Show Me the Money: Improving our Understanding of How Organizations Generate Return from Technology-Led-Marketing Change
Abstract
Purpose
– The purpose of this paper is to examine the conundrum between the increasingly importance of investments in new information technologies (IT) on marketing practice and marketing scholars continuing to question the profitability of IT-led marketing initiatives.
Design/methodology/approach
– Systematic reviews of the relevant literature on the financial and market return of customer relationship management (CRM) investments from both Marketing and Information Systems (IS) literature were conducted.
Findings
– Findings suggest that, while both IS and Marketing scholars try to determine what generates returns on CRM investment, the IS community has a more complete conceptualisation as to how these returns are realised. A broader epistemological framework, better suited to observing how organisations benefit from IT-led management initiatives, enables a more comprehensive assessment of CRM investment.
Research limitations/implications
– Supplementing the methods used by Marketing scholars with those frequently used in IS research would likely improve the assessment of IT-led Marketing investments and the resultant prescriptions for Marketing practitioners.
Practical implications
– Failure to assess accurately the return from IT-led Marketing investments hinders managers’ ability to manage them for maximum performance improvements, all the more important now that organisations are preparing for large-scale investments in big data and social media strategies.
Originality/value
– This paper is the first to illustrate how a combination of Marketing and IS scholarship can assist Marketing research and practice.
Supplementary resource (1)
... Cho et al., 2024). Determining the return on information technology investment is also essential (IT) as well as growing IT capacities (Melville et al., 2004) constitute significant additions to the field of information systems research and the resource-based view (RBV) because capabilities positively oriented technological opportunism that enables companies to compete better (Cao et al., 2019;Maklan et al., 2015). ...
During economic crises, innovation performance becomes a critical driver of competitiveness. Technological opportunism is recognized within dynamic markets as a key driver for innovation development. However, gaps persist in understanding how technological flexibility, pursuit of entrepreneurial opportunities, and resource optimization influence innovation performance. In order to fill these gaps, this study looks at the relationship between technical opportunism and innovation performance while taking managerial ties and entrepreneurial orientation into account as moderating factors. The study, which collected 93 questionnaires from managers, team leaders, branch leaders, and directors of Indonesian banks, finds a favourable and statistically significant correlation between technological opportunism and innovation performance. It was discovered that managerial ties and entrepreneurial inclination moderated this link. The findings contribute to bridging knowledge gaps in entrepreneurship, technology, and innovation, particularly within the banking industry.
... Kular (2017) identified four value aspects of customer engagement: customer lifetime value, knowledge value, influencer value, and referral value. Customer lifetime value refers to the amount of money customers are expected to spend on the brand throughout future relationships with a company (Maklan et al. 2015). Organizations use consumer behaviors to predict their future net profit attributed to the growing company-customer relationship (Xie et al., 2016). ...
Business dynamics are also found in the digital economy, forcing the development of new business models to achieve strategic marketing excellence. It was verified that half of the world's population is present in social media platforms. Social media can help organizations gain insights into markets and improve business intelligence. Social media is a flexible medium that companies can use in marketing strategies and build engagement and develop a communication plan and monitor performance. Marketing strategies in social media is a strategy to communicate brands, services, products, and ideas. Thus, it becomes evident that strategies in social media represent an intangible benefit related to marketing communication objectives. Research on social media strategy is an area of marketing communication, diverse and very fragmented, hindering its development as a promising research area. It is intended to conduct a review of the literature of social media strategies in order to take stock of theoretical and empirical development and identify research themes.
... The ability to transform knowledge into useful, multi-channel and up-to-date communication is what distinguishes a company from competitors, and the key success factor is the adaptation of activities to the most important results and innovation (Miller, 2011;Rizzo, 2015;Maklan et al., 2015;Papa et al., 2021;Filieri & Mariani, 2021). Many companies have at their disposal data and tools, but find it problematic to use them (Berman et al., 2007;King, 2018;Branda et al., 2018;Jabbar et al., 2020;Morewedge et al., 2021). ...
Theoretical background: Analytical marketing is at the heart of scientific research because it plays an important role in building the competitiveness of enterprises and is an opportunity for them to grow.
Purpose of the article: The aim of the article is to present the results of a bibliometric analysis of the developing area of analytical marketing.
Research methods: For this purpose, specialist journals published between 1900 and 2021 were searched in the Web of Science database. The scientometric analyses carried out on their basis concern the number of publications, authorship and co-authorship, the number of citations, journals, thematic categories, institutions, countries and keywords. Over 200 publications cited 2,563 times were analyzed.
Main findings: The concept of analytical marketing was taken into account by over 400 authors, with Maria Petrescu authoring the highest number of publications, and Michel Wedel being the most significant author due to the number of citations. An important role, due to the number of publications in this area, is played by institutions based in the USA (over 50%), including the University of Nevada, Las Vegas (UNLV) and the Nevada System of Higher Education (NSHE). What is more, the conducted research emphasizes the importance of marketing analytics and presents benefits that stem from using it.
... In addition, as companies are increasingly investing resources in Big Data and social media without completely acknowledging the return on these investments, scholars should deepen this issue, investigating how to measure first, and then maximise the return on Big Data applied to CRM and SCRM investments. In this context, scholars might supplement the performance methods usually used in marketing with those frequently used in information system research to improve the assessment of these investments (Maklan et al., 2015). ...
Purpose
Due to the recent development of Big Data and artificial intelligence (AI) technology solutions in customer relationship management (CRM), this paper provides a systematic overview of the field, thus unveiling gaps and providing promising paths for future research.
Design/methodology/approach
A total of 212 peer-reviewed articles published between 1989 and 2020 were extracted from the Scopus database, and 2 bibliometric techniques were used: bibliographic coupling and keywords’ co-occurrence.
Findings
Outcomes of the bibliometric analysis enabled the authors to identify three main subfields of the AI literature within the CRM domain (Big Data and CRM as a database, AI and machine learning techniques applied to CRM activities and strategic management of AI–CRM integrations) and capture promising paths for future development for each of these subfields. This study also develops a three-step conceptual model for AI implementation in CRM, which can support, on one hand, scholars in further deepening the knowledge in this field and, on the other hand, managers in planning an appropriate and coherent strategy.
Originality/value
To the best of the authors’ knowledge, this study is the first to systematise and discuss the literature regarding the relationship between AI and CRM based on bibliometric analysis. Thus, both academics and practitioners can benefit from the study, as it unveils recent important directions in CRM management research and practices.
... Otro aspecto a considerar a la hora de decidir en la implementación de un sistema de Gestión de las relaciones con el cliente es el financiero. Maklan et al. (2015), examinaron cómo las inversiones en tecnologías de la información aplicadas al marketing traían beneficios económicos para las organizaciones. Encontraron, que las empresas invierten cada vez más en sistemas de información aplicadas al área de marketing como el big data, mobility y las redes sociales, sin embargo, a través de una revisión exhaustiva de literatura determinaron que la inversión realizada en tecnología o retorno de la inversión genera beneficios económicos visibles a largo plazo. ...
Hoy en día las empresas debido a la apertura de los mercados enfrentan un mayor nivel de competencia por lo cual es de suma importancia contar con estrategias para captar, retener y comprender mejor a los clientes con el objeto de brindar mejores productos y servicios que le permitan ser más competitiva. Así mismo, debido al gran volumen de clientes las compañías requieren de herramientas y estrategias para el análisis y gestión de los datos que les facilite la toma de mejores decisiones. Ante esta necesidad, se plantea el presente artículo cuyo objetivo es el de dar a conocer el concepto del sistema de Gestión de las relaciones con el cliente, haciendo énfasis en el uso de los sistemas de información inteligentes, así como las implicaciones éticas de la información recopilada de los clientes. Para esto, se realizó una revisión de literatura científica enfocada en el tema. Se determinó que el sistema permite organizar y analizar la información del cliente identificando sus necesidades y preferencias de forma automatizada, favoreciendo la toma de decisiones, incrementando las relaciones de lealtad con el cliente y generando ventajas competitivas sostenibles. De igual manera, se precisa la importancia de establecer prácticas éticas en el manejo de la información recolectada de los clientes lo cual se puede lograr con apego a las leyes de cada país o estableciendo códigos de ética en cada organización.
Objective-In light of the later headways in Huge Information and manufactured insights (AI) innovations inside the domain of buyer relationship taking care of, this record presents a comprehensive survey of the field. It points to distinguish existing holes and propose potential roads for future inquire about. Methodology-We conducted a thorough look of the Scopus database and recovered a add up to of 212 articles with evaluations from others disseminated between 1989 and 2020. Two bibliometric methods, bibliographic coupling and watchword co-occurrence examination, were utilized for our examination. Results-The discoveries from our bibliometric examination permitted us to portray three essential subfields inside the AI writing relating to Client Relationship Administration: (1) Huge Information and Client Relationship Administration as a database, (2) AI and machine learning methods connected to Client Relationship Administration forms, and (3) the key administration of AI-CLIENT RELATIONSHIP ADMINISTRATION integrative. For each of these subfields, we recognized promising bearings for future improvement. Also, this consider presents a three-step conceptual demonstrate for the execution of AI in CLIENT RELATIONSHIP ADMINISTRATION, which can serve as a important asset for both analysts looking for to dig more profound into this space and supervisors arranging cohesive techniques. Novelty/Significance-To the leading of our information, this ponder speaks to the primary orderly endeavour to synthesize and examine the writing on the collaboration between AI and CLIENT RELATIONSHIP ADMINISTRATION through the focal point of bibliometric investigation. As a result, both scholastic researchers and industry professionals stand to advantage from our discoveries, as they divulge later basic headings in CLIENT RELATIONSHIP ADMINISTRATION inquire about and hone.
There is no doubt that social media (SM) has changed the fundamental nature of customer-company interaction and communication. The extant literature on SM use is focused on the mechanics of SM use and the possible benefits that companies can achieve. The literature has also identified number of managerial challenges associated with SM use in companies. However, the literature is fragmented when it comes to the question as to how these benefits can be realized by companies. This study attempts to provide a comprehensive coverage of the SM use by the companies. This study also reviews various managerial challenges associated with SM data use and provides recommendations to deal with these challenges.
Nowadays, the digital technologies and information systems (i.e. cloud computing and Internet of Things) generated the vast data in terabytes to extract the knowledge for making a better decision by the end users. However, these massive data require a large effort of researchers at multiple levels to analyze for decision making. To find a better development, researchers concentrated on Big Data Analysis (BDA), but the traditional databases, data techniques and platforms suffers from storage, imbalance data, scalability, insufficient accuracy, slow responsiveness and scalability, which leads to very less efficiency in Big Data (BD) context. Therefore, the main objective of this research is to present a generalized view of complete BD system that consists of various stages and major components of every stage to process the BD. In specific, the data management process describes the NoSQL databases and different Parallel Distributed File Systems (PDFS) and then, the impact of challenges, analyzed for BD with recent developments provides a better understanding that how different tools and technologies apply to solve real-life applications.
Cross-sectional studies of attitude-behavior relationships are vulnerable to the inflation of correlations by common method variance (CMV). Here, a model is presented that allows partial correlation analysis to adjust the observed correlations for CMV contamination and determine if conclusions about the statistical and practical significance of a predictor have been influenced by the presence of CMV. This method also suggests procedures for designing questionnaires to increase the precision of this adjustment.
Surveys continue to highlight that most senior business executives are dissatisfied with the value they believe their organizations are deriving from investments in information technology. What is often forgotten is that IT in itself has no inherent value. This value must be unlocked, and only business executives and users can do this. While most IT investments are usually accompanied by a technology implementation plan, few organizations ever construct a plan focused on realizing the business benefits. This article explores how organizations can unlock business value from their IT investments by adopting a two-stage view of implementation. This model distinguishes between "problem-based" interventions and "innovation-based" interventions. Unlocking business value from IT investments is a journey not a destination and this journey requires careful planning.
Quick responses to environmental changes have become a vital success factor for today's companies. This study aims to identify the differential mechanisms that drive responsiveness to customers and responsiveness to competitors. In particular, the authors propose a conceptual framework that distinguishes between a cognitive and an affective organizational system as two important antecedents of organizational responsiveness. The results from a large-scale, cross-industry study show that the affective organizational system is more important in driving responsiveness to customers and that the cognitive organizational system is more important in driving responsiveness to competitors. Moreover, the relative importance of the cognitive system as a driver of responsiveness is greater in firms with a low market share and in markets with low entry barriers for new competitors.
Marketing managers are being required to demonstrate the profitability of their marketing actions down to the level of their individual customers and on an ongoing basis. At the same time, customers expect firms to increasingly customize their products and services to meet their demands. Firms still need to produce superior products, sell smarter, and understand the markets as a whole, but the ability of firms to orient themselves to interact successfully with their individual customers will differentiate them in the future. Advances in technology have resulted in increasing opportunities for interactions between firms and customers, between customers, and between firms. An interaction orientation reflects a firm's ability to interact with its individual customers and to take advantage of information obtained from them through successive interactions to achieve profitable customer relationships. First, the authors identify the components of interaction orientation: (1) customer concept, (2) interaction response capacity, (3) customer empowerment, and (4) customer value management. Second, they relate interaction orientation to both customer-level and aggregate-level performance measures. Third, they identify the antecedents of interaction orientation. Fourth, they examine the moderating effects of customer-initiated contacts and competitive intensity on the interaction orientation–performance linkage. The results are based on a survey of top marketing managers. The commonly held view that customer-based relational performance is related to customer-based profit performance is not supported. However, both customer-based relational performance and customer-based profit performance affect aggregate business-level performance positively. Interaction orientation is a phenomenon observed in both business-to-business and business-to-consumer firms. The extent of customer-initiated contacts moderates the interaction orientation–performance relationship.
The authors examine the construct validation results of 70 published data sets. The analysis shows that, on average, traits account for less than 50% of the variance in construct measures. These findings raise questions about the application of statistical techniques that assume minimal measurement error or do not properly model systematic measurement error.
The American Customer Satisfaction Index (ACSI) is a new type of market-based performance measure for firms, industries, economic sectors, and national economies. The authors discuss the nature and purpose of ACSI and explain the theory underlying the ACSI model, the nation-wide survey methodology used to collect the data, and the econometric approach employed to estimate the indices. They also illustrate the use of ACSI in conducting benchmarking studies, both cross-sectionally and over time. The authors find customer satisfaction to be greater for goods than for services and, in turn, greater for services than for government agencies, as well as find cause for concern in the observation that customer satisfaction in the United States is declining, primarily because of decreasing satisfaction with services. The authors estimate the model for the seven major economic sectors for which data are collected. Highlights of the findings include that (1) customization is more important than reliability in determining customer satisfaction, (2) customer expectations play a greater role in sectors in which variance in production and consumption is relatively low, and (3) customer satisfaction is more quality-driven than value- or price-driven. The authors conclude with a discussion of the implications of ACSI for public policymakers, managers, consumers, and marketing in general.
New organization forms, including strategic partnerships and networks, are replacing simple market-based transactions and traditional bureaucratic hierarchical organizations. The historical marketing management function, based on the microeconomic maximization paradigm, must be critically examined for its relevance to marketing theory and practice in the 1990s. A new conception of marketing will focus on managing strategic partnerships and positioning the firm between vendors and customers in the value chain with the aim of delivering superior value to customers. Customer relationships will be seen as the key strategic resource of the business.
The exchange concept is a key factor in understanding the expanding role of marketing.
The proposal that marketing is relevant to all organizations having customer groups was advanced in the January, 1969 issue of this journal. It is now stated that the original broadening proposal should be broadened still further to include the transactions between an organization and all of its publics. The author sees marketing as the disciplined task of creating and offering values to others for the purpose of achieving a desired response. The generic view of marketing is defined by a set of four axioms and leads to new marketing typologies and views of the tasks of marketing management.