When a firm implements analytical CRM, the value of a customer is assessed by profitability analysis. In a sense, a firm retains profitable customers but “fires” unprofitable ones. In this paper, we show that this typical customer selection strategy is not appropriate for a firm of goods and services that exhibit network externalities because of the strategic network value of unprofitable custo...

a r t i c l e i n f o Keywords: Customer relationship management IT alignment CRM strategy IT infrastructure Customer relationship management (CRM) is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. A CRM strategy involves the entire enterprise and is employed on an ongoing basis. Despite the fact that CRM...

Employee relationship management (ERM) constitutes an emerging trend of managing human resources by building and maintaining individualized and mutually valuable relationships with employees based on information technology. However, given the early and still emerging state, there is little knowledge and agreement regarding ERM. Hence, the current paper attempts to clarify the concept and derive...

Customer Relationship Management has been well discussed as a holis tic concept for the private sector to start, main tain and optimize relationships to make customers more loyal /profitable – in sum to improve the relationship with the consumers. Many companies have invested into the customer driven CRM concept but research indicates varying outcomes. Recent publ ications, mainly driven by the...

Organizations today have a diversity of applications available to support the management of customer relationships, namely electronic-customer relationship management (eCRM) applications. Despite the growing need of understanding eCRM in small and medium-sized enterprises (SMEs), eCRM research is largely focused on large organizations. Building on the theory of dynamic capabilities, this paper ...

With the rapid development of IT technology and fierce competition of market, the customer relationship management(CRM) has gained its importance in the market. Companies have attached importance to acquiring and retaining the most profitable customers. So calculating customer’s value is a significant segment for every effective CRM. Many researches have been performed to calculate customer’s v...

The paper uses data from the Swedish Customer Satisfaction Index together with performance data from competing industries to study the difference in logic in terms of customer satisfaction and loyalty between services and products. We find that for product firms loyalty can have a negative effect on company performance, while for service firms the effect is positive. The implication is that ser...