Improving customer relationship management through database/Internet marketing

It is shown that integration of the Internet and database marketing enhances the effectiveness of customer relationship management practices and that organizational culture, top management support and collaboration between marketing and IT teams need to be in place to provide a supportive environment that is critical for the success of the integration.

Abstract

Firms have only just begun to use the Internet to obtain customer information in their database marketing processes to enhance customer relationship management. This research uses an action research approach to develop a new framework about how they can do this. The action research project was carried out in a large Australian database company because no other sources of empirical information about the topic were available and it could provide rich findings about an under‐researched, practical area. Results showed that integration of the Internet and database marketing enhances the effectiveness of customer relationship management practices. For example, the Internet offers benefits such as increased consumer data collection accuracy and speed, cost savings, greater interaction and better relationships with customers. This research also identifies that organizational culture, top management support and collaboration between marketing and IT teams need to be in place to provide a supportive environment that is critical for the success of the integration.