Customer Intimacy Analytics

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1 Customer Intimacy Analytics Leveraging Operational Data to Assess Customer Knowledge and Relationships and to Measure their Business Impact by Francois Habryn Scientific Publishing

2 CUSTOMER INTIMACY ANALYTICS LEVERAGING OPERATIONAL DATA TO ASSESS CUSTOMER KNOWLEDGE AND RELATIONSHIPS AND TO MEASURE THEIR BUSINESS IMPACT Zur Erlangung des akademischen Grades eines Doktors der Wirtschaftswissenschaften (Dr. rer. pol.) von der Fakultat fur Wirtschaftswissenschaften des Karlsruher Institut fiir Technologie (KIT) genehmigte Dissertation von Francois Habryn Tag der mundlichen Prufung: 16. Februar 2012 Referent: Prof. Dr. Gerhard Satzger Korreferent: Prof. Dr. Rudi Studer Karlsruhe

3 Preface Acknowledgements Abstract i iii v I. Foundations and Preliminaries 1 1. Introduction Research Problem Research Objective Research Approach Research Questions Structure of the Thesis Towards Customer Intimacy, Three Value Disciplines to Achieve Market Leadership Operational Excellence and Product Leadership as Alternatives to Customer Intimacy The Value Discipline Customer Intimacy Customer Intimacy: Grounded in Relationships and Services Two Divergent Perspectives on Marketing The Service Dimension of Relationship Marketing 35

4 viii Contents The Service-Dominant Logic as an Evolution of Relationship Marketing Customer Intimacy: A Relationship and Service Based Value Discipline Three Approaches Related to Customer Intimacy Key Account Management Market Orientation Customer Relationship Management Customer Intimacy: A Specific Adoption of the Marketing Concept Methods and Techniques to Assess Customer Intimacy Network Analysis Graph Theory for the Representation of Social Networks Centrality Metrics for the Analysis of Social Networks Using Social Network Analysis for Assessing Customer Intimacy Data Mining The Process of Knowledge Discovery in Databases Selection of the Machine Learning Algorithms Evaluation of the Machine Learning Models.. 82 II. Conceptual Model Customer Intimacy Breakdown Analysis Existing Approaches for Assessing Customer Intimacy Overview of the Customer Intimacy Breakdown Analysis Acquired Customer Intimacy Components Acquired Customer Knowledge Established Customer Relationships Leveraged Customer Intimacy Components Customization 107 J

5 ix Loyalty Proactiveness Ill Cross-selling Customer Participation Transaction Costs Reduction Cl Analytics Model and Methodology CI Analytics Overview CI Analytics Methodology ' CI Analytics Model Assessment of the Acquired Customer Intimacy Using Interactions and Networks to Assess Acquired Customer Intimacy Customer Intimacy Metrics at the Individual Level Customer Intimacy Metrics at the Organizational Level Empirical Assessment of the Acquired Customer Intimacy Assessment of the Leveraged Customer Intimacy Customization Customer Loyalty Proactiveness Cross-selling Customer Participation Transaction Costs Reduction 163 III. Evaluation CI Analytics Software CI Analytics Business Analysis Requirements Analysis Business Objects Analysis CI Analytics Architecture Architecture Overview 179

6 CI Data Warehouse ) CIETL CI Services CI Dashboard CI Analytics Evaluation Requirements Assessment Business Benefits Evaluation CI Analytics Validation Acquired Customer Intimacy at the Individual Level Data Collection Calibration: Acquired Knowledge Calibration: Established Relationships Acquired Customer Intimacy at the Organizational Level Data Collection Calibration: Acquired Knowledge Calibration: Established Relationships Summary and Interpretation of the Calibration Results Results Summary Results Interpretation Conclusion Contribution Managerial Implications Outlook on Future Research 278 Bibliography 285 Appendix 307 A. Questionnaire Customer Intimacy 307 A.I. English Version 307 A.2. German Version 312 B. Machine Learning Algorithms Settings 317 C. Acquired Customer Intimacy at the Individual Level. 322 D. Acquired Customer Intimacy at the Organizational Level333

7 xi E. CI Analytics Implementation 342 E.I. CI Services for Calculating the Acquired Customer Intimacy Metrics 342 E.2. CI Services for Calculating the Leveraged Customer Intimacy Metrics 345 E.3. C/ Graph: A First Prototype of CI Analytics E.4. Business Benefits Analysis 353

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