Towards Innovation with Care
New Horizons in the Economics of Innovation series
Edited by Lars Fuglsang
Chapter 3: Customer Relationship Management (CRM) as Innovation: Taking Care of the Right Customers
Jan Mattsson Relationship marketing has become the dominant paradigm in marketing during recent decades (Sheth and Parvatiyar, 1995). Marketing will need to undergo great changes in order to ﬁnd its functional (Doyle, 1995) and ethical role (Mattsson and Rendtorﬀ, 2005) in the new millennium. Customer Relationship Management, or CRM, can be seen as a tangible response to the strategic challenges facing marketing (Mattsson et al., 2006). CRM is the idea of relationship marketing put into practical operation with reference to customers (Gummesson, 2004). Zeng et al. (2003) make a review of the key ideas and concepts in B2B and CRM literatures and distinguish between the two literatures, while underlining the importance of using strategies for integrating business processes which will beneﬁt involved commercial partners. However, it has been argued that CRM is more than a marketing process as it should be used as a strategic lever to support the company mission with the aim of becoming more customer-centric (Buttle, 2005). Recently, the idea of a strategic CRM (or Global CRM) has been proposed as encompassing the entire organization woven around the concept of customer value (Kumar and Reinartz, 2006). Jain and Singh (2002) underline that the use of such a kind of CRM necessitates a restructuring of the ﬁrm from being product-centric to becoming customer-centric. CRM success depends on applying a cross-functional, holistic, and customer-centric approach simultaneously (Bull, 2003) combining people, processes and technology with the aim of better understanding and care for customers (Chen and Popovich, 2003). However,...
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