The CRM-paradox by Nguyen




Customer Relationship Management
Knowledge Center

Translate

Forum
6
Anneke Zwart
Student (University), Netherlands

The CRM-paradox by Nguyen

Recently, the CRM-paradox has been put forward by Nguyen, meaning the following: in CRM it is very common to treat certain customer groups differently from others, since various consumers have different needs and wants.
Clearly, there are several important benefits to such a segmented strategy. Firms are able to make their offerings more attractive to specific groups so that profits could increase, long-term relationships could be built, cross-sales could be created etc.
Nevertheless, treating certain consumers differently from others might cause dissatisfaction as well. Some research has shown that customers may perceive favoritism as being unfair and unequal, and as a result these consumers will spread negative information, they will end the relationship or they may act in a way that damages the firm.
This is called the CRM-paradox. Because of the existence of the CRM-paradox, companies need to identify the concerns in controlling and managing the way customers perceive the way they are treated. Using CRM in an inappropriate way could have negative long-term consequences.
Source: Nguyen, B. and D. S. Mutum. (1995). A Review of Customer Relationship Management: Successes, Advances, Pitfalls and Futures. Oxford Brookes Business School, Oxford Brookes University, Oxford, UK, and Warwick Business School, University of Warwick, Coventry, UK.

   

More on Customer Relationship Management:
Summary
DIscussion Topics
🔥Relationship Between Employee Retention and Customer Relationship Management
Framework for Monitoring Customer Service
CRM: What Forms a Strong Customer Relationship?
What is the Impact of CRM on Organizational Performance?
Theories of Customer Relationship Management (CRM)
Rethinking Call Centers
Why Customer Relationship Management? What Makes CRM Viable?
CRM in University Set Up
Customer Intimacy > WHY?
Social Customer Relationship Management | Social CRM
CRM in a Non-profit Context
Business Relations in Corporate America
👀The CRM-paradox by Nguyen
CRM in a Monopoly Situation
CRM in Military Organizations?
Customer Relationship Management as a Strategic Development Philosophy
Healthcare CRM Models?
6 Markets Model (Payne, 1995)
CRM Practices in FMCG Sector
Managing Customer Complaints
Relationship with Company or with Employees?
Stages of Customer Service Transformation
Start CRM with Fixing Fragmented Customer Service Processes
Advanced Customer-Oriented Strategy: Customer Advocacy
An Extreme CRM Case: Front Office
Increasing Student Retention using Higher Education CRM
Six Relationship Management Interaction Processes (Geersbro and Ritter) for International Relations
Customer Relationship Management Metaphor
More CRM Strengths / Benefits
Customer Relationship Management History
CRM in Government
Tool to assess CRM maturity?
Special Interest Group

Do you know a lot about Customer Relationship Management? Become our SIG Leader

Customer Relationship Management
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2023 12manage - The Executive Fast Track. V16.0 - Last updated: 30-1-2023. All names of their owners.