The world is abuzz with products and services from
nearly every corner of the globe. High saturation requires changing Customer
Relation Management (CRM) techniques from a product-centered to a
customer-centered approach. Fundamentally, organizations attempt to develop
strong relationships with customers in order to maintain a level of connection to
customers and product identity to foster future sales. Research by Kumar, et.
al (2011), helps to show how CRM systems are copied and adopted in North
American, Asia, and Europe.
CRM systems have acquired a mixed bag in their
effort to move from local to global in their customer development. A majority
of those who attempt to make this move often fail and have to find alternative
approaches to establishing CRM related relationships. Despite its difficulty
companies realize that it is a worthwhile pursuit in order to gain a sense of
understanding and data feedback about customers.
Large distribution systems that span multiple
countries and economic blocks will also need methods of managing customer’s
data. Some firms have been successful in developing frameworks for Global
Custer Relationship Management (GCRM) to help them manage regional differences
between customers and their regions. Such systems encourage higher levels of
product sales and management.
The researchers conducted interviews of top
marketing professionals in NY, Singapore and Italy. They also attempted to
assess the use of CRM on a global level and focused on large multi-national
firms. Questions were geared around understanding the nature of global CRM are
and what direction companies are moving strategically in their adoption plans.
Through the interviews they found that North
American had some of the largest uses of GCRM systems and has been tapering.
Asian and European firms focused on benchmarking North American firms in their
attempt to determine whether or not their own systems are appropriate and what
direction they should be taking. They
used similar firms as theirs to benchmark. Executives believed it is beneficial
to have a CRM system that works across multiple regions. At present, Asian and
European firms are afraid of failure of implementation but acknowledge North
American persistence in this area.
The quantitative portion of the study helps to understand
that availability of information on CRM systems impacted the learning curve of
adaptation in other world regions. The more structural similarity between
organizations, geographic distance, economic similarities, and market similarities
between two regions the more learning and adoption took place. Organizations
are still actively seeking Global CRM opportunities.
There is little doubt that the growing complexity of
the supply chain network and increased movement of products and service across
the globe will create more complex systems. Global CRM systems are needed to
manage the multiple regions and nations in order to help spur future growth. As
such systems are costly and difficult to develop those systems that appear to
work well are being adapted by others organizations without having to put in
the research investments and time to do so.
Kumar, et. al. (2011). Analyzing the diffusion of
global customer relationship management: a cross-regional modeling framework.
Journal of International Marketing, 19 (1).
