Pennie Frow

A Strategic Framework for Customer Relationship Management

In this article, the authors develop a conceptual framework for customer relationship management (CRM) that helps broaden the understanding of CRM and its role in enhancing customer value and, as a result, shareholder value. The authors explore definitional aspects of CRM, and they identify three alternative perspectives of CRM. The authors emphasize the need for a cross-functional, process-oriented approach that positions CRM at a strategic level. They identify five key cross-functional CRM processes: a strategy development process, a value creation process, a multichannel integration process, an information management process, and a performance assessment process. They develop a new conceptual framework based on these processes and explore the role and function of each element in the framework. The synthesis of the diverse concepts within the literature on CRM and relationship marketing into a single, process-based framework should provide deeper insight into achieving success with CRM strategy and implementation.

A stakeholder perspective of the value proposition concept

Purpose – The value proposition concept and the stakeholder perspective have received relatively little attention within Service‐Dominant (S‐D) logic. This paper sets out to explore value propositions in the context of S‐D logic, within the multiple stakeholder domains that form part of a marketing system. Its purpose is to identify how use of the value proposition concept, in this broader context, provides new insight into value creation within a value network.Design/methodology/approach – This paper explores the development of value propositions in key stakeholder market domains. A five‐step process is developed for identifying key stakeholders and co‐creating value propositions for them within a marketing system.Findings – Value propositions have a key role in co‐creation of value between stakeholders. The development of value propositions in multiple stakeholder domains can provide an important mechanism for aligning value within a marketing system.Practical implications – Stakeholder value propositio...

Value propositions: A service ecosystems perspective

Despite significant interest in value propositions, there is limited agreement about their nature and role. Moreover, there is little understanding of their application to today’s increasingly interconnected and networked world. The purpose of this article is to explore the nature of value propositions, extending prior conceptualisations by taking a service ecosystem perspective. Following a critical review of the extant literature in service science on value propositions, value co-creation, service-dominant logic and networks and drawing on six metaphors that provide insights into the nature of value propositions, we develop a new conceptualisation. The role of value propositions is then explored in terms of resource offerings between actors within micro, meso and macro levels of service ecosystems. We illustrate these perspectives with two real-world exemplars. We describe the role of value propositions in an ecosystem as a shaper of resource offerings. Finally, we provide five key premises and outline a research agenda.

Managing Co‐Creation Design: A Strategic Approach to Innovation

Co‐creation offers firms and their network of actors significant opportunities for innovation, as each actor offers access to new resources through a process of resource integration. However, despite the significant advantages that co‐creation can offer, there is surprisingly little research providing a strategic approach for identifying the most advantageous co‐creation opportunities, especially when many possible options are available. Recently, scholars have called for research that develops tools and processes related to co‐creation. This study addresses these priorities, making two contributions. First, in contrast to previous work considering co‐creation more generally, or focusing on one specific form only, e.g. co‐production, this paper offers a detailed and granular approach to co‐creation design. A co‐creation design framework is developed, which incorporates multiple design dimensions and categories that can reveal new co‐creation opportunities. Second, the research extends the application of a design approach, specifically within the context of co‐creative activities. The authors use field‐based research with senior executives to develop a framework that includes key co‐creation design elements. A morphological approach is used to explore how a lead firm can identify attractive co‐creation opportunities. An innovation solution in one organization provides an illustration of how the co‐creation design framework can be applied.

Relationship Value Management: Exploring the Integration of Employee, Customer and Shareholder Value and Enterprise Performance Models

Value as a theme in the relationship marketing literature is gaining increasing attention. In particular, the synthesis of value concepts with a multi-stakeholder approach to relationship marketing has been the subject of recent interest. Building on earlier work, this article explores how key elements of relationship value can be integrated through a focus on three key stakeholder groups: employees, customers and shareholders. The linkages between employee value, customer value and shareholder value, including the research on the service-profit chain, are explored. The paper also explores the extent to which linkage models or enterprise performance models, which integrate these components of value, have been adopted by organisations. Two case studies are used to illustrate the practical application by organisations seeking to develop enterprise performance models.

Customer management and CRM: addressing the dark side

Purpose – The paper aims to consider the neglected area of customer relationship management (CRM) and customer managements “dark side”; and identify the key types of dark side behaviours of service providers as well as integrated approaches to CRM that will assist in overcoming dark side behaviour.Design/methodology/approach – Based on an extensive literature review, supplemented by insights drawn from an on‐going longitudinal study of CRM, the authors develop a classification of dark side behaviour types.Findings – The paper identifies ten forms of dark side behaviour that may be grouped into three broad categories based on means used and target. It illustrates how different types of dark side behaviours may be linked to the key strategic CRM processes.Practical implications – The paper examines how these dark side practices may be addressed by adoption of a more enlightened approach to CRM.Originality/value – The dysfunctional forms of CRM and customer management have been neglected as an area of resea...

Integrating employee, customer and shareholder value through an enterprise performance model: an opportunity for financial services

The concept of value in relationship marketing is a theme of increasing interest. This paper examines the concepts of employee value, customer value and shareholder value and the linkages between them. It reviews research on the service‐profit chain framework and other related models and then discusses the extent to which linkage models or enterprise performance models, which integrate these components of value, have been adopted by organisations. An example is used to illustrate the adoption and use of an enterprise performance model. Implications for the retail financial services sector are considered.

Designing Business Models for Value Co-Creation

Purpose – The aim of this chapter is to investigate how a focal market actor may design or redesign business models for improved value co-creation. Findings – We posit that value is co-created in use as actors integrate resources in practices, which makes practices a fundamental unit of value creation. Greater density of resources, relevant to a specific practice and to the goals or mission of the actor, corresponds to greater value. The role of a provider is to support other actors in their value-creation processes by providing resources that ‘fit’ into their practices. We identify 12 categories of business model design elements that need to be defined and developed in parallel. We conclude that a focal actor needs to strive for both intra-actor and inter-actor (meso-level) configurational fit of business model elements in order to enable purposeful co-creation in specific practices. Finally, we propose that meso-level configurations develop in a three-phase process of origination, mobilization and stabilization. A focal actor wishing to improve co-creation in a network needs to develop value propositions not only for customers but also for other actor domains. Overall, the performative power of a market actor is dependent on its network position, the relative strength of its business model and the actors ability to author compelling meanings. Originality – The research contributes to the discussion on value co-creation by identifying three shifts in the unit of analysis: (1) we argue that use-value is co-created as actors integrate resources in practices, rendering practices a fundamental unit of analysis, (2) as practices are outcomes of business models, we identified business model design as a key unit of analysis for the improvement of value co-creation and (3) our view on business models is network-centric and we focus on how to introduce new business model elements in a specific actor network. Practical implications – The realization of the fact that value creation occurs in networks of interdependent actors pinpoints the need for increased transparency both between functional silos and between actors. The business model framework identifies 12 design elements, which can act as a ‘checklist’ for managers wanting to engage in co-creative business models.

Developing superior value propositions: a strategic marketing imperative

Purpose – Scholars identify the value proposition as representing the essence of strategy and the firms single most important organizing principle. However, research suggests less than 10 per cent of companies formally develop value propositions. The purpose of this paper is to undertake case study research investigating the process by which leading companies develop their value propositions. Design/methodology/approach – The research identifies that the financial services and telecommunications vertical markets are viewed as the highly sophisticated industry sectors in terms of customer management. These industry sectors are selected for investigation. The paper develops case studies of two companies’ approaches to developing value propositions in the business-to-business (B2B) and business-to-consumer (B2C) sectors within these vertical markets. Findings – This paper contributes to the marketing literature by examining how two large and complex service enterprises have adopted structured processes for ...

Deconstructing the value proposition of an innovation exemplar

Purpose – Research into the identification and development of value propositions has recently been identified as a key research priority by the Marketing Science Institute. The purpose of this article is to identify and develop a process for value proposition deconstruction that can help organizations transform their value propositions in order to gain an improvement in their competitive position. Design/methodology/approach – A case study of an exemplar organization in the health care sector is used to develop an approach for value proposition deconstruction. Using the business system concept as a theoretical framework, the key value-adding elements that comprise this organizations value proposition are identified. A leading financial services firm is used to demonstrate how this learning approach can be successfully applied in developing a new and innovative value proposition. Findings – Using the business system framework, a structured process for deconstructing value propositions is developed. This f...