Implementing a Customer
Implementing a Customer
Relationship Strategy"
The Asymmetric Impa 'et of
Poor Versus Excellent Execution
Mark R. Colgate
Peter J. Danaher
University of Auckland, New Zealand
The benefits of developing customer relationships are well established. However, a well-intentioned relationship marketing strategy may fail because of poor implementation. In this study, the authors look at the effects of implementing a customer relationship strategy. Specifically, they examine the implementation of a personal-banker strategy as a means to developing customer relationships in the retail banking industry. The authors show that an
"excellent" personal banker can increase overall customer satisfaction and loyalty compared to customers who do not have a personal banker. However, a poorly performing personal banker can result in lower overall customer satisfaction and loyalty than if no personal banker had been available. Moreover, the effects seem to be asymmetric, with the negative effects of a poor relationship strategy exceeding the positive benefits of a n "excellent" strategy.
When marketing strategy objectives fail to materialize, is it because the strategy was unsound or the implementation was ineffective, or both?
--Sashittal and Tankersley (1997:77)
This study looks at how the implementation of a relationship strategy can affect customer satisfaction. Strategy impact is determined by comparing the levels of customer satisfaction and loyalty of customers who are part of a formal relationship strategy (a customer retention program in
Journal of the Academy of Marketing Science.
Volume 28, No. 3, pages 375-387.
Copyright 9 2000 by Academy of Marketing Science.
our case) with those who are not, as this enables a comparative picture to be drawn. To understand the underlying factors driving this impact, this article analyzes both the appropriateness of this relationship strategy (i.e., does it make sense in this context?) and its
Relationship Strategy"
The Asymmetric Impa 'et of
Poor Versus Excellent Execution
Mark R. Colgate
Peter J. Danaher
University of Auckland, New Zealand
The benefits of developing customer relationships are well established. However, a well-intentioned relationship marketing strategy may fail because of poor implementation. In this study, the authors look at the effects of implementing a customer relationship strategy. Specifically, they examine the implementation of a personal-banker strategy as a means to developing customer relationships in the retail banking industry. The authors show that an
"excellent" personal banker can increase overall customer satisfaction and loyalty compared to customers who do not have a personal banker. However, a poorly performing personal banker can result in lower overall customer satisfaction and loyalty than if no personal banker had been available. Moreover, the effects seem to be asymmetric, with the negative effects of a poor relationship strategy exceeding the positive benefits of a n "excellent" strategy.
When marketing strategy objectives fail to materialize, is it because the strategy was unsound or the implementation was ineffective, or both?
--Sashittal and Tankersley (1997:77)
This study looks at how the implementation of a relationship strategy can affect customer satisfaction. Strategy impact is determined by comparing the levels of customer satisfaction and loyalty of customers who are part of a formal relationship strategy (a customer retention program in
Journal of the Academy of Marketing Science.
Volume 28, No. 3, pages 375-387.
Copyright 9 2000 by Academy of Marketing Science.
our case) with those who are not, as this enables a comparative picture to be drawn. To understand the underlying factors driving this impact, this article analyzes both the appropriateness of this relationship strategy (i.e., does it make sense in this context?) and its
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