation process for personnel in contact with customers, and decreased rotation of personnel. More than 20 years later, after much research on the subject, the development of a number of e-CRM tools, and many changes in firms following reengineering, the questions being asked are, What picture can be painted and diagnosis be made of implementation of a relational approach? Have financial institutions made the necessary changes to effectively implement e-CRM?

The objective of this chapter is to examine organizational strategies implemented by banks to make a successful migration to a relational approach. The research, conducted at a well-known Canadian bank, addresses the following points:

  • 1.

    To understand the early experiences of pioneering banks with operationalizing e-CRM

  • 2.

    To identify the current weaknesses or deficits in the implementation of e-CRM

  • 3.

    To offer recommendations and a new conceptual framework for greater success with integration of e-CRM

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Conceptual Framework

The need to focus on the customer has entailed much investment in information technologies, and so the first large firms to install IT systems have benefited from an enormous competitive advantage. While mass communications and advertising have lost effectiveness, customized, targeted, specific communications are emerging as the means of attracting and retaining customers (Ben Letaifa & Perrien, 2007). The implementation of a market-oriented strategy requires knowledge, relationship management, and technical skills. Focus on the customer, marketing segmentation, targeting, and positioning, supported by information technologies, form an essential asset in meeting the new marketing challenges, whence the trend toward implementing CRM over the last decade. Indeed, firms’ information systems, especially those in banks, have been growing constantly for a decade and include ERP (enterprise resource planning), CRM, and SCM (supply chain management) (Chen & Li, 2006).

For banks, there have been several specific reasons for making this investment. First, the banks hoped to optimize their costs: ERP was the integrated software package that met this need by acting, in effect, on expenditures. Because cost reduction was not open-ended, firms then sought to act on the second parameter of the equation by attempting to influence revenue generation; CRM met this need by improving management of sales, marketing, and customer service.

Complete Chapter List

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International Advisory Board
Table of Contents
Preface
In Lee
Chapter 1
Keith F. Ward, Erik Rolland, Raymond A. Patterson
Proponents of Customer Relationship Management (CRM) suggest that a firm can develop a value creation relationship, such that an increase in... Sample PDF
Managing the Customer Relationship: A Framework for E-CRM Analysis
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Chapter 2
Soumaya Ben Letaifa
This chapter examines how e-CRM has affected both organizational and individual behavior in a leading Canadian bank. The innovative and... Sample PDF
A New Conceptual Framework for Greater Success with Integration of E-CRM
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Chapter 3
Tim Coltman
Most sectors of industry, commerce, and government have reported variation in the performance payoff from electronic customer relationship... Sample PDF
Managerial Discretion and E-CRM Performance
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Chapter 4
Patricia T. Warrington, Elizabeth Gangstad, Richard Feinberg, Ko de Ruyter
Multi-channel retailers that utilize an e-CRM approach stand to benefit in multiple arenas by providing targeted customer service as well as gaining... Sample PDF
Multi-Channel Retailing and Customer Satisfaction: Implications for E-CRM
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Chapter 5
Veronica Liljander, Pia Polsa, Kim Forsberg
Not until very recently has mobile phone technology become sophisticated enough to allow more complex customized programs, which enable companies to... Sample PDF
Do Mobile CRM Services Appeal to Loyalty Program Customers?
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Chapter 6
Michael Shumanov
While the managerial rationale for adopting customer relationship management (CRM) has been fairly well articulated in the literature, research on... Sample PDF
Developing a Global CRM Strategy
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Chapter 7
John Gallaugher
This article synthesizes and leverages two strategic frameworks when analyzing the true nature of strategy and the Internet: (1) the concept of... Sample PDF
Strategic Positioning and Resource-Based Thinking: Cutting Through the Haze of Punditry to Understand Factors Behind Sustainable, Successful Internet Businesses
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Chapter 8
Savvas Papagiannidis
This chapter covers the concept of e-business models and how they relate to the music video and television environments. After identifying the value... Sample PDF
A Tale of E-Business Models: From the Music to the Television Industry
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Chapter 9
Kirill M. Yurov
Healthcare technology markets have been recently identified as potential investment targets. Having survived a major environmental shock, the... Sample PDF
Strategic Maneuvering in Healthcare Technology Markets: The Case of Emdeon Corporation
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Chapter 10
Olli Kuivalainen
The aim of this chapter is to provide a holistic exploration of the development of the business model of a magazine Web site, and of the factors... Sample PDF
Complementary Role of Website in Business Model Development
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Chapter 11
Tobias Kollmann
LetsWorkIt.de is a German B2C platform for different kinds of service and handcraft orders. Based on the concept of reverse auctions, demanders... Sample PDF
A Reverse Auction-Based E-Business Model for B2C Service Markets
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Chapter 12
Denis Caro
The 21st century continues to witness the transformation of organizational systems globally through the deployment of Information and Communication... Sample PDF
Evolving E-Health Systems: Symbiotic Constructs Between Corporate and E-Healthcare Worlds in International Space
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Chapter 13
Karl Knapp, Sushil K. Sharma, Kevin King
Offshore information technology (IT) outsourcing has been becoming mainstream alternative to inhouse operations. While offshore development is a... Sample PDF
Socio-Economic Impacts of Offshore Outsourcing of Information Technology
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Chapter 14
Indrit Troshani
The eXtensible Business Reporting Language (XBRL) is an emerging XML-based standard which has the potential to significantly improve the efficiency... Sample PDF
Towards Theory Development for Emergent E-Business Innovations: Using Convergent Interviewing to Explore the Adoption of XBRL in Australia
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Chapter 15
Bill Vassiliadis
Copyright protection is becoming an important issue for organizations that create, use, and distribute digital content through e-commerce channels.... Sample PDF
An Introduction to the Management and Protection of Intellectual Property Rights
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Chapter 16
Tagelsir Mohamed Gasmelseid
The unprecedented advancements witnessed in the field of information and communication technology over the last couple of years are significantly... Sample PDF
Intelligent Contracting: An E-Supply Chain Management Perspective
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Chapter 17
Jaeki Song, Eric A. Walden
In this work, we examined the boundary of the applicability of network effects theory. We theorized that when adoption is cheap, the cognitive... Sample PDF
The Applicability of Network Effect Theory to Low-Cost Adoption Decisions: An Investigation of Peer-to-Peer File Sharing Technologies
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Chapter 18
Wen-Jang Jih
Two mutually reinforcing forces currently are at work to propel an upward spiraling in the business arena. As wireless communication technology... Sample PDF
An Empirical Analysis of Cellular Phone Users' Convenience Perception and Its Impact on Shopping Intention in Mobile Commerce
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Chapter 19
Fang He
Along with the exponential increase in online business transactions, the online payment system has gained in popularity because vendors and... Sample PDF
The Effects of System Features, Perceived Risk and Benefit, and Customer Characteristics on Online Bill Paying
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About the Contributors