From Local Information Systems to Global Customer Relationship Management

From Local Information Systems to Global Customer Relationship Management

Ulas Akkucuk (Bogazici University, Turkey)
DOI: 10.4018/978-1-4666-4639-1.ch023
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Abstract

Advances in computer and information technologies have been utilized by companies all over the world since the 1990s. Corresponding roughly to the same period, global trade has increased dramatically. The opening up of large markets like China and the Eastern Europe contributed to this trend. National companies turned global and had to manage operations in a number of different countries. Companies strived to maintain better customer relationships through CRM programs aimed at managing the flow of information, interacting with the customers, and in the end, formulating individualized offerings for them. Globalization has led to the development of the new notion of Global Customer Relationship Management as opposed to having independent local CRM programs operating in the subsidiaries. This chapter presents the issues facing the implementation of such Global CRM programs and provides the important conceptual frameworks proposed in the literature.
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Background

Developments in information technology have radically changed the flow of information inside the company. These developments have also increased the firm’s capacity to reach and serve the global customers (Craig & Douglas, 2005). Global information systems make possible improved communication and control, better coordination and integration of operations on a global scale (Kim & Oh, 2000). It has also been argued that the growth of the “born global” firms serving niche markets worldwide has been fueled by the developments in the international information systems (Knight & Cavusgil, 2004).

CRM can be defined as a system for managing customer information, and using this information in a way to retain customers and acquire new ones so that the firm will maximize the lifetime value of the customer. The most commonly used framework for CRM was provided by Peppers and Rogers (2004) and is called the IDIC framework. This framework has a four step procedure which starts by firms Identifying potential and existing customers, Differentiating among them according to needs and value to the company, Interacting with them via two-way channels of communication and finally Customizing individualized offerings for them (Peppers & Rogers, 2004).

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