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The present article proposes that the variety of existing managerial practices collectively described as “customer relationship management” can be organized and coordinated into a logical sequence of goals and methods that is more effective than performing them in an uncoordinated fashion. The model proposes that managers have five distinct but interrelated goals: customer acquisition, customer retention, customer development, customer consultation, and customer conversion. Although each goal can be achieved using distinct and well-known marketing practices, the model integrates the practices in a temporal and logical order in which achieving one goal contributes to achieving other goals. Integrating the procedures and technologies used at each stage results is a synergistic effort that should benefit companies and can guide empirical research.
'16 lnternational Journal ofCustomerRelationshipMarketingandManagement, l(1),16-27,January-March2010
The Goals of Customer
Relationsh i p Management
Ronultl E. Goldsmith, l''lorittu Stute Unit,ersiO,, L/SA
t'onsullulion, ttrtl t'uslr.trncr tttuversion. ..lltlunrglt eutlt goul turt be uchievecl using distinc't antt vell-knr.nvn
nturlielirtg prttt'tite.s, tlrc nrulel inlegrutes tltt'prut'tit'es in u ten4xtrul antl logicttl ortler intvhich achieving
resrilts is trstnergistit cllirt tltut ,slnttld hertet'it t'ontptuies und cctn guide enpirical research.
Kt,t'tyorLls; ('R,ll, ( ttstontct',ltc1ui.sition, |,ngugentent, Lo1,ul1y
'flre concept ol'cLrstonrer rclationship nlanage-
mqnt (CRM) has stimulated a virriety of ideas
and recorrru.rendations fbr nrarketing theory
and practice.'['hese recornrnendations conre
li'orn both acadenrics and fiom consultants
(e.g., Cesvet et a1.,2009; Reichheld.200 | ), and
several conrpanies specialize in helping finns
incorporate these practices into their rnanage-
nrent strategies (e.g., Peppcr & Rogers, 1993.
1998). -I'hc practice ol'CltM uses a variety of
technolclgics and rnarragernent tools to accluire
and to retain custorncrs. 'l'he ultirnate goals are
to crcate long-tcrnr profitable relationsh ips with
thenr (S later, Molrr, & Sengupta. 2009). Despite
the breath and originality of the CRM concept,
I X)l : I 0.-10 I tt/icrmrn.2() I (X)90102
academic rnarketers have only recently devel-
oped organizing fiarneworks. As these ideas
emerge, however, it appears that there is a gap
in the literature that can hinder their effective
application as welI as delay research programs.
The present article proposes that many ofthese
ideas should be combined and related to a set of
coherentprr.rr imal goul.s for CRM arranged in a
Iogical. ternporal sequence tlrat increases their
overaII eliectiveness, gu ides empirical research,
and promotes efl'ective teaching.
Iivery business desires to create profitable rela-
tionships with customers. In fact, some rnight
argue that one ofthe most valuable assets a flrrn
has is its customers:and it is well established that
('0p\frghl (. lr:)10. I(;l
is prolrrtritcd
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18 Internattonal Journal of Customer Relationship Marketlng and Managemenl 1 (1), 16-27, January-March 201 0
ln kecpirrg witli standard presetttatiotrs ol'CRM'
the propJsect rnodcl argues that the tirst goal
of CRM is custttner ttctlttisilion that has the
principal ainl of attractirlg ctlstolllers to tne
oll'ering. 'l'he traditiorral tools of lntegraled
M arkeing Cotrllnull icatiorls (personerl se I I itt g'
advertising, pt'onrotion. etc'); price discounts'
give-aways' and rebates; and direct rnarkettng
Ire tlre chief means of accorrlplishing this goal
(Slater et al.. 2009)' ln the proposed rnodel'
however. the activ ities o1-each subsecluent stage
also cotttribtrtc to ctlstolller accluisition' One of
ttr. f.y eleuletlts of CRM is the acquisition of
iutclruratiotr ll'orn retained. ex isting custonlers'
Matragers can seglllcllt the rnat'ket into dif'-
t'erertt'groups of cttstonlers based on proliles
ol existing ctlstonrers rankecl by profitability'
Managers can use tlris infbrnlation to target
tutuLe high valtte ctlstomers ( l{igby' Reichheld'
& Schelier. lt)01 t.
ln acldition, llrrlts can prol.note stlccessltll
(lrigh) rates of cttstotner retention to persLtade
people to becotrte customers' 'fhese metrtcs
rrright be irllporlartt clements ol- persuastve
cor-nmunications and contribute to building the
reputation of the firm' Customer development
u.iiuiti.t (up-selling and cross-selling) can
irrclucle new customers' For exarnple' a banks
ofl'erto add a savings accountto anewly opened
checking account could include children's sav-
ings accounts, or a cruise line could offer to
uigrade a passerlgers ifthey persuade friends
uni tu*ityio.ruisewith them' Consultingw.ith
custotlers also contributes to customer acqulsl-
tion. When non-cusromers read and participate
in online conversations between the firm and
its custonters, they can becone customers oe-
cause of what they hear' ln addition' in today's
linked and searchable environment' the public
clialogue between firrns and their custotners
acts iiself as an advertising and recomrnenda-
tion plattbrm that will attract customers' Tltis
might easily occur if firm consultation efforts
attiact publicity. F'inally, the principal objective
of the ilnal element of the proposed model is to
convert customers into advocates forthe brand
whereby they actively promote itthrough word-
tuble I. ,'ln tr,'ert'icvt' ttf the ytropt'tsed CRLI tttodel
During ConsumPtion Atler
('0tlsttlD Pti0n Clustone r
Slage in ('ll\l (lust0mtr
( lustonter
lletention (lustomor
DeveloPmenf Consrrltation
Additional sales
to satislled ctts-
Scck inPttt tronr
custtltners for
new products
customers to
beconte brat.rd
f:ranlPlc SLrpcr llon I r\d-
Verusl llg Sat islil0llt)n
r.rith the Prod-
tJp sell and cross
scll. doveloP Per-
sonalized nerv
Ciet input liorn
cuslolners lo
improvc the re-
Facililale cus-
tomer eflbrts ttr
\\ lll new cus-
Manage nlcnt Ke c(n11-
l arget thc
Segnrcllt ctls-
lorncrs lirr dil'-
lercnt stralc-
What additional
products alld scr-
l ices would nrcct
the rteccls ofthese
custonrers l
What is thc best
rvay to allolv
custollrers to
co-produce this
What woLtld en-
couragc and as-
sist this custom-
er in beoomtng
an advocatc'l
lLcscarclt l{ecotn-
nrendation Seglllclltatlon
artd l)ositioning Wh1 do these
srvitch brarlds'i
Wl.rett does this
el'fort becotne
When does this
cflbrt beconle
an invasion ol
When does this
become exPlot-
tation ofcustonl-
Social I)olicl Cott-
ccnl \\'hcn is thts
lilrt bcctttnc
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20 lnternational Journal of Customer Relationship Marketing and Management, 1(1),16-27, January-March 2010
business e
strategy in
the term "
offline ant
Internet (l
tions can
sations to
and their
online to l
pensive t
go beYo
create d,
2008). I
such as
enton (l
and thz
and bui
tivelY r
firm as
the val
efits th
ship. tlut this contponent of CRM has several
dir.nerrsions that should be discrrssed.
Perhaps the sirnplest way in rvhich nlan-
gers use attd conceptualize CRM is the idea
thzrt corlpanies can collect inlbrnlatiorr about
existing custolners and tnine this inforrtlation
to rnarket ntore ef'tectively to them. ln a sense,
this is the tt.todetn technological nlanit'esta-
tion of tlre old practices ol'tlying to trp-sell
(persuadirrr.:. cttstotllcrs to ptlte ltase upgrades-
more expensive versions. or add-ons to their
initial purchase) and to cross-sell (selling ad-
ditional or other products). At the heart of this
strategy are sophisticated computer programs
and databases that collect ir.rlbrnration about
cuslomers and tlreir purchases and then use this
irr l'orrr rat iuu to cnc()ttrflSc c tlstolncrq to pLtrchase
rurore lt'ecluently or to lirnit their purchases to
the flrm's brands. These practices depend on
retainirrg custoltters to inct'ease their lil-etirne
value b1' rnaking thcnr rrrore prolitable to serve-
1-his aspectof'CRM trsesthe irnpoftantconcepts
of personalization and relationship building to
create bonds with ct"tstottters.
ln addition. the practice of developing
custolners can incorporate using the inforlna-
tion to predict what they w'ill do. Specialized
ctlnsLrltirtg llrrrrs uttd solirn are prtrglatns crist
to nrine custolxer infbrniation and to predict
what tlrey will buy irr the future (1'he Predictive
Ilnterpfise, 200,7).'fhese systems work b1' ssl-
lecting inforntation on ctlstonlefs and on their
purchases. The flrnt collects intbrnration at all
custonrer touchpoints. lt is fi'd into databases
and analyzed by algorithrtts designed to answer
spec ilic questions, such as "rvhat product is this
custonrer rnost likely to brty trext," "hor.v likely
is this custorner to def'ect," and "what oflcrings
or promotions is this customer rnost likely to
lcsputtd to'.'" Salespcr\ons. cLlstollter scrvice
representatives. and autotlrated d irect rrarketing
pfograms use tlte products of these algorithms
wherr they interact rv ith custotners to l-lp-sell and
cross-sell, solvc problents. and retllind/suggest
actions fbr thc custolners to take. Cotlrpanies
also can make cttstortrer-specific new product
oflers (ln1br. 2007). Ihe results of applying
these procedures catt inclr-rde enhanced ROI.
irl proved custolner satisfaction, strengthened
loyalty, and valuable insights from customer
lbr new products.
A further dimension of the activity tertned
"deve loping customers" is described by the ternl
"predictive analytics." ln the CRM context, this
consists of using statistical and data mining
techniques to predict what customers are go-
ing to do (Turning Customer Interactions into
Money, 2008). These programs can identify
which customers are about to def-ect and sug-
gest ways to discourage them; explain "why"
customers behave as they do, so that the firm
can deepen its relationship through relevant
responses; and they protrote personalization.
Firrns can segment their customers into smaller
arrd smaller groups so that they can develop
rnarketing strategies for thern. The result is
that flrrns can increase their ROI for individual
custonlers. increase customer satisfaction, and
encourage positive word-of-ntouth (WOM) by
these custotnels. The strategies of customer
development thus lead to the next goal in the
strategy. "consulting with customers."
Twenty-filst century customers are more
empowered than in the past (The Ec<,tnomist,
2005). They are less tolerant than ever of
one-directional prorrtotion models, such as
traditional advertising, that relegate them to
the role of "receivers" of marketers'informa-
tion. They want to talk back to firms, to thank,
complain, and opine (Pitt et al., 2002)' They
cerlainly like to discuss products and brands
with other consumers using tlre many means
rnade available by social media (e.g., e-mail,
social networks, virtual worlds, blogs, etc.).
'fhey seek and give opinions, advice, and ideas.
Their activity ranges fiom consumer created
content, such as ads, to formally reviewing
products and advising other consumers ofthe
uses, strengths, weaknesses, etc. of brands.
lndeed, such customer created content can
have a big impact on acquiring customers
psltqltlold sl
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22 lnternational Joufnal of customer Relationship Marketing and Managemenl' 1(1\' 16-27' January-March 2010
keting to tlie sltccess ot'the brand (LJsing Social
M ed ia to Deepen Yo ur Ci ustolller Re lat i on sh i ps'
200ti;. Ccrtitinly thc credettce gir e tr to tlte ttew
rrretric. Nct l)r'ottlotcr Scole- wlr ich sutntnarizcs
social intluence online (Crearner2006a, 2006b)
is te stirnony' that the value of WOM rernains
as high as ever. 'l'hus, the rninirnal goal olthis
stage of CRM is to encourage custonlers to
spread positive WOM. Consulting with them
is a key success lactor tbr tltis.
Be1 orttl positir c WOM- ltorvcvet" tlte new
goal is to rvilr custtlurer advocates' The obiect
is to cncottruge a lo1 al custolller lo becottte an
uctual salcspcrson ( Klaasserr. lU0b)' Occasiort-
ally," custonlers 1ot'ttr relatiorrships with brands
that extencl beyond satisfaction and loyalty to
becotle advocates 1br tlre brand' ln the rvords of
Rozrrrtski et al. ( l999t"the) can becotttc"brand
zealots." -l'hese cotrsurtrers nlanif-est so llluch
enthusiastrt tbr the lrrand that they actively pro-
nrote it artd cven try to sell itto otherconsumers'
thus acting likc an unpaid sales fbrce' Frotl one
perspective. this phenornenoll can be viewed as
an eflbrt by consuuters to give the brand a unique perhaps not intellded by the tirrn' but
which has itlportance to their lives (see Allen
ct ll.. lU0u; Wulkcr- 1008). Scclr liortt attotlter
perspective, these cotlstttrlers ntight sirnply
iite the brand so rntrch they are conlpelled to
shale their erlthusiastn by telling others about it
(McConnell & Huba. 2006)' Both phenomena
pr:oduce nlotivated brand prontoters'
In the context ofthe ploposals pfesented
here, the irllplication is that loyal ctlstomers
can be enlistecl as pfoponents ofthe brand so
thar they can become l iteral spokespersons and
salespersons. l'hrts' cttstotlrers can be cortverlatl
to be partners r'vith the tlnn to sell the brand
Flow can tlre tlnn clo this'l One of the nost
ercit ing iclcas clraructerizirlg rrtodcrtt rtturketing
thought is the proposal that consumers can De
co-creators ofthe product or service (Vargcl &
I usclt. loU-l). {A t'ecent proposal. ftlrexarttplc'
has suggested that Detroit sltould ask customers
to help design cars (Jarvis. 2009))' 'fhe tuore
consurners t-ecl they have contributed to tlre
fbnn and irnage of the brand, the nrore likely
tlrcl will $alll to pt'otttotc it'
The present proposal is that if (at least)
sone consumers are going to take the brand
as intencled by the marketer and infuse it with
unique nreaning. rnaking it an irnportant part of
their lives. the marketers should aide and abet
llreru in any eflbrrs they rnake to promote the
brand to others (Cesvet et al., 2009)' Compa-
nies can even attelxpt actively to f'acilitate this
phenomenon. When most efl-ective, this leads
companies Io cort\;ert customers into brand
enthusiasts and customer evangelists who
u ill volunteer to help the comparry arld most
irnportantly, proselytize other consutrers to
becotne customers as well(McConnell& Huba,
2003).l'his strategy builds on the previous step
in tlre rnoticl in which llrlns rnake extensive
eflbrts to consult with customers' lt takes the
information actively derived from cttstomers
ancl uses it in ways that inspire customers to
see the brand as their own. A recent study of
branding (Golclsmith et al.' 2009) fbund that
tlrc brand perceprion having thc strongest and
most consistent relationship with loyalty to a
brand was how rr'levunt tlte consutner saw the
brand, how well it rnatched with their values and
lif'estyles. T'he flnal step in the proposed model
says that lnanagers can learn from custot.lrers
how their brands can be relevant, actively let
custorners participate in creating that relevance,
and then provide the means fbr customers to
prolnote the brand to others'
Many cliscussions ofCRM explain that customer
accluisition and retention should be treated as
investment decisions so that funds are budgeted
fbr each task in ways to nlaximize long-term
profit (S later et al., 2009). The same recolnmen-
dation applies to the three additional elements
of the CRM rnodel proposed here' Each stage
requires its own strategy-specific technology,
labor, and managerial time.'I'he funds budgeted
lor each stage should also reflect a ROI perspec-
tive. However, this rnight be more difficultto do
given the less-tarrgible resr-rlts ofthe consulting,
is pr ohibited.
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24 |nternational Journal of CUStomer Re|ationship Marketing and Management, l(1)' 16-27 ' January.March 2010
sLlccessfillly. Much of'this research concel-ns relationshipstocomtnercial ends?Doconsum-
need to study irr order to inrplenrent the model. past dec;des., or is it just the illusion of power
rn adcrition, the rrodel "irJ urroti.r topic for creat"d by clever cRM strategies?
acaclernic research that are l.nol-e general ln
nu,ur.. Each stage ot'thc nrt'rdel strggests dif'- DISCUSSION AND
f-erent research topics as well as contributin* CiJNlCiUSlOtt
to research needs that deal with irnplerrlenting
the entire strategy' Althotrgh much of the discussion of cRM has
-lo suggest a f'ew o1'tlre research qr"restions treatecllt as a set of techrliques' as a philoso.-
inrplied by:ihe,noclel: ( I ) Cornpared with other ;;;, ". as a strategy, tltis piece-meal approach
marketingstrategieshowell-ectiveareefibrtsto iro, t"O to it beilg viewed as a catch-all term
use custol.nct'retention, development. consult- fbr winnilg customers. Effotts to systematlze
ing, and conversiotl irl accluiring cttstonlers lor the field and to impose a coherent strateglc
llims?Dotheseactivitiesdifl'eracrossdif'ferent fiamework have succeeded in bring a mea-
typesofconrpaniesandirrdustries'?(2)Although sure of order to the prevailing chaos (Payne
..,rto,.,.r., loy:ultyisalreadyaninrurensereseatch & Frow,2005). lt is apparent, however, that
area, one i,r1poitant issue raised by the modc-l is most managers think CRM consists of only
thee1l'eclivenessol'personalizationinretainirlg two elernents characterized by the goals of
custolters. (3) Horv do custottlers react to eT- customer acquisition and custotner retentlon'
lbrts to up-sell ancl closs-sell thern? What are The proposed model adds other distinct strate-
tlre rnost etl'ective nreans that tlrt.ns can use to ni. ", clesigned to accomplish proximal
do this successfully'? Whart are the elements loals to make CRM into an integrated strategy'
of "personalizatiot'r" that ctlstonlers llnd lnost -B..uur. each of these elements already exists
appealing? How ef-fective is personalization in the fbrm of management recorilnendations
in'pr.u.i,i,rg brancl switching? (4)'I'he idea unJt..t1notogy,theydonothavetobeinvented,
of consulting with custonters to give thetn a onty lnt.grute6 into a consistent strategy. The
role i1 tle ura1ageurent of the brand is qLrite fbr management lies in adopting
new. An inlportant topic tbr research is how an oveiall custonter-centric perspective and
lo,.,r,',.,.r"r, react to this new strategy. Florv does rnelding the technologies together to optimize
it change theil expectatiorls and reclttirerlents the resu"lts of executing this system' The model
fbr othJr products? What are the urost efl'ective proposed in this arricle attempts to provide a
ways in ivhich they can participate? (5) What guide fbr this work' The model proposes that
psy;chologicalmechanisrnsstintulatecustorners iather thal launching separate stl'ategies to
ioi".onr" br.ancl advocates'? What are the ll1ost achieve specific relationship goals, the_strate-
ef-fectiveslrategiesfir|li|rnstotlseinp|ornoting gi.r rl.loria be sequenced into a logical order'
tSis new type of consurner behavior'l in" model further pfoposes that each stage
Irinaliy, tiorn the customer's perspective, reinfbrces the previous one and leads naturally
the niodel calls tbr aciditional researclt to utr- to the subsequent one. ln this way, the firm
derstand how custortrers react to such lnallage- *ill u."o,oplish its distal goals of establishing
nlent strategies. How rlo these CRM activities lons-ter'r relatiouships with valued custonlers
i'flueuce consunrer decisions? Do they really usiig technology guided by a customer-centric
build relationships? Do cornpanies even ktlow n-,u',ig"r.n, [t.ritosop'ty that perm€ates _the
what.'relatior.rships"arc?Arethereanynegative firnr io pr.ovide personalized ofTerings. The
conseqsences characterized as "social policy" technology of CRM shoLrld be consistent and
concernr'? Are the CIRM eflbrts <l1'the fiflll re- in,.gro,J,o facilitate accornplishing the goals
ally invasions of privacy or the unscrupu.lous u,.i.f, stage of the process' The model further
nranipulation of hutrlan tetrdencies to fbrm
into s
in th
is prohrbrted
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... Defined as a combination of processes, people, and technology that seeks to understand the customers of a company by Vaish, Vaish, Vaisha, & Bhawal (2016), customer relationship management (CRM) strategies are beneficial for the attainment, development, and maintenance of relationships with customers. Additionally, for a successful CRM process to be achieved, Goldsmith (2010) suggests that CRM consists of "five inter-linked specific proximate goals that coordinate specific strategic initiatives" that correspond with a categorization of three stages, namely, pre-consumption, consumption, and post-consumption. The goals are "acquire, retain, develop, consult, and convert customers" and should not be seen as separate stages but rather as a process whereby the next stage builds on the preceding stage. ...
... The goals are "acquire, retain, develop, consult, and convert customers" and should not be seen as separate stages but rather as a process whereby the next stage builds on the preceding stage. In the following section, a brief explanation of the goals of CRM as postulated by Goldsmith (2010) is presented. ...
... As the first goal of CRM, according to Goldsmith (2010), acquisition refers to efforts by a firm geared towards the attraction of customers to an offering. They may include direct marketing, integrated marketing communications, and various pricing strategies. ...
Full-text available
Empirical studies of policy implementation have received committed attention since the 1970s. Mendes and Aguiar (2017) observed that Wildavsky and Pressman (1973) brought the issue of policy implementation to the forefront and ignited the hot discourse among social scientists since the 1970s. The overarching aim of policy implementation research in the 1970s, according to Mendes and Aguiar (2017), was to critically examine policy implementation theory and find a concrete one. Such implementation theories, including incrementalism, institutionalism, street-level bureaucracy and many others, apply to various policy types, one of which is public sector health policy. Primarily, public health policy is formulated by government or a governmental agency to address health-related problems that affect society (Simon, 2010). For example, high costs for healthcare services can impede access to care and be attended by preventable deaths, especially deaths due to self-medication, and this can ignite the formulation of public policy (Nyonator & Kutzin, 1999; Badasu, 2004; Agyepong, 1999). Some scholars (Mendes & Aguiar, 2017; Ajulor, 2018) have opined that different policy actors need to be involved in health policy-making and implementation in order to achieve the policy objectives. As such, the health policy of a country emerges as a result of divergent views and conflicts involving various interest groups that make demands. In Africa, however, most public health policies are not well thought through by the various policy actors because the policies originate from political party manifestoes meant for winning an election. In Kenya and Ghana, for example, decentralization and national health insurance policies emanated from political party manifestoes. Alfond (1975) propounded structural interest in healthcare theory and identified three (3) main categories of participants in public health policy-making in order to analyse the extent to which their respective interests and influences change with the passage of time. These participant categories are: i Dominant Structural Interests: The dominant structural interests are those of the medical profession due to the exclusive and monopolistic nature of the profession. In view of the special knowledge and clinical autonomy doctors have, society depends on them to be healthy and governments would find it extremely difficult to implement public health policies without the involvement of doctors (Ackon, 2003). ii Repressed Interests: The interests of the community. More often than not, the interest groups’ access to healthcare is restricted. The interest groups share common interests “in maximizing the responsiveness of health professionals and organizations to their concerns for accessible high quality healthcare” (Alfond, 1975:192). iii Challenging Interests: These are policy-makers, directors and hospital administrators who challenge the dominance of doctors within healthcare institutions. Even though the doctors may be free to diagnose diseases and prescribe relevant medicines, the types and number of cases they treat may be determined by the hospital management. It is obvious from the foregoing that Alfond’s theory of structural interests understandably illustrates the key actors or interest groups in public health policy-making and how these actors influence the health policies of a country. However, if not modified, Alfond’s theory would be difficult to apply in most developing countries in Africa as the economic and political climate of the USA (a developed country) where Alfond developed the theory is different from what exists in developing countries. Quite apart from this the public health sector of most developing countries in Africa is led by doctors who are active in the policy arena so it is impossible to challenge their dominance. Contrary to Alfond’s classification, Okoro (2016) opined that there are five (5) categories of policy actors, namely political actors (elected representatives), bureaucratic actors (public administrators), special interests (individuals or organizations in specific areas), general interests (people who represent other interests not related to the policy) and experts (people who have knowledge and experience in the area). The social problem that a public policy is meant to address would remain unresolved if the policy created as an antidote for the problem was inappropriately implemented or poorly managed to achieve the desired results. Public policy implementation basically involves translating of a formulated and adopted policy into reality by providing authorized operational procedures and resources. This is done through allocation of the varied resources, such as human, material, machine and financial resources, necessary in carrying out the activities earmarked under the policy (Ajulor, 2018).It is important for public sector healthcare managers and health policy students to clearly understand the procedures involved in health policy implementation. This chapter therefore aims at providing a practical understanding of various aspects of health policy.
... Effectiveness of social CRM can be understood with reference to its goals. Customer acquisition, retention, and development are some goals of CRM (Goldsmith, 2010), which means that an effective social CRM should incorporate such goals. 2018), involvement in new product design, tone, and role in promoting corporate image (Orenga-Roglá and Chalmeta, 2016). ...
... Customer-company relationship can be developed through making customer shopping experience a more customized process, predicting customer purchase behavior, and evaluating customers' economic status (Chen, 2003). According to Goldsmith (2010), customer development is just one goal of CRM and can be attained through providing satisfied customers with additional new customized products or service and searching for new productsand services to come across with their needs and wants. ...
... Actually, these unique direct findings elucidate that social CRM can be implemented not only to achieve shortterm outcomes such as attracting customers, building and managing customer relationship to enhance performance outcomes like customer satisfaction(Orenga-Roglá and Chalmeta, 2016, Aldaihani and Ali, 2018), customer engagement (Greenberg, 2004), customer loyalty (Hidayanti et al., 2018) and customer retention (Diffley et al., 2018), customer involvement (Cheng and Shiu, 2019), customer empowerment (Almunawar and Anshari, 2014, Aldaihani and Ali, 2018), customer profitability (Kamboj et al., 2018), but also to achieve long-term outcomes such as customer development (Goldsmith, 2010). ...
Full-text available
This study explores the mediating role of social CRM in the effect of customer attractiveness and innovativeness on customer development. A descriptive-analytical design method, in which data were collected by a survey-based questionnaire and analyzed using structural equation modeling, was adopted. A sample of 400 participants working at banks in Kuwait was selected. A total of 373 questionnaires were used for data analysis purpose. The study found that Customer attractiveness and innovativeness are prerequisites of social CRM effectiveness, upon which companies depend to develop values provided to attractive and innovative customers. This study calls companies to segment their customers based on their attractiveness and innovations in order to keep their customers.
... Defined as, a combination of processes, people and technology that seeks to understand the customers of a company by Vaish, Vaish, Vaisha, & Bhawal (2016), customer relationship management (CRM) strategies are beneficial for the attainment, development, and maintenance of relationships with customers. Additionally, for a successful CRM process to be achieved, Goldsmith (2010) suggests that CRM consists of 'five inter-linked specific proximate goals that coordinate specific strategic initiatives' that correspond with a categorization of three stages namely, pre-consumption, consumption and post-consumption. ...
... The goals are 'acquire, retain, develop, consult and convert customers' and should not be seen as separate stages but rather, a process whereby the next stage builds on the preceeding stage. In the following section, a brief explanation of the goals of CRM as postulated by Goldsmith (2010) are presented: ...
... As the first goal of CRM, according to Goldsmith (2010), acquisition refers to efforts by a firm geared towards the attraction of customers to an offering. It may include direct marketing, integrated marketing communications, and various pricing strategies. ...
Full-text available
This chapter deepens our understanding of customer relationship management techniques and practices in healthcare, with particular interest in outlining strategies to be adopted by healthcare providers to enhance customer participation and improve customer satisfaction, experience and loyalty. The chapter brings to light the changing roles of the healthcare customer and discusses how care should be delivered to promote customer loyalty. We argue that healthcare systems should consider and recognize the co-creative role of the customer, which should be promoted through patient empowerment programmes.
... Müşteri kazanma veya müşteri edinme müşteri tabanı oluşturmanın ilk adımıdır. Goldsmith (2010)'e göre MİY'in ilk hedefi olan müşteri kazanma, bir firmanın müşterilerini bir teklife çekmeye yönelik çabalarını ifade eder. Doğrudan pazarlama, bütünleşik pazarlama iletişimi ve çeşitli fiyatlandırma stratejilerini içerebilirler. ...
... Bazı durumlarda, firma bu sadık tüketicileri firmayla çalışacak ve diğerlerini tüketici olmaya ikna edecek marka meraklılarına bile dönüştürebilir. Bu kişilere danışarak firma-lar, markalarının müşterilerle nasıl alakalı olabileceğini öğrenebilir ve ardından bu müşterilerin bu alakayı yaratmaya aktif olarak katılabilecekleri ve markayı başkalarına tanıtmalarını sağlayan bir platform oluşturabilir (Goldsmith, 2010 Odabaşı (2009) ...
... These acts will yield more sales from product and service and this will increase the market growth and market share of the company. Furthermore, the central database within CRM it is available for all the customers in the company which they can access may type of company products and service and the information of these products and services can be found easily and everybody will be more aware of firm's product and service and which type is more suitable to them that can meet their expectations and needs (Andajani, 2015;Goldsmith, 2010) ...
Full-text available
Companies will survive by exploiting knowledge resources to maintain customer relationships more efficiently and effectively, as well as enhance their service quality. CRM is one of the successful management and marketing strategies that help companies increase their customer satisfaction, loyalty and retention to build and manage long-term relationships. Hence, the purpose of this research project is to measure the effect of customer relationship management and its effectiveness on consumer behavior. The concerning factors in this project that will influence the behavior of customers are sales, technology, customer services and customer satisfaction. Besides, these factors are the link between CRM and consumer behavior to understand the behavior in the retail industry specifically TESCO Company in Nilai and how they will be influenced by these factors also how it can affect the overall experience for TESCO and its customers. Moreover, when a customer has an enjoyable experience, this service experience will transform into a new service expectation, and so the next experience will be compared to the previous one. Thus, companies should meet the demands and expectations of customers to provide satisfying services and enhance service quality.
... Moreover, as the technologies and philosophy of customer relationship management have evolved, it has become clear that an integrated marketing plan and program should contain the systematic application of CRM across the lifetime of the relationship between the firm and its customers. Goldsmith (2010) argues that this application results in a coordinated model of the goals of CRM: customer acquisition, customer retention, customer development, customer consultation, and customer conversion. His model suggests that the effective use of social and mobile provides a means to create an "ecosystem of value"; connecting with customers in ways they increasingly want to connect. ...
... E-business has become a core theme at the heart of business strategy (Chang and Graham, 2012). The implementation of their e-business application also can benefit from experience acquired from their KM practices (Habul et al. 2012). ...
The basic objective of the paper is to reconcile the literature on knowledge management and supply Chain management in organizations. The paper build strategy formulation, the inputs to strategy formulation process are the results of evaluating e-business technology, the business environment, plus knowledge management and Supply-Chain management to dig out the important relationships and flows of activities. Theoretical relationships are enriched by the conclusions drawn from literature review. It includes Supply-Chain management and Knowledge management. By studying conceptual studies, we find that different components of Knowledge Management as Knowledge activities, Knowledge types, transformation of knowledge and technology have a significant positive effect in bringing strategies through transformation of knowledge into knowledge assets in organizations. The strategy diagram divides implementation into the technical and the business aspects.
Full-text available
Relationship Marketing merupakan suatu cara untuk mencipatakan suatu hubungan jangka panjang dengan pelanggan. Disektor pariwisata dan perhotelan, relationshop marketing sangat dibutuhkan sebagi bentuk keunggulan kompetitif bagi para pengusaha dan perhotelan sehingga membuat consumen akan belanja atau datang kembali secara berulang-ulang. Penelitian ini menggunakan pendekatan kualtatif dengan metode deskriptif dalam menguraikan data-data secara mendalam dan menyeluruh. Hasil penelitian menunjukkan bahwa relationship marketingtdan Customer Relationship Mnanagement merupakan dua poin utama yang penting dalam manajemen pemasaran yang harus dipunyai pada industri pariwisata dan perhotelan sebagai keunggulan kompetitif dan yang membedakan dari competitor lain sehingga dapat membuat pelanggan akan membeli kembali produk yang ditawarkan secara berulang.
This book responds to calls for quality healthcare service management practices or processes from developing economy perspectives. Focusing primarily on African and other developing economy contexts, this book covers eight thematic areas: strategy in healthcare; marketing imperatives in healthcare management; product and pricing management in healthcare; distribution and marketing communications in healthcare; managing people in healthcare; physical evidence and service quality management in healthcare; process management in healthcare; and technology in healthcare.
Full-text available
Customer relationship management (CRM) has gained extreme popularity in the last 20 years. It refers to a business strategy that aims to win, grow and keep the right customers. CRM systems are usually designed to collect information on customers from different channels, such as: companies’ websites, phones, mail, marketing materials, social media, etc. There are those on both sides of the fence who argue for and against CRM, but the research constantly shows that a properly implemented, company-wide CRM initiative can save company’s money, increase revenue, and grow customer loyalty. The aim of this research is to measure customer relationship management awareness among managers and employees in companies in Federation of Bosnia and Herzegovina (FB&H). The specific objectives of this research are to explore how present the CRM concept is in Bosnia and Herzegovina, to assess the level of use of the customer relationship tools and software in businesses in FB&H (CRM tools), to examine surveyed managers’ and employees’ readiness to implement new CRM tools, and to explore whether there is any significant difference in its usage when it comes to different regions of Bosnia and Herzegovina. So far, only three papers on the use of CRM systems in Bosnia and Herzegovina were published, leaving this field unknown and fertile ground for further research.
Conference Paper
Full-text available
Three hundred twenty-two U.S. consumers participated in a telephone interview devoted to purchase and use of grocery store products. They reported how committed they were to seven brands of single serving frozen dinners as well as their perceptions of these brands' familiarity, uniqueness, relevance, quality, trust, and respect for the company. All six brand perceptions were positively related to brand commitment and three of them, uniqueness, quality, and particularly relevance, were consistently important.
Full-text available
This definitive textbook explains what CRM is, the benefits it delivers, the contexts in which it is used, how it can be implemented and how CRM technologies can be deployed to support customer management strategies and objectives. It also looks comprehensively at how CRM can be used throughout the customer life-cycle stages of customer acquisition, retention and development and how the management disciplines- marketing, sales, IT, change management, human resource, customer service, accounting, and strategic management are implicated in this. This completely revised edition also includes: A Tutor Resource pack available to instructors who adopt this text. Case examples illustrating CRM in practice. Screenshots of CRM software applications and reviews of technology applications deployed in marketing, sales and customer service. Student readers will enjoy the logical structure, easy accessibility and case illustrations. Managers will appreciate the book's freedom from CRM vendor and consultant bias and the independent guidance it provides to those involved in CRM programs and system implementations. This second edition has been completely revised and updated with eight new chapters. © 2009, Francis Buttle. Published by Elsevier Ltd. All rights reserved.
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Discusses the nature and sometimes negative consequences of the dominating marketing paradigm of today, marketing mix management, and furthermore discusses how modern research into, for example, industrial marketing and services marketing as well as customer relationship economics shows that another approach to marketing is required. This development is supported by evolving trends in business, such as strategic partnerships, alliances and networks. Suggests relationship marketing, based on relationship building and management, as one emerging new marketing paradigm of the future. Concludes that the simplicity of the marketing mix paradigm, with its Four P model, has become a strait-jacket, fostering toolbox thinking rather than an awareness that marketing is a multi-faceted social process, and notes that marketing theory and customers are the victims of today’s mainstream marketing thinking.
A groundbreaking study of the customer's role in new production development. 'Customers have become a critical innovation partner for companies in many industries. At the same time, new information technologies have made such collaborative innovation with customers more feasible and cost-effective. Prandelli, Sawhney, and Verona's book resonates this important theme and contributes to our understanding of the associated management concepts and practices. Definitely a valuable book - for both academic researchers as well as practitioners!'. © Emanuela Prandelli, Mohanbir Sawhney and Gianmario Verona 2008. All rights reserved.
Corporate executives struggle to harness the power of social technologies. Twitter, Facebook, blogs, YouTube are where customers discuss products and companies, write their own news, and find their own deals but how do you integrate these activities into your broader marketing efforts? It's an unstoppable groundswell that affects every industry yet it's still utterly foreign to most companies running things now. When consumers you've never met are rating your company's products in public forums with which you have no experience or influence, your company is vulnerable. In "Groundswell", Josh Bernoff and Charlene Li explain how to turn this threat into an opportunity. In this updated and expanded edition of "Groundswell", featuring an all new introduction and chapters on Twitter and social media integration, you'll learn to: Evaluate new social technologies as they emerge; Determine how different groups of consumers are participating in social technology arenas; Apply a four-step process for formulating your future strategy; and, Build social technologies into your business. "Groundswell" is required reading for executives seeking to protect and strengthen their company's public image.
Consumer brand companies need skills new management skills, and brand managers must understand outline behavior if they wish to develop strong, sustainable, and beneficial online communities around their brands.