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BusinessAge

 

Managing customer relationships - in a measured way

There are some advantages in being an academic who also works in industry, provided you are one of those who see their role as taking knowledge forward rather than travelling the world peddling theoretical ideas which are unimplementable or bring no value to companies. As Professor of Relationship Marketing at Bristol Business School, I have three roles. One is to help students come to grips with ideas that are intellectually sound and based in reality. One is to undertake evidence-based research in my area - customer relationship management.

The third is to work as part of a wider team in the Business School to develop a worldwide reputation in researching and understanding customer management. The advantage of being a hybrid academic and practitioner is that you can stand back from your academic work and look at it from the perspective of the practitioner.

 If you look at what is written about marketing, what students are being encouraged to learn, and what research is encouraged, the material divides into several broad groups. They include:

  • Uncritical case studies, unfortunately sometimes designed to glorify companies or lend themselves to simplistic analyses (Company X did Y, and got result Z, with no serious analysis of why this happened, whether it really happened at all and whether any gain was durable).
  • Extensive classifications -seven ways to segment a market, six levels to define a product-useful because they get students to think about the variety of the marketing world, but potentially deadening in that they discourage thinking about why we have classification systems, whether they are the best, and so on.
  • Theoretical concepts - from those that are so trite they should never have been documented, to stunning insights which revolutionise not only the way marketers think, but also what customers get.
  • Analyses, based on qualitative or quantitative research, of what is going on in a particular situation, whether it supports particular marketing theories and why- these range from really significant pieces of research to quite trite ones of limited validity. This literature is particularly strong in the classic areas of marketing, such as market research, database marketing, brand management, but weaker in newer areas, such as CRM and e-business.
  • Works at the meta-level - on areas such as the sociology, psychology, philosophy and practice of marketers, focusing for example on whether what marketers do is any use to anybody, and why.
  • My favourite - works that look very hard at what marketers do, why they do it, what works and what does not, and why. I quote two examples below.  Whichever approach we decide to take, use, we are fortunate to have an extensive literature to draw on.  We may not agree with all the contents, but we certainly have plenty of material for students to discuss. In the new areas that we are focusing on at Bristol, customer relationship management and e-business, we are less fortunate. What is more, we are aware that it is in new marketing areas that marketers can be at their worst, in terms of a disciplined approach to management. The evidence of this comes from these sources:
  • Two research-based books showing how rarely marketers examine and understand information that shows what works - Bob Shaw's book, Improving-Marketing Effectiveness (The Economist Books 1998) and John McKean's book, The Information Masters (Wiley 1999).

Our dream is that we will not teach our students to be obsessed by data, systems or even customers. Too much of the current literature and publicity around CRM does this. On the contrary, we shall be helping them to understand that in these new areas, just like in the older areas of marketing achievement, what works does so because of companies' good (but never perfect) processes for analysing, planning, implementing and measuring what they do with customers. This may not sound very exciting. Our problem is that marketing directors - and sometimes the media - fail to understand that managing marketing is not the same as knowing about marketing content, media, channels etc. The two are very different. Of course, we shall be working with the best tools.

Merlin Stone is Professor of Relationship Marketing at Bristol Business School. He is also a Senior Manager with Mummert + Partner, a leading German firm of management consultants, and a Director of QCi Ltd and Swallow Information Systems Ltd.