SURVEYING THE INFLUENCE OF CUSTOMER RELATIONSHIP MANAGEMENT ON ORGANIZATIONAL PRODUCTIVITY

Transcription

1 ALBERTIANA ISSN ; VOL. 82; SPECIAL ISSUE; PP SURVEYING THE INFLUENCE OF CUSTOMER RELATIONSHIP MANAGEMENT ON ORGANIZATIONAL PRODUCTIVITY HOOSHANG HASSANZADEH* *CORRESPONDING AUTHOR Faculty of Management, Scence an Research Branch, Islamc Aza Unversty, Kerman, Iran Emal: ABSTRACT The purpose of wrtng the current paper s to rank the rvng affectng factors on customer relatonshp management by fuzzy TOPSIS technque. To measure customer relatonshp management, 6 man mensons contan Knowlege management, Technology, Top management, Personnel, Servce customzng an Systems ntegraton were utlze. In the research whch s applcable from goal vew an escrptve from ata collectng, a questonnare nclues 21 questons n 7 pont scale was utlze. The questonnare strbute among statstcal socety (120 managers of fferent levels n Naeran Far Company) after provng ts valty an relablty. The results show that upatng atabases perocally an contnuously, Analyzng customers gathere nformaton an Categorzng fferent customers to present fferent servces to them were chosen as the most mportant nces. KEYWORDS: CUSTOMER RELATIONSHIP MANAGEMENT; MULTI CRITERIA DECISION MAKING; FUZZY TOPSIS TECHNIQUE. 1- INTRODUCTION Customer relatonshp management (CRM) s one of the strateges to manage customer as t focuses on unerstanng customers as nvuals nstea of as part of a group (Lambert, 2010). CRM s one of such contemporary marketng strateges employe n both evelope an evelopng economes. CRM came nto the spotlght when markets were gettng more an more compettve. Toay the marketng moel s changng from prouct-centere approach to a more customercentere approach (Glbert an Dav, 2003). Amttely CRM has varous efntons, for nstance Goong has efne CRM, as nteractve process wth the purpose of gettng more proft (Goong, 2003). Massey beleves that CRM s about attractng, evelopng mantanng an retanng proftable customers over a pero of tme. In ths ncrease heghtene global competton arena, the new ways of workng are frmly shftng nto the hans of payng (Massey et al., 2001). One of the basc elements of moern marketng unerstanng s servce qualty. Busnesses can survve as long as they can meet the customers nees an enable servce qualty. In recent years there have appeare mportant evelopments n the unerstanng of moern bankng. Wth the transton to automaton, servce qualty an management of customer relatonshps have taken place among the subects spoken of n the bankng sector (Maba, 2009). Servce qualty has been foun n lterature to be a compettve tool for many companes. Ths s even much more pronounce n toay s hghly globalze, nustralze an compettve markets. The growth an survval of companes epen on how servce qualty ther customers are of whch telecommuncaton s no excepton. Varous stues have been carre out n the evelope countres regarng servce qualty (Nubs et al., 2008). Implementng CRM can be attrbute to the organzatons reaness n evelopng a customerfocuse busness strategy as t s only at ths pont that mutual benefts for both the organzaton an customer become event (Hansota, 2002). Successful CRM Receve n 23 February, 2015 Revse n 10 May, 2015 Accepte n 6 June 2015

2 programs conser top management commtment as a key success factor for mplementaton (Rgby an Lengham, 2004). CRM allows companes to gather customer ata swftly, entfy the most valuable customers over tme, an ncrease Servce Qualty by provng customze proucts an servces (Rgby et al., 2002). 2-LITERATURE REVIEW The extent of CRM benefts to an organzaton wll vary epenng on the nature of the busness concerne. They are lkely to be more substantal n the case of any organzaton that has some or all of the followng characterstcs: frequent customer nteractons an purchases, hgh cross-sellng potental, perceve rsks an nvolvement, an proftablty (Kumar an Renartz, 2006). Commentators have groupe CRM benefts uner two man paragms: operatonal an strategc benefts (Arnett an Barnarayanan, 2005). Operatonal benefts refer to the operatonal savngs of an organzaton resultng from ts mprove nternal effcency (Iacovou et al., 1995). CRM enables a company to reesgn ts processes to mprove ts operatonal effcency, such as marketng an customer support, front-offce effcency, an prouctvty n sales, whch n turn ecrease customer-relate costs (Rechhel, 1996). CRM enables an organzaton to gan better nformaton on customers values, behavors, nees an preferences an helps t gan a compettve ege over ts compettors. It makes t possble to entfy customers potentals, uncover the profles of key customers, antcpate ther nees, prect ther behavor, wn back lost customers, create personalze marketng plans for each segment, evelop new proucts an servces, esgn communcaton tools an strbuton channels, or entfy new market opportuntes base on customers preferences an hstory (Homburg et al., 2007). The mplementaton of qualty management technques enables organzaton to mprove nternal effcences, whch s consere as a prerequste to become compettve n global marketplace (Lambert an Oueraogo, 2008; Stang an Vokurka, 2003). Total qualty management (TQM) s an organzaton-we process-orente phlosophy that requres changes not only n proucton, but also n ecson-makng processes, employee evelopment, an employee partcpaton an nvolvement (Abullah et al., 2009; Mehra et al., 2001; Power an Sohal, 2000). The research evence shows that when organzatons am towars TQM they aopt more constructve approach to the management of human resources (HR) by upgrang the role of HR functon, an reesgnng exstng human resource management (HRM) practces to ft nto qualty plans an obectves (Blackburn an Rosen, 1993; Vouzas, 2004). In other wors, organzaton ntrouce process mprovement ntatves wthn the HR epartment n such a way to support strategc ams of qualty an to brng t more n lne wth TQM prncples (Greasley, 2004; Hur, 2009; Santos-Vane an Alvarez- Gonzalez, 2009). The hstory of marketng suggests that a paragm shft has occurre over the past few ecaes. In the past, many frms quests for market leaershp were omnate by proucton effcency that was ame at cuttng own operatonal costs per prouce unt, resultng n the ablty to sell proucts an servces at a lower prce. Over the years, ths often prove not to be sustanable as the strateges were easly mtate by compettors over a short pero of tme. Tme has change, an toay, frms have gone from centerng ther attenton on a transacton base sellng platform to a more relatonal base approach (Gummesson, 1999; Gronroos, 1994; Morgan an Hunt, 1994; Peppers et al., 1999; Boulng et al., 2005; Frow an Payne, 2009; Bull an Aam, 2011). Inee, the relatonshp marketng (RM) paragm suggests that a partcular busness shoul be efne by ts customers through an ongong relatonshp (Webster, 1992; Peppers an Rogers, 2004; Payne an Frow, 2005; Vargo, 2009). The moel below s erve of Vazfeust et al (2012) research. He propose 13 moels of customer relatonshp management. In the current paper accorng to Tehran Gas Company nee an after a meetng wth the managers, 5 factors were selecte nclues: knowlege management, technology, top 343

3 management, personnel, servce customzng an system ntegraton. FIGURE 1: CONCEPTUAL FRAMEWORK OF RESEARCH 3-RESEARCH METHODOLOGY The stuy s n a socety nvolvng 120 managers n fferent levels n Naeran Far Co. For gatherng ata, lberty metho an questonnare were use. Two questonnares nclue 21 questons about customer relatonshp management were esgne. The frst one was by lkert 5 pont scale an the other one n 7pont scale n Chen (2000) format. For assessng questonnare valty we aske for experts opnons an to confrm ts relablty Cronbach s alpha metho has been apple. For relablty Cronbach s alpha technque was utlze. The relablty of each varable an questonnare as a whole are shown n Table 1. As Table 1 shows all ones are more than 0.7, so the relablty was prove. As the questons n both questonnares are the same, relablty of one of them s treate suffcent. TABLE 1: THE CRONBACH'S ALPHA FOR QUESTIONNAIRE Number Knowlege management Technology Top management Personnel Servce customzng Systems ntegraton Varables Questonnare as a whole Knowlege management Technology Top management Personnel Servce customzng Systems ntegraton Cronbach s Alpha CRM FUZZY TOPSIS TECHNIQUE Decson makng s fnng process of the best opton among all of them. Almost all of ecson makng questons are face to some problems because of hgh numbers of crtera (Saee et al, 2012; b). Therefore for most of them, ecson makers want to acheve more than one goal for choosng how to execute actvtes (Zeleny, 1982). In tratonal mult crtera ecson makng, the crtera weghts were completely entfe; but because of ambguty an uncertanty n ecson maker s fnngs, certanly ata explanaton s napproprate. As human ugments are almost ambguous, so t s not true to apply tratonal ecson makng technques for the category of ecson makngs. In recent years for removal of these problems, ecson makers utlze fuzzy set for ther evaluatons (Chen an Hwang, 1992). The process of usng fuzzy TOPSIS technque s (Kalantar et al, 2012; Saee et al, 2012; a): Step 1: calculatng weghts vector w~ Step 2: normalzng the calculate matrx: R B { 1,..., n} C { 1,..., n} (1) s relate to beneft-base nces an s relate to cost-base nces. Step 3: so normalze weghte matrx s calculate as formula 4: (2) (3) (4) Step 4: etermnng the fuzzy postve eal soluton (FPIS) an fuzzy negatve eal soluton (formulas 5, 6): r mn a b c r,,,, B * * * * a a a a r,,,, C c b a V v, 1,2,..., m, 1,2,..., n mn v r w v ~ mn ; B 1,..., m max (5) C ; 1,..., m ~* v (FNIS) 344

4 max v ~ ; B * 1,..., m ; (6) mn C 1,..., m FNIS { 1,..., n} FPIS { * 1,..., n} Step 5: calculatng the alternatves from postve an negatve eal by applyng formulas 7 an 8: * n ( v ~ *, ), 1,..., m 1 n (7) ( v ~, ), 1,..., m (8) 1 Step 6: Calculatng the relatve closeness to the eal soluton: Cc In real-worl stuaton, because of ncomplete or nonobtanable nformaton, the ata (attrbutes) are often not so etermnstc, there for they usually are fuzzy mprecse. So, we try to exten TOPSIS for fuzzy ata to categorze the rvng factors affectng on ntellectual captal. Lngustc varables for the mportant weght of each crteron are shown n Table 2. TABLE 2: LINGUISTIC VARIABLES FOR THE IMPORTANCE WEIGHT (CHEN, 2000) Very Low VL (0, 0, 1, 2) Low L (1, 2, 2, 3) Meum Low ML (2, 3, 4, 5) Meum M (4, 5, 5, 6) Meum Hgh MH (5, 6, 7, 8) Hgh H (7, 8, 8, 9) (9) Very Hgh VH (8, 9, 10, 10) 4- DATA ANALYZING Because of hgh volume of calculaton we gnore fuzzy ecson makng matrx an fuzzy weghte ecson makng matrx. Fnally by applyng formulas 8, 9 an 10, Table 3 was esgne. TABLE 3: POSITIVE AND NEGATIVE IDEAL SOLUTION, CLOSENESS COEFFICIENT AND FINAL RANKS OF VARIABLES Varables D + D - Cc Rank Puttng comprehensve nformaton to customers about organzatonal servces Collectng an regsterng customers nformaton n ther atabase Managng an regsterng customers suggestons an complants Analyzng customers gathere nformaton Sharng customers gathere nformaton an ts analyss for all organzaton s epartments Applyng nformaton technologes for more communcaton wth customers Utlzng nterorganzatonal technologes lke software systems an nternal networks to nformaton storage an sharng all over the organzaton Affectve usage of software tools an nstrument Upatng atabases perocally an contnuously Top management commtment an supportng of customer orente strateges Leang executve customer orente plans by top managers Connectng busness perspectve, msson, functons an customer orente strateges Motvatng employees by motvatonal systems Employees' tranng an makng eucatonal courses Creatng cooperaton an trust among employees Makng closer relatonshps to specal an proftable customers an pressng specfc servces to them Revewng an changng customers actvtes an other ones to acheve more customer orentaton Categorzng fferent customers to present fferent servces to them Ientfyng customers an provng possblty of completng ther nformaton by communcatonal channels (nternet, telephone, fax an... ) Connectng organzaton s epartments together an notfyng of the customer orente actvtes Integratng an makng more relatonshp between gathere nformaton of customers an sharng to all organzaton s epartments

5 Table 3 llustrates upatng exstng atabases contnuously an perocally, analyzng collecte nformaton about every customer an rankng fferent customers to represent specal servces to them were chosen as the most mportant ones. 5- CONCLUSION AND SUGGESTIONS In the current research we try to rank sub crtera of customer relatonshp management by fuzzy TOPSIS technque. The results of applyng fuzzy TOPSIS technque llustrate that Revewng an changng customers actvtes an other ones to acheve more customer orentaton, Puttng comprehensve nformaton to customers about organzatonal servces an Leang executve customer orente plans by top managers were selecte as the most mportant sub crtera. Meanwhle top management was the most mportant crteron an system ntegraton was the last one. Attenng to the results, the managers are avse that by applyng moern technologes an conserng approprate buget, upate ther atabases. The other mportant pont s that entfyng fferent customers wth varous nees an esres whch lea to ong work better. It can be one by categorzng customers n terms of ther nees, wants an esres. Also analyzng ther nformaton s the other suggeston for managers to get an ntegrate system for them. REFERENCES [1] Arnett, B.D. an Barnarayanan, V. (2005), Enhancng customer-nees-rven CRM strateges: core sellng teams, knowlege management competence, an relatonshp marketng competence, Journal of Personal Sellng & Sales Management, Vol. XXV No. 4, pp [2] Boulng, W., Staeln, R., Ehret, M. an Johnston, W.J. (2005), A customer relatonshp management roamap: what s known, potental ptfalls, an where to go, Journal of Marketng, Vol. 69 No. 4, pp [3] Bull, C. an Aam, A. (2011), Vrtue ethcs an customer relatonshp management: towars a more holstc approach for the evelopment of best practce, Busness Ethcs: A European Revew, Vol. 20 No. 2, pp [4] Frow, P.E. an Payne, A.F. (2009), Customer relatonshp management: a strategc perspectve, Journal of Busness Market Management, Vol. 3 No. 1, pp [5] Glbert, G.C. an Dav, K.C.C. (2003), Relatonshp marketng practce n relaton to fferent bank ownershp: a stuy of banks n Hong Kong, Internatonal Journal of Bank Marketng. [6] Goong, N. (2003), What s CRM? A buzz wor or an effectve process, avalable at: [7] Gronroos, C. (1991), The marketng strategy contnuum: towars a marketng concept for the 1990s, Management Decson, Vol. 29 No. 1, pp [8] Gummesson, E. (1999), Total Relatonshp Marketng, Butterworth-Henemann, Oxfor. [9] Hansota, B. (2002), Gearng up for CRM: Anteceents to successful mplementaton, Journal of Database Marketng, Vol. 10 No. 2, p [10] Homburg, C., Hoyer, D.W. an Stock, M.R. (2007), How to get lost customer back?: a stuy of anteceents of relatonshp revval, Journal of the Acaemy of Marketng Scence, Vol. 35, pp [11] Iacovou, M., Benasat, I. an Dexter, A.S. (1995), Electronc ata nterchange an small organzatons: aopton an mpact of technology, MIS Quarterly, Vol. 19 No. 4, pp

6 [12] Kumar, C. an Renartz, W. (2006), Customer Relatonshp Management: A Database Approach, John Wley, New York, NY. [13] Lambert, D.M. (2010), Customer relatonshp management as a busness process, The Journal of Busness & Inustral Marketng, Vol. 25 No. 1, p. 4. [14] Maba, G. (2009), The nfluence of the elements of the extene marketng mx on consumers ntenton to purchase at a fast-foo retal chan n Johannesburg, unpublshe Master ssertaton, Unversty of Johannesburg, Johannesburg. [15] Massey, A., Montoya-Wess, M. an Holcom, K. (2001), Re-engneerng the customer relatonshp: leveragng knowlege assets at IBM, Decson Support Systems, Vol. 32, pp [16] Morgan, R.M. an Hunt, S.D. (1994), The commtment-trust theory of relatonshp marketng, Journal of Marketng, Vol. 58 No. 3, pp [17] Nubs, N.O., Wah, C.K. an Nubs, G.C. (2008), Suppler-customer relatonshp management an customer loyalty: the bankng nustry perspectve, Journal of Enterprse Informaton Management, Vol. 20 No. 2, pp [18] Payne, A. an Frow, P. (2005), A strategc framework for customer relatonshp management, Journal of Marketng, Vol. 69 No. 4, pp [19] Peppers, D. an Rogers, M. (2004), Managng Customer Relatonshps A Strategc Framework, Wley, Hoboken, NJ. [20] Peppers, D., Rogers, M. an Dorf, B. (1999), Is your company reay for one-to-one marketng?, Harvar Buness Revew, Vol. 77, January/February, pp [21] Rechhel, F.F. (1996), The Loyalty Effect, Harvar Busness School, Cambrge, MA. [22] Rgby, D. an Lengham, D. (2004), CRM one rght, Harvar Busness Revew, Vol. 82 No. 11, [23] Rgby, D., Rechhel, F. an Schefter, P. (2002), Avo the four perls of CRM, Harvar Busness Revew, Vol. 80, No. 2, p [24] Vargo, S.L. (2009), Towar a transcenng conceptualzaton of relatonshp: a servceomnant logc perspectve, Journal of Busness & Inustral Marketng, Vol. 24 Nos 5/6, pp [25] Vouzas, F. (2004), HR utlzaton an qualty mprovement: the realty an the rhetorc the case of Greek nustry, The TQM Magazne, Vol. 16 No. 2, pp [26] Webster, F.E. Jr (1992), The changng role of marketng corporaton, Journal of Marketng, Vol. 56 No. 4, pp