CRM Under the Microscope: What is it and What Can it Do?

As firms pay greater attention to managing their relationships with customers, there has been a proliferation of interest in Customer Relationship Management (CRM). However, what constitutes a CRM initiative exactly, or whether it can help a firm perform better, remains still unclear. This Working Paper by Professors Reinartz, Krafft, and Hoyer seeks to clarify some of these issues, conceptualizing, operationalizing and validating the … [ Read more ]

Not All Customers Are Created Equal

You may think a buck is a buck, a Euro is a Euro, no matter who pays you. But not all customers are of equal value. In this Harvard Business Review excerpt, Werner Reinartz and V. Kumar say the link between customer loyalty and profits is weak. Here is what you can do about it.

On the Profitability of Long-Life Customers in a Non-Contractual Setting: An Empirical Investigation and Implications…

Popular wisdom holds that it’s the long lifetime customers bringing in the most profits. Or is it? In this working paper, Professors Reinartz and Kumar move beyond the traditional recency, frequency and monetary value (RFM) framework, apply a new model to the profitability-lifetime problem in a non-contractual context, and examine the implications for marketing. Their results may surprise you.