Sunday, November 11, 2012

The benefits of pursuing a sophisticated customer information system

In that category (SE) the true benefits of the CIS are realized. Those companies with an SE strategy that were pursuing a sophisticated CIS were able to reap performance benefits for their firms and most of the relationship between CIS and performance comes from the SE firm.  Also, firms in these B2B services categories pursuing either the SE or pure Differentiation strategy had better performance than firms in other categories.  

Overall, the impact of strategy selection on customer performance was nearly three times that of the CIS, confirming what many business managers know already. That strategy should drive information systems development and not the other way around.

That said, the impact of the CIS on customer performance variables is about 5%; managing customer information well explains about 5% of the variability in the customer performance data in our sample.  Getting a five percent increase measures like share of wallet, customer retention and customer lifetime value is important but must be understood in the context of other choices for firm investment. And again, the real benefit of the CIS may be the ability to measure performance from a marketing point of view.


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