a model of crm and bi for catalogue and online retailers
DESCRIPTION
A Model of CRM and BI for Catalogue and Online Retailers. Dien D. Phan Douglas R. Vogel Information & Management, Vol. 47, Issue 2, 2010. Ranked 2 nd of the top hottest articles on Information&Management. Concepts and Strategies. Four key value propositions ( Amit and Zott , 2001) - PowerPoint PPT PresentationTRANSCRIPT
A Model of CRM and BI for Catalogue and Online Retailers
Dien D. PhanDouglas R. Vogel
Information & Management, Vol. 47, Issue 2, 2010.
Ranked 2nd of the top hottest articles on Information&Management
Concepts and StrategiesFour key value propositions (Amit and Zott,
2001)1. Search and transaction cost efficiency2. Lock-in3. Novelty4. Complementaries
CRM SystemsUse CRM and BI to achieve and maintain the
four key value positions:Common novelties:
1. Price Discrimination2. Switching Cost3. CRM and BI
Long-Tail Phenomenon
CRM-BI Model
HypothesesH1: Price discrimination improve customer
relationshipsH2: Higher switching cost lower levels of
customer satisfactionH3: CRM and BI increase satisfaction and
customer relations
Case study: FingerhutCRM and BI success at first Fingerhut: Lock in
and CRM/BI/DM novelties:1. Closed-end credit coupon system: switching
cost2. CRM tailored sales to customer’s ability to
pay3. BI to predict customer buying patterns4. Mail Stream Optimization algorithm to
reduce impacts of cutting number of overlapped catalogs
5. Viral marketing
Fingerhut Failure in E-commerceEntered e-commerce: 1998Acquired by Federated Department Store:
1999 Fingerhut.netAbandoned BI/CRM: replaced closed-end
credit system with credit cardsSuffered $400 mil. losses in unpaid creditLiquidated Fingerhut: 2002
The new Fingerhut after 2002Fingerhut Direct MarketingBack to closed-end credit system with
CRM/BIStrong growth: 2002-2008.
CRM-BI Impacts on Success
Lessons LearnedBI and CRM reduce the threat of low price
marketHigh switching cost does not reduce
customer satisfactionPrice discrimination reduces customer
satisfactionCRM and BI are critical for FingerhutSupply chain integration are important for
online and catalog firms
Conclusions