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Received (in revised form): 9th October, 2001
Abstract Research evidence shows that companies fail to make their customer relationship management (CRM) efforts pay off. This is probably due to the acknowledged lack of guidelines assisting firms to identify and develop capabilities enabling the successful implementation of their CRM system. In this paper, this deficiency is addressed by proposing a list of critical CRM capabilities and articulating tasks for their development within the organisation. The point of departure is a holistic CRM definition, which is grounded on market-orientation, information technology (IT) and integration. Alongside research evidence, it is used as a basis for the development of an overall conceptual framework for CRM capabilities. The framework is analysed and discussed, and practical implications are offered for the firm.
INTRODUCTION
A hyperdynamic market environment, the weakness of the transactional paradigm to explain the nature of relationships between marketing actors1 and acknowledged difficulties in the implementation of marketing strategies2,3 have directed the rapid development of relationship marketing (RM).4 Proponents of RM maintain that mutual cooperation and interdependence,5 as opposed to competition and choice independence of transactional marketing, results in superior customer value and marketing efficiency.6
Although the ideas of RM have been widely discussed, Gummesson's statement that `the operational contents' of the new paradigm are 'unclear' still holds. Reports by some practitioners, however, suggest that customer relationship management (CRM) provides an actual platform for the operational manifestation of relationship marketing.
DEFINING CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management (CRM) is becoming an issue of increasing importance for the implementation of marketing strategies.8 Yet most business commentators have a fragmented view of CRM. Some consider CRM as an initiative designed to achieve short-term business gains; others view it as being a one-dimensional concept, based solely on the collection and interrogation of data9-11 while others approach it as a new business philosophy.12-14 The authors join with the latter group of specialists in that `CRM is an IT enhanced value process, which identifies, develops, integrates and focuses the various competencies of the firm to the "voice" of the customers in order to deliver long-term superior customer value, at a profit, to well identified existing and potential customer segments'.15 Implicit within this definition lie three core precepts of CRM namely, market...