Sales technology research: A review and future research agenda
Agnihotri et al. (2023) conducted a comprehensive literature review to identify key themes in the long history of sales technology research. Their study provides valuable insights into the major challenges faced by sales professionals and managers, emphasizing their continued relevance in today’s business environment. Additionally, the research outlines a future agenda, encouraging scholars to contribute new perspectives and further enrich the field of sales technology. With businesses making significant investments in tools like CRM, social media, and AI to enhance productivity, a substantial body of research has emerged on the topic. However, there remains a fragmented understanding of the factors influencing the adoption and role of sales technology. By analyzing 115 studies published between 1971 and 2023, this research aims to consolidate existing knowledge, making it more accessible for managerial decision-making. It also sheds light on the evolving landscape of sales technology and proposes future directions for research in the field.
Overcoming the Cold Start Problem of Customer Relationship Management Using a Probabilistic Machine Learning Approach
Padilla et al. (2021) present a modeling framework (FIM) designed to tackle the cold start issue in Customer Relationship Management (CRM) by utilizing data from customer acquisition. This approach employs probabilistic machine learning with hidden factors to extract meaningful insights while minimizing the need for redundant data storage. In a retail context, FIM enables businesses to make personalized inferences about newly acquired customers, grouping them based on the characteristics of their initial transactions. The study highlights the framework’s potential for customer segmentation without depending on external or self-reported data. Although the model demonstrates promising capabilities, the authors acknowledge its limitations and emphasize the need for empirical validation. They also propose further research to explore underlying behavioral patterns and uncover universal shopping traits that could enhance customer analysis.
How Physical Stores Enhance Customer Value: The Importance of Product Inspection Depth
ZHANG, J. Z et al (2022) stated that The study explores the role of physical stores in a multichannel environment, emphasizing their ability to enhance customer value, particularly for deep products requiring thorough inspection. Employing a multimethod approach, including a hidden Markov model and experiments, the authors find that purchasing deep products in physical stores transitions customers to a high-value state more effectively. Experiential learning theory is validated, showing that physical engagement with deep products leads to strong experiential knowledge, fostering repatronage and influencing future online purchases. The research suggests that multichannel retailers should employ a strategic combination of channels and products for effective customer development, providing insights for experiential retail designs.
Customer Relationship Management: Transcending the Indian Banking Industry.
CHATURVEDI, P. (2022) stated that The paper emphasizes the potential of banking CRM software in enhancing client interaction and satisfaction. While Relationship Marketing techniques are understood, the adoption of technology-enabled CRM in Indian banks is still in early stages, with operational CRM being common. Collaborative CRM is visible in internet and mobile banking, ATM features, and other services. The use of analytical CRM varies among banks. Effective collection, organization, and utilization of client data are crucial for recognizing needs, segmenting customers, and building accurate profiles. The challenge lies in turning available data into a competitive advantage. The suggested strategic framework emphasizes CRM as an organization-wide strategy, highlighting the alignment of bank culture and processes for customer-centric operations. Leadership commitment, training, cooperation, and communication between departments are deemed essential for successful CRM implementation.
Beyond the Target Customer: Social Effects of Customer Relationship Management Campaigns.
Ascarza et al. (2017) examine the influence of CRM campaigns in environments where network effects play a role. Unlike conventional approaches that primarily focus on direct profitability, this study highlights how targeting specific customers can also impact those within their social network. Conducting a randomized field experiment with 6,000 mobile telecommunication users, the researchers discovered that individuals connected to targeted customers showed higher usage levels and were less likely to switch providers. The study quantifies this effect with a social multiplier of 1.28, meaning there is a 28% spillover impact on first-degree connections. These findings suggest that businesses should not only evaluate the direct financial returns of CRM initiatives but also consider their broader influence on interconnected customers when shaping marketing strategies.
When Salespeople Manage Customer Relationships: Multidimensional Incentives and Private Information.
KIM, M. et al (2019) stated that This article addresses challenges in the sales performance–moral hazard trade-off when salespeople manage customer relationships. It introduces a multidimensional incentive model based on joint acquisition and maintenance metrics, analyzing its impact through an analytical model and empirical study using microfinance organization data. The research explores how firms managing CRM can assess performance metrics and compensation plans on customer acquisition, retention, and overall productivity. The study also introduces a new identification strategy to detect adverse selection and customer moral hazard in credit and insurance markets. The article suggests avenues for future research, including investigating incentives for CRM-related metrics, exploring multidimensional incentives in different settings, understanding the balance between adverse selection and efficiency gains through transfers, and exploring salesperson job design in CRM settings.
Making Customer Relationship Management Work: The Measurement and Profitable Management of Customer Relationships.
Ryals (2005) explores the challenges surrounding the perceived shortcomings of Customer Relationship Management (CRM) and demonstrates that when implemented effectively, CRM significantly boosts profitability. By conducting two longitudinal case studies focused on customer lifetime value, the study illustrates how customer management strategies evolve as businesses gain deeper insights into customer value. This evolution ultimately leads to enhanced organizational performance. The research underscores the effectiveness of CRM and stresses that a simple yet strategic approach to analyzing customer value can yield positive business outcomes. It further highlights the necessity of prioritizing customer value maximization within CRM initiatives to drive overall firm success.
Tolerating and Managing Failure: An Organizational Perspective on Customer Reacquisition Management.
VOMBERG, A. et al, (2020) stated that This study explores the impact of failure-tolerant cultures and formal reacquisition policies on successful customer reacquisition management. Drawing on organizational design theory and psychological ownership theory, it finds that failure-tolerant cultures have an inverted U-shaped effect, increasing reacquisition attempts without inducing more failures. Formal reacquisition policies have a positive linear relationship, and they enhance the beneficial effects of failure tolerance on reacquisition performance. The study emphasizes that customer reacquisition performance is positively linked to overall firm financial performance, underscoring the managerial and organizational-level significance of effective reacquisition management.
A Customer Relationship Management Roadmap: What Is Known, Potential Pitfalls, and Where to Go
BOULDING, W. et al. (2005) highlight the significant growth of Customer Relationship Management (CRM) over the past decade, driven by increasing academic interest, industry discussions, and extensive research. Despite these advancements, several questions remain unanswered. The authors view CRM as a continuously evolving field that integrates marketing concepts, technological advancements, data analytics, and organizational strategies. Rather than anticipating a sudden transformation, they suggest that CRM will keep progressing through the adoption of new innovations. Their study aims to inspire further research, encouraging scholars to refine and expand CRM theories and practices as part of its ongoing development.
Why Do Customer Relationship Management Applications Affect Customer Satisfaction?
MITHAS, S. et al. (2005) stated that This research empirically investigates the impact of CRM applications on customer knowledge and satisfaction using archival data from a broad range of U.S. firms. The study reveals that well-integrated CRM applications within the supply chain are likely to enhance customer knowledge. The findings support the idea that CRM applications contribute to firms gaining customer knowledge, leading to improved customer satisfaction. The research integrates insights from marketing and information systems literature and explores the influence of organizational variables on CRM investments. Overall, the results suggest that firms investing in CRM applications experience significant intangible benefits, particularly in terms of enhanced customer knowledge and satisfaction, crucial for success in competitive markets.