Customer relationship management processes: How faithful are business-to-business firms to customer profitability?

Devon Johnson, Bruce H. Clark, Gloria Barczak

Research output: Contribution to journalArticle

16 Citations (Scopus)

Abstract

Marketing academicians and practitioners have over the past decade advocated the implementation of customer equity principles within firms. This article draws on adaptive structuration theory to frame the faithfulness of firms to acquiring and maintaining customers according to their profit potential. Using survey data from 158 business units engaged in business-to-business sales, this article examines the motivational effects of market growth rate and customization requirements, and the technology and information integration capabilities of the firm as determinants of firm adherence to treating customers according to their profitability. The study finds that firms are better at maintaining customers according to their profit potential than acquiring customers according to their profit potential. Further, maintenance faithfulness appears to have more ultimate impact on firm performance. The study suggests that pursuing customer profitability has limited effectiveness unless accompanied by a broader range of initiatives aimed at making the firm more customer-focused.

Original languageEnglish
Pages (from-to)1094-1105
Number of pages12
JournalIndustrial Marketing Management
Volume41
Issue number7
DOIs
StatePublished - 1 Oct 2012

Fingerprint

Business to business
Management process
Customer profitability
Customer relationship management
Profit
Profitability
Marketing
Firm performance
Technology integration
Adaptive structuration theory
Information integration
Survey data
Customer equity
Customization
Adherence

Keywords

  • CRM
  • Customer acquisition
  • Customer equity faithfulness
  • Customer prioritization
  • Customer-focused structure

Cite this

@article{3d88b84f06b24e40948bfaf42a314ab8,
title = "Customer relationship management processes: How faithful are business-to-business firms to customer profitability?",
abstract = "Marketing academicians and practitioners have over the past decade advocated the implementation of customer equity principles within firms. This article draws on adaptive structuration theory to frame the faithfulness of firms to acquiring and maintaining customers according to their profit potential. Using survey data from 158 business units engaged in business-to-business sales, this article examines the motivational effects of market growth rate and customization requirements, and the technology and information integration capabilities of the firm as determinants of firm adherence to treating customers according to their profitability. The study finds that firms are better at maintaining customers according to their profit potential than acquiring customers according to their profit potential. Further, maintenance faithfulness appears to have more ultimate impact on firm performance. The study suggests that pursuing customer profitability has limited effectiveness unless accompanied by a broader range of initiatives aimed at making the firm more customer-focused.",
keywords = "CRM, Customer acquisition, Customer equity faithfulness, Customer prioritization, Customer-focused structure",
author = "Devon Johnson and Clark, {Bruce H.} and Gloria Barczak",
year = "2012",
month = "10",
day = "1",
doi = "10.1016/j.indmarman.2012.04.001",
language = "English",
volume = "41",
pages = "1094--1105",
journal = "Industrial Marketing Management",
issn = "0019-8501",
publisher = "Elsevier Inc.",
number = "7",

}

Customer relationship management processes : How faithful are business-to-business firms to customer profitability? / Johnson, Devon; Clark, Bruce H.; Barczak, Gloria.

In: Industrial Marketing Management, Vol. 41, No. 7, 01.10.2012, p. 1094-1105.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Customer relationship management processes

T2 - How faithful are business-to-business firms to customer profitability?

AU - Johnson, Devon

AU - Clark, Bruce H.

AU - Barczak, Gloria

PY - 2012/10/1

Y1 - 2012/10/1

N2 - Marketing academicians and practitioners have over the past decade advocated the implementation of customer equity principles within firms. This article draws on adaptive structuration theory to frame the faithfulness of firms to acquiring and maintaining customers according to their profit potential. Using survey data from 158 business units engaged in business-to-business sales, this article examines the motivational effects of market growth rate and customization requirements, and the technology and information integration capabilities of the firm as determinants of firm adherence to treating customers according to their profitability. The study finds that firms are better at maintaining customers according to their profit potential than acquiring customers according to their profit potential. Further, maintenance faithfulness appears to have more ultimate impact on firm performance. The study suggests that pursuing customer profitability has limited effectiveness unless accompanied by a broader range of initiatives aimed at making the firm more customer-focused.

AB - Marketing academicians and practitioners have over the past decade advocated the implementation of customer equity principles within firms. This article draws on adaptive structuration theory to frame the faithfulness of firms to acquiring and maintaining customers according to their profit potential. Using survey data from 158 business units engaged in business-to-business sales, this article examines the motivational effects of market growth rate and customization requirements, and the technology and information integration capabilities of the firm as determinants of firm adherence to treating customers according to their profitability. The study finds that firms are better at maintaining customers according to their profit potential than acquiring customers according to their profit potential. Further, maintenance faithfulness appears to have more ultimate impact on firm performance. The study suggests that pursuing customer profitability has limited effectiveness unless accompanied by a broader range of initiatives aimed at making the firm more customer-focused.

KW - CRM

KW - Customer acquisition

KW - Customer equity faithfulness

KW - Customer prioritization

KW - Customer-focused structure

UR - http://www.scopus.com/inward/record.url?scp=84867984979&partnerID=8YFLogxK

U2 - 10.1016/j.indmarman.2012.04.001

DO - 10.1016/j.indmarman.2012.04.001

M3 - Article

AN - SCOPUS:84867984979

VL - 41

SP - 1094

EP - 1105

JO - Industrial Marketing Management

JF - Industrial Marketing Management

SN - 0019-8501

IS - 7

ER -