Chuong 5-CRM - Quản lý trải nghiệm khách hàng trong kỷ nguyên số - Tài liệu tham khảo | Đại học Hoa Sen

Managing Relationships in Business Markets and Role of Information Communication Technologies
parties of cooperative systems work closely to
buyers and sellers. As a result of high level of
increase the efficiency of operations, there is no
adaptation, this type of relationship is character-
structural commitment through legal bonds.
ized with a high degree of operational linkages
Key Account Management (KAM): KAM and information exchange.
aims to manage relationships with the largest and
Value Creating Networks: Value creating
most important business customers. In KAM, the
networks are considered as important forms of re-
guiding principle is the 80/20 rule. This means
lationship marketing and defined as collaborative
that when 20% of a firm’s customers provides 80%
efforts between two or more firms that bring their
of its business, that 20% deserves special atten-
resources together in order to achieve their mutu-
tion. Firms want to maintain long-term profitable
ally compatible goals that they could not achieve
relationships with the top 20% of customers that
easily alone. In business markets, core capabilities
accounts for 80% of the seller’s total revenue.
of the network member firms come together to
Mutually Adaptive Relationship: In mutually
create superior value for the end consumer.
adaptive relationship there is the high degree of
relationship specific adaptations made by both 88 89 Chapter 5
Customer Service in Digital Era and Role of Internal Markets ABSTRACT
Enterprises require focusing on managing relationships in internal markets because internal marketing
activities play a critical role in creating an organizational climate that supports customer relation-
ship management strategies. The main objective of this chapter is to identify requirements for creating
customer-centric culture in organizations. Customer service can cause the success or failure of a com-
pany; hence, the role of internal market in service profit chain cannot be ignored. After explaining the
significance of the service profit chain for the company, the chapter continues with clarifying the role
of customer experience management in creating customer retention. In this chapter, creating customer-
keeping culture, getting 360 degrees of customer insight, using big data and predictive analysis, engag-
ing customers through social media, and managing experience across multi-channels are explained
as requirements for achieving excellence in customer service experience. This chapter ends up with
discussing the characteristics of customer service in the digital era and key business trends about the future of customer service. INTRODUCTION
ence to the customers. Therefore, management of
relationships with the parties that are involved in
The broad perspective of relationship marketing is
the value creation process is critical for the achieve-
not only limited with the management of standard
ment of customer satisfaction and retention.
buyer and seller relationships but also includes
Managing relationships in internal markets also
management of relationships with the parties that
contributes to the value creation because internal
are involved in the value creation process (e.g.
marketing activities play a critical role in creat-
suppliers, internal markets, non-governmental
ing an organizational climate that is compatible
organizations and influence and referral parties).
with the relationship marketing philosophy (Bal-
Attracting, enhancing and maintaining long-term
lantyne, 2000; 2003). Marketing culture, internal
and profitable relationships with customers can be
marketing and business strategy built on customer
possible by delivering superior value and experi-
experience and service are seen as the prerequisite
DOI: 10.4018/978-1-4666-8231-3.ch005
Copyright © 2015, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
Customer Service in Digital Era and Role of Internal Markets
of implementing relationship marketing (Ben-
Inter-functional cooperation is needed in all
nett & Durkin, 2002). The employee-customer
forms of value creation. Motivated and customer
interaction has an impact on satisfaction with
conscious employee at all levels of the firm can
the customer service; therefore it is important to
be possible by improving the open two way com-
ensure that employees have the traits of customer
munications and coordinating tasks between the
service orientation. The main objective of inter-
front line and support staff. When the various
nal marketing is to hire, train and motivate able
parts of an organization act without cohesion,
employees who want to serve customers well in
this will constrain the performance of employees
order to maintain customer satisfaction (Kotler,
and front line employee (Ballantyne, 2000). Thus
2000). Internal marketing activities include the
firms that want to create high customer value by
creation of a customer oriented internal environ-
adopting relationship marketing strategies must
ment in which all functions of the organization
create an internal environment where all functions
proactively communicate, understand and inform
of the organization proactively communicate,
each other to serve customers effectively (Gilmore
understand and inform each other.
& Carson, 1995). Delivering consistently higher
Bennett and Durkin (2002) highlight that a
quality customer service and achieving a loyal
relational organizational culture requires, spon-
customer base are possible by maintaining a base
taneity, flexibility, creativity and employees
of loyal and stable employees (Sisodia & Wolfe,
who have team, relational and initiative skills.
2000) because findings of the research indicate
Focusing on results, exercising loose control, and
that employee’s job performance is directly tied
being employee oriented, open, parochial, and
to their level of commitment to the organization
pragmatic are considered as the cornerstones of
(Payne & Frow, 2006). At this point, internal
relationship marketing culture (Bennett & Durkin,
marketing is becoming important. Therefore, firms
2002). Relationship marketing culture is expected
must train their employees in order to teach them
to emphasize results over processes because a
how to interact with customers.
process oriented culture is characterized by the
regularity and repetitive nature of the work cycle;
however result oriented cultures are more likely CREATING RELATIONSHIP
to be characterized by initiating behavior and a MARKETING CULTURE IN
dynamic work context that is more compatible INTERNAL MARKETS
with relationship marketing philosophy. Relational
culture much more concerns about people rather
The focus of internal marketing is to get and
than concern about getting the job done. If a culture
retain customer conscious employees (Grönroos,
only interested in the work which people do, in
1990). Organizational culture significantly af-
that culture decision making will become central-
fects employees’ eagerness to serve customers
ized and changes will be imposed by authorities.
(Bellou, 2007). Thus, as Bellou (2007) indicates,
Centralization of decision making creates barrier
it is important to establish a culture that allows
for implementation of relationship marketing.
employee involvement, facilitative management
However, in order to facilitate the relationship
styles, and decentralized decision-making. The
culture, empowerment has to be given to the
organizational culture has to reward customer
employees and the organizational culture should
orientation practices; especially promoting the
be employee oriented rather than job oriented. In
customer service orientation practices among
a relationship culture, employees have to derive
front-line employees is essential.
their identity mainly from association with the
organization and customer base (parochial) rather 90
Customer Service in Digital Era and Role of Internal Markets
than the nature of their job (professional). As,
ployees can deepen with the help of the employee
Bennett and Durkin (2002) indicate that bankers
centric database. This employee centric database
have seen themselves as belonging to a “banking
facilitates the profiling of the employees, under-
profession”; however intense competition has been
standing the meaning each seeks, knowing the
eroding the view about deriving identity from
barriers each faces and the level of bonding with
the nature of job. In order to survive in a highly
the enterprise. This human resource information
competitive market, they notice that rather than
system helps firms to match right employees with
being in the “banking profession”, they are actu-
appropriate processes, functions and customers
ally operating in the financial services industry, (Gordon, 1998).
in which their primary objective is to provide
Empowerment, as an internal market rela-
high quality service. Parochial dimension of re-
tionship management strategy, contributes to the
lationship culture is also the guiding principle of
creation of relationship marketing culture within
Starbucks. Starbucks has been spending lots of
the organization. Empowerment means giving
efforts to contribute positively to the communities
employees the power, freedom, knowledge and
it serves and the environments in which it oper-
skills to make decisions and perform effectively
ates. Howard Schultz emphasized the Starbucks’
(Daft, 2000; p. 42). Empowerment is also consid- guiding principles as follows:
ered as a motivation tool (Hollander & Offermann,
1990) for task accomplishment because employees
We aren’t in the coffee business, serving people.
improve their own effectiveness by choosing how
We are in the people business, serving coffee
to do task and using their creativity. Companies
that empower their employees increase motiva-
Being parochial and responding primarily to
tion and creativity in return (Conger & Kanungo,
customer needs can be seen as essential for the
1988). Service providers should be empowered
successful creation of relational organizational
to resolve any service failure quickly. As Donald
culture. The communication climate and infor-
Porter from British Airways says that “customers
mation sharing within the company have to be
don’t expect you to be perfect. They do expect you
open. There has to be continuous communication
to fix things when they go wrong” (Brookes, 2013).
within the internal market and as well as with the
Immediate service failure recovery is significant
external markets. On the other hand, tight control
for customer retention because 50% of customers
and traditional bureaucratic hierarchies can be
give a company only one week to respond to a
seen as barriers for the relationship marketing
problem before they stop doing business with the
culture. Relationship culture should depend on
company (Harris Interactive, 2011). Companies
employee empowerment. Roles of employees
have been spending billions of dollars for service
have to be defined clearly in order to minimize
improvements in order to solve the problem at
potential conflicts. Furthermore, in a relation-
the first time. If the company is able to solve the
ship culture, organization’s orientation towards
problem of customers at the first time, customer
organizational issues and customers must be much
churn drops down 15% and 20% and it is expected
more pragmatic rather than normative (Bennett
that customers who experience problems and then & Durkin, 2002).
get a solution are actually more loyal to the com-
Companies that adopt relationship marketing
pany than those who never experience a problem
as a key business strategy need to consider their
(Bernoff, 2011). Thus, in order to prevent customer
human resources because relationships with cus-
churn and create customer loyalty, enterprises
tomers will not be enduring until the relationships
have to handle customer complaints and service
with employees deepen. Relationships with em-
failure effectively by empowering their employees. 91
Customer Service in Digital Era and Role of Internal Markets
Benefits of employee empowerment can be
provide a basis for great word of mouth
summarized as follows (Bowen & Lawler, 2000):
communication and customer retention.
Empowerment of employees provides
Especially empowerment of frontline employ-
quicker responses to customer needs dur-
ees is extremely important because empowering
ing service delivery. Customers want quick
frontline employees is a key component for
responses and want immediate solutions to
breaking the cycle of failure in service delivery
their problems and empowerment may lead
(Schlesinger & Heskett, 1991). Call centers
to spontaneous and creative rule breaking
are also important for the creation of customer
responses to satisfy the needs of customers.
centric organization and delivering outstand-
Empowerment is especially important
ing customer experience. Call centers perform
during the service recovery. Service em-
sales, support, and customer service functions.
ployees have to be empowered to make
Call centers need to handle customer complaints
necessary recovery acts. Empowerment
and fix the problems at the first time in order to
provides quick recovery to the service fail-
create meaningful connections with customers,
ures. Recovering service failures may turn
increase customer loyalty and generate revenue.
dissatisfied customers into a satisfied cus-
Therefore, it is important to reinvent call center
tomer. If the employees do not have power
culture to handle customer problems effectively
and knowledge to recover service failures,
and create outstanding customer experience.
customers will remain dissatisfied.
Figure 1 illustrates requirements of creating re-
With the empowerment, employees feel
lationship marketing culture. Enterprises need to
responsible for their job and find the work
adjust their hiring and training practices, seek out
meaningful. Employees will be more sat-
people who love working in customer service, hire
isfied as their sense of control increases
employees who have problem-solving mentality,
because this will make the work more
train employees to improve their conversation meaningful.
skills (e.g. how to create emotional connection
Customers’ perceptions of service qual-
during the conversation and what to say and how
ity are shaped by the courtesy, empathy
to say it skills), motivate them with meaningful
and responsiveness of service employees.
incentives (e.g. giving titles and perks that make
Employee attitudes are a key part of ser-
employees feel important, providing recognition
vice; thus, if employees feel that they are
and bonuses for great service, creating frontline
empowered they will interact with custom-
career progression plan and developing employee
ers with empathy and this leads to custom-
loyalty programs) and abandon metrics that foster
er satisfaction. Empowered employees can
bad customer experience (e.g. measure and reward
provide better care for the customers.
problem-solving excellence over speed or number
Empowered employees can be a great of calls) (Bodine, 2011).
source of service ideas. If employees are
Briefly, all employees within an organization,
encouraged to tell their opinions about the
not just front-line employees, have to work together
work, this can lead to improved service
for delivering experiences that delight custom-
quality and ideas for new services.
ers. As indicated by Hitachi Consulting (2009)
Empowered employees will provide better
it is critical for every employee to understand
service to the customers and satisfied cus-
the role that they play in delivering experiences
tomers spread their appreciation to other
and enterprises have to create a customer centric
people. Thus, empowered employees may
organization (Hitachi Consulting, 2009) by: 92
Customer Service in Digital Era and Role of Internal Markets
Figure 1. Creating relationship marketing culture in internal markets
Training employees in order to build the
the success or failure of a company. According to
knowledge, skills, and behaviors that
Harris Interactive Customer Experience Impact
enable employees to serve customers
Report, customer experience is a high priority for successfully,
consumers and 60% of consumers indicate that
Giving the right incentives and rewards to
they are willing to pay more for a better service
employees in order to encourage them to
experience (ClickSoftware, 2011). Since selection,
perform desired behaviors that will lead to
training and motivation of employees can make a
superior customer experience, and
worthwhile difference in delivering better service
Empowering employees and giving them
experience, service firms should attract, develop,
the freedom to make real-time decisions
motivate and retain qualified employees (Berry,
in order to enable them to deliver positive
2000). Internal market needs to be informed about customer experience
the organization’s mission, products, services and
the expectations of its customers. In turn, this
will provide success in the delivery of marketing ROLE OF INTERNAL MARKET
activities to external customers (Gilmore & Car- IN SERVICE PROFIT CHAIN
son, 1995). Unhappy employees mean unhappy
customers, so a company has to treat its staff as it
The concept of internal marketing has been
treats its customers. If a company wants customer
emphasized in the services marketing literature
satisfaction, firstly it has to ensure employee sat-
because the service is a performance product and
isfaction. Management of an organization must
the performer is employee and only when the
carry out internal marketing and provide employee
service provider performs well, the satisfaction
support and reward for good performance because
of external customer increases. Service can cause 93
Customer Service in Digital Era and Role of Internal Markets
employee relations will affect customer relations
serving customers play a crucial role in creating (Kotler, 2000)
superior customer service experience. Thus, firms
Employee motivation through incentives, re-
have to provide the necessary knowledge about
wards and a compensation system is crucial for
the processes, technologies and customers to the
building stronger relationships with customers
employees. First of all, firms have to identify
and creating customer commitment. However,
relationship marketing skills that are required
enterprises underestimate the importance of the
from employees who participate in delivering
customer experience on customer behavior. The
customer value processes. Then, firms have to
survey results of Forrester’s the state of customer
assess the performance of their employees accord-
experience, indicate that less than one-third of the
ing to these skills and firms have to determine if
companies have employees who share a common
any knowledge gap exists. Finally, firms have to
view of the customer, make decisions that take
develop training programs and technology sup-
the customer into consideration, and reward em-
port to reskill processes where employees require
ployees for improving customer experience (For-
additional knowledge (Gordon, 1998).
rester, 2010). Thus, firms must give importance
Highly satisfied customers means growth and
to internal marketing activities such as training
profitability for the companies. Heskett et al.
and motivating employees. In this way, employees
(2008) develop a “service-profit chain” model and
can handle customer relationships professionally.
this model describes the linkages among employee
Internal marketing activities of a firm must also
satisfaction, customer satisfaction, customer re-
include proper monitoring processes that include
tention, sales and profitability. According to the
periodic performance evaluation of employees
service profit chain model, to keep profitability
in order to prevent failures (Parvatiyar & Sheth,
of the company, it is important to manage all the 2000).
links in the company that may affect customer
Employees need mastery of processes, tech-
satisfaction. As can be seen in Figure 2, enhancing
nologies and people with whom they interact in
internal service quality by equipping employees
order to provide superior service and customer
with the skills, power and tools to serve customers
experience. Improving the employees’ knowledge
increases employee satisfaction. If an employee
and providing necessary tools to employees for
is satisfied with his job, employee tends to be Figure 2. Service profit chain
Source: Adapted from Heskett, J. L., Jones, T.O., Loveman, G. W., Sasser, W. E., & Schlesinger, L. A. (2008). Putting the
service-profit chain to work. Harvard Business Review, July-August, 118-129. 94
Customer Service in Digital Era and Role of Internal Markets
loyal to his job and he will be more productive.
trigger high employee turnover. It is important to
In return this will foster value of external service
keep in mind that employee retention is the key
which leads to increase in customer satisfaction
to customer retention, and as Reichheld (1993)
and retention (Heskett et al., 2008). Quality of
indicates that customer retention can quickly com-
external relationships is so dependent on the
pensate satisfied salaries and other incentives that
quality of internal relationships.
are designed to maintain employee retention. As
Harris Interactive Customer Experience Impact
the employees stay longer with a company, they
Report indicates that 86% of consumers stop doing
are able to serve customers better than new-comer
business with a company because of a bad customer
employees because employees become more famil-
experience and TARP findings reveal the fact that
iar with the business and customers, know what
68% of the customer churn are caused by customer
customers prefer and this enable them to develop
feelings of poor treatment (ClickSoftware, 2011).
trustful relationships with customers. Employees’
It is clear that most customers quit a company due
overall job satisfaction, combined with their ex-
to bad customer service experience. A qualified
perience, helps them serve customers better and
and skilled employee who is committed to deliver-
this leads to customer loyalty. Customers contact
ing customer satisfaction is a valuable asset in an
with the firm through employees, so customers
organization. Employees of an organization can
build a relationship based on trust and expectations
be significant sources of competitive advantage.
with employees, and when the employee leaves
Therefore, employee retention is also an impor-
the firm, the bond is broken (Reichheld, 1993).
tant part of the relationship marketing equation
Employee engagement is considered as one
because employee retention is an antecedent of
of the key CRM implementation elements and
customer retention (Payne, Christopher, Clark,
employees play a significant role within the CRM & Peck, 2000).
processes and implementations. It is impossible
High employee turnover can be seen as a central
to achieve customer-focused organizations and
factor for the cycle of failure in service delivery.
processes without motivated and trained employ-
High employee turnover discourages firms from
ees. Recruiting and selecting the best employees,
investing in hiring, training and other commitment
training and motivating them and providing ef-
building activities, which in turn causes ineffective
fective leadership can be seen as the surest way to
employee performance. Moreover, high employee
enhance employees’ engagement and commitment
turnover negatively affects service quality and
to deliver an outstanding customer experience and
customer retention. As customer churn increases
increase the effectiveness of employee-customer
with the poor service, profitability of the company
interaction (Payne & Frow, 2006).
decreases and this leads to a reduction in the re-
sources of the company to invest in employees’
success (Schlesinger & Heskett, 1991). CUSTOMER EXPERIENCE
To sustain customer loyalty, a company must MANAGEMENT
understand the relationships between customer
retention and the other parts of the business and
Delivering outstanding customer service experi-
align four important aspects of the business: cus-
ence contributes to increase in revenue and profit-
tomers, product/service offering, employees, and
ability of an organization and as well as the entire
measurement systems (Reichheld, 1993). Firms
industry. Through better customer experience,
that cannot understand and quantify the economics
United States airline industry and wireless carriers
of retaining employees, may lose their profitabil-
could earn an additional $8.94 and $14.65 billion
ity because of their human resource policies that
in 2010, respectively (Harris Interactive, 2011). On 95
Customer Service in Digital Era and Role of Internal Markets
the other hand, enterprises estimate that if firms do
on social networks such as Twitter or Facebook
not offer a positive, consistent and brand relevant
and thousands of their friends and followers see
experience, their potential revenue loss would be
this post (Harris Interactive, 2011).
20% of their annual revenue (Oracle, 2013).
Rising expectation of customers and wide-
A poor service experience leads to customer
spread use of social media by customers to share
frustration and negative perceptions about the
their good and poor experience lead firms to focus
product as well as the company and causes loss of
on delivering exceptional customer experience
customer. SAS Institute Inc. and Peppers & Rogers
(Oracle, 2013). Moreover, companies are defi-
Group (2009) indicate that if enterprises don’t do
nitely making a push to improve their customer
customer experience management, they will go
service experience because Forrester (2010) re-
out of business. Customer experience has to be
port shows that customer experience correlates
the strategic priority of the company, especially
to loyalty. Aberdeen Group (2009) explores the
during the economic downturns. As indicated by
adoption of customer experience management and
Jerry Gregoire from Dell Computer “the customer
the study suggests improving customer retention
experience is the next competitive battleground”
(42%), customer satisfaction (33%) and increas-
(Brookes, 2013). Satisfying customer experience
ing cross-selling and up-selling (32%) as the top
is seen as an opportunity to influence customer
three drivers for companies to invest in customer
acquisition, customer retention, loyalty, and ad- experience management.
vocacy and enable firms to outperform and gain
With the globalization, competition and ad-
competitive advantage. Customer experience
vancements in internet technologies, power has
impacts future buying decisions of customers
shifted from companies to customers. The power
and whether or not they will recommend the firm
shift makes it difficult for companies to sustain
to their friends or family. It is important to note
differentiation based only on price or product.
that customer experience is the way to get more
Forrester’s the state of customer experience report
recommendations. Getting recommendation can
indicates that 90% of firms see customer experi-
be seen as outcome from a good experience.
ence as important and 80% of them consider to
Jeff Bezos, CEO of Amazon.com indicates
use customer experience as a form of differen-
that “If you do build a great experience, customers
tiation (Forrester, 2010). Differentiation through
tell each other about that. Word of mouth is very
outstanding customer service and experience is
powerful” (Zaibak, 2013). On the other hand, poor
much more essential in today’s competitive mar-
experience creates negative word of mouth. Dis-
kets because customers have lots of choices and
satisfied customers can tell their bad experiences
they can easily switch to another brand in case
to other people which can be dangerous for the
of dissatisfaction. Outstanding customer service
future of the firm. White house office of consumer
experience creates differentiation for the company
affairs report indicates that a dissatisfied customer
and allows the company to get competitive ad-
tells the disappointing experience approximately
vantage compared to its competitors. Exceptional
9-15 people. More dramatically 13% of dissatisfied
customer service experience fosters customer
customers tell their dissatisfaction more than 20
satisfaction and satisfied customers tend to stay
people (ClickSoftware, 2011). Harris Interactive
loyal, deepen their interactions, buy more and
(2011) Customer Experience Report supports the
make positive word of mouth. Therefore, as can
fact that negative word of mouth turns into world
be seen in Figure 3, creating customer satisfaction,
of mouth with the use of internet technologies.
improving customer retention and loyalty, increas-
After a poor customer experience 26% of custom-
ing cross-sell and up-sell, encouraging positive
ers post a negative comment about the company
word of mouth, creating differentiation and getting 96
Customer Service in Digital Era and Role of Internal Markets
competitive advantage may be considered as the
A Lack of a strategy, process, and cooperation
main motivation for the enterprises to focus on
across the organization is seen as the obstacle
improving customer service experience.
to improve the company’s customer experience
In today’s competitive markets, customers are
(Forrester, 2010). Technology, people and pro-
becoming more demanding and revolting. Cus-
cesses of an organization may cause problems
tomers do not tolerance any failure. According the
in delivering outstanding customer experience.
Harris Interactive (2011) Customer Experience
Especially, technology is considered as the big-
Impact Report, 89% of customers quit the company
gest constraint for delivering superior customer
after a negative experience, and that is up from
experience. Limited technology and application
80% in 2007 and 68% in 2006 (Harris Interactive,
infrastructure, difficulty in tracking performance
2007). Customer experience can cause success or
measures and customer feedback, and lack of 360-
failure of a business. Therefore, 97% of executives
degree customer view across all touchpoint may
believe that delivering a superior customer service
create barriers for providing successful customer
experience is critical for their business success. experiences (Oracle, 2013).
Although, customer experience management is
Customer Experience Maturity Monitor report
top of mind for many companies, most companies
indicates that achieving excellence in the design
fail to fulfill even basic practices of customer ex-
and delivery of the customer experience requires
perience management. Forrester report indicates
capabilities and competencies that focus on deep-
that only 53% of companies measure customer
ening customer insight, strengthening customer in-
experience quality consistently, 40% of them track
teractions, and improving marketing performance.
what happens during customer interactions, %34
An enterprise’s customer experience maturity
of companies review customer experience metrics
impacts its likelihood of achieving competitive regularly (Burns, 2013).
advantage. In this report getting customer experi-
Figure 3. Main motivations for enterprises to improve customer service experience 97