MASTER'S THESIS
2002:016 SHU
Customer Relationship
Management
Case studies of five Swedish Companies
Social Science and Business Administration Programmes
INTERNATIONAL BUSINESS AND ECONOMICS PROGRAMME
JOHAN JOHANSSON
FREDRIK STRÖM
Department of Business Administration and Social Sciences
Division of Industrial Marketing
Supervisor: Manucher Farhang
2002:016 SHU ˇ ISSN: 1404 ­ 5508 ˇ ISRN: LTU - SHU - EX - - 02/16 - - SE
Preface
This thesis is written as our Master's Thesis in the Msc. Programme in International
Business and Economics at the Division of Industrial Marketing at Lule University of
Technology. The hard work during ten weeks of the fall term in 2001 has been very
interesting and has provided us to gain a better understanding of how Customer
Relationship Management is used in Swedish companies and increased skills regarding
academic and scientific writing.
We would like to show our sincere gratitude and appreciation to the people that have
helped us during the process of writing, making this thesis possible. First of all, we
would like to thank our supervisor Professor Manucher Farhang for his support and
committed guidance. Furthermore, we want to thank Tim Foster who provided us with
support and advice during the initial phase of the writing and Christina Sales Baptista
who earlier introduced and guided us in the area of relationship marketing. We would
also like to thank all companies that have taken the time to participate in our research.
Without them, this thesis would not have been possible to complete.
Finally, we would like to give our deepest thanks to our close ones, families and friends,
who have stood us by during these ten weeks. Johan would like to thank Anna-Maria
Killmey and Fredrik would like to thank his dearest sa Martinsson. Their support and
encouragement gave us the strength to successfully bring this thesis to an end.
Lule University of Technology, 2002-01-10
Johan Johansson Fredrik Ström
Abstract
This thesis aims to study how Customer Relationship Management (CRM) is used in
companies. By exploring, describing and somewhat explaining companies objectives of
CRM and their CRM processes as well as how the organization is affected by CRM,
achieves the overall purpose of the study. Five case studies were performed within the
construction, financial, and manufacturing industries and all studied companies
originated from Sweden.
Three major finding was made. Firstly, Swedish companies have well developed
objectives with CRM that exist within the three classification areas, cost saving, revenue
enhancement and strategic impact. Secondly, Swedish companies have accepted and
implemented CRM processes that is a condition for the transition into a customer
centric company. Thirdly, the organizational structure in Swedish companies has not
been affected by the use of CRM due to that Swedish companies have not adapted to the
CRM business framework. Today, Swedish companies mostly use CRM as a sales and
marketing support system.
Sammanfattning
Syftet med denna uppsats är att studera hur Customer Relationship Management (CRM)
används i företag. Syftet är uppntt genom att utforska, beskriva och förklara företags
CRM mlsättningar och deras CRM processer samt hur organisationen har pverkats av
CRM. Fem fallstudier i svenska företag genomfördes inom tre industrier: bygg &
anläggnings, finansiella, och tillverkningsindustrin.
Tre intressanta resultat gjordes, för det första, svenska företag har väl utvecklade CRM
mlsättningarna fördelade i tre omrden, kostnadsbesparingar, intäkts ökande och
strategisk betydelse. För det andra svenska företag har anammat och infört CRM
processer, vilka är en förutsättning för omvandlingen till ett företag med kunden i
centrum. För det tredje har organisationsstrukturen i svenska företag inte pverkats av
användandet av CRM, d svenska företag ej har anammat CRM som affärsmodell. Idag
använder svenska företag CRM mest som ett försäljnings och marknadsföringssystem.
Table of Contents
1. Introduction.......................................................................................................................1
1.1 The Evolution of Marketing.................................................................................... 1
1.2 Customer Relationship Management...................................................................... 2
1.3 Problem Discussion ................................................................................................ 4
1.4 Research Purpose.................................................................................................... 6
1.5 Demarcations .......................................................................................................... 6
1.6 Disposition of the Study ......................................................................................... 7
2. Literature Review .............................................................................................................8
2.1 The Objectives with CRM ...................................................................................... 8
2.1.1 Objectives by Burnett....................................................................................... 8
2.1.2 Objectives by Newell........................................................................................ 8
2.1.3 Objectives by Swift........................................................................................... 9
2.1.4 Objectives by Galbreath & Rogers.................................................................. 9
2.1.5 Objectives by Kalakota & Robinson.............................................................. 10
2.2 The CRM Process ................................................................................................. 10
2.2.1 Integration of Business Functions in the Marketing Strategy ....................... 10
2.2.3 The CRM Process Cycle ................................................................................ 13
2.3 CRM's affect on the organizational structure....................................................... 14
2.3.1 Organization Design Variables ..................................................................... 14
2.3.2 Organizational Change.................................................................................. 17
2.3.3 Structure of the CRM Marketing Organization............................................. 18
3. Theoretical Frame of Reference ....................................................................................20
3.1 Conceptualisation.................................................................................................. 20
3.1.1 Objectives with CRM ..................................................................................... 20
3.1.2 The CRM Process .......................................................................................... 21
3.1.3 The Structure of the CRM Organization........................................................ 23
3.2 Emerged Frame of Reference ............................................................................... 24
4. Methodology....................................................................................................................26
4.1 Research Purpose.................................................................................................. 27
4.2 Research Approach............................................................................................... 27
4.3 Research Strategy.................................................................................................. 28
4.4 Data Collection Method........................................................................................ 29
4.5 Sample Selection................................................................................................... 31
4.6 Analysis of Data.................................................................................................... 31
4.7 General Analytical Strategy.................................................................................. 32
4.8 Quality Standards: Reliability and Validity.......................................................... 34
5. Empirical Data ................................................................................................................36
5.1 Skanska AB........................................................................................................... 36
5.1.1 The Objectives with CRM in Skanska............................................................ 37
5.1.2 The CRM Process in Skanska ........................................................................ 39
5.1.3 CRM´s Affect on the Organizational Structure in Skanska ........................... 40
5.2 Svenska Kullager Fabriken AB ............................................................................ 41
5.2.1 The Objectives with CRM in SKF.................................................................. 42
5.2.2 The CRM Process in SKF .............................................................................. 43
5.2.3 CRM´s Affect on the Organizational Structure in SKF ................................. 44
5.3 Scania AB ............................................................................................................. 45
5.3.1 The Objectives with CRM in Scania .............................................................. 46
5.3.2 The CRM Process in Scania .......................................................................... 47
5.3.3 CRM´s Affect on the Organizational Structure in Scania............................. 49
5.4 Skandinaviska Enskilda Banken AB .................................................................... 50
5.4.1 The Objectives with CRM in SEB .................................................................. 51
5.4.2 The CRM Process in SEB .............................................................................. 52
5.4.3 CRM´s Affect on the Organizational Structure in SEB.................................. 53
5.5 FöreningsSparbanken AB..................................................................................... 55
5.5.1 The Objectives with CRM in FöreningsSparbanken...................................... 56
5.5.2 The CRM Process in FöreningsSparbanken.................................................. 57
5.5.3 CRM´s Affect on the Organizational Structure in FöreningsSparbanken..... 58
6. Analysis............................................................................................................................60
6.1 Within Case Analysis of Skanska AB .................................................................. 60
6.1.1 The Objectives of CRM in Skanska................................................................ 60
6.1.2 The CRM Process in Skanska ........................................................................ 64
6.1.3 CRM´s Affect on the Organizational Structure in SEB.................................. 65
6.2 Within Case Analysis of Svenska Kullager Fabriken AB .................................... 68
6.2.1 The Objectives of CRM in SKF...................................................................... 68
6.2.2 The CRM Process in SKF .............................................................................. 71
6.2.3 CRM´s Affect on the Organizational Structure in SKF ................................. 72
6.3 Within Case Analysis of Scania AB..................................................................... 74
6.3.1 The Objectives of CRM in Scania.................................................................. 74
6.3.2 The CRM Process in Scania .......................................................................... 77
6.3.3 CRM´s Affect on the Organizational Structure in Scania.............................. 79
6.4 Within Case Analysis of Skandinaviska Enskilda Banken AB ............................ 81
6.4.1 The Objectives of CRM in SEB...................................................................... 81
6.4.2 The CRM Process in SEB .............................................................................. 84
6.4.3 CRM´s Affect on the Organizational Structure in SEB.................................. 85
6.5 Within Case Analysis of FöreningsSparbanken AB............................................. 87
6.5.1 The Objectives of CRM in FöreningsSparbanken ......................................... 87
6.5.2 The CRM Process in FöreningsSparbanken.................................................. 90
6.5.3 CRM´s Affect on the Organizational Structure in FöreningsSparbanken..... 91
6.6 Cross Case Analysis.............................................................................................. 93
6.6.1 The Objectives of CRM.................................................................................. 93
6.6.2 The CRM Process .......................................................................................... 96
6.6.3 The Affect CRM has on the Organization...................................................... 97
7. Conclusions and Recommendations............................................................................101
7.1 Conclusions......................................................................................................... 101
7.2 Recommendations for Management ................................................................... 104
7.3 Recommendations for Theory............................................................................. 104
7.4 Recommendations for Further Research............................................................. 105
List of References..............................................................................................................106
Appendix A................................................................. Interview Guide ­ Swedish Version
Appendix B ...................................................................Interview Guide ­ English Version
List of Tables
Table 2.1 Functions of the Customer Centric Enterprise ....................................................11
Table 4.1 Relevant Situations for Different Research Strategies ........................................28
Table 4.2 Six Sources of Evidence: Strenghts and weaknesses...........................................29
Table 4.3 Companies, Industries and Respondents Included in this Research ....................31
Table 4.4 Case Study Tactics for Construct and External Validity .....................................35
Table 5.1 Goals with CRM in Skanska................................................................................38
Table 5.2 Goals with CRM in SKF......................................................................................43
Table 5.3 Goals with CRM in Scania...................................................................................47
Table 5.4 Goals with CRM in SEB......................................................................................52
Table 5.5 Goals with CRM in FöreningsSparbanken ..........................................................57
Table 6.1 Cost Saving Goals with CRM in Skanska ...........................................................61
Table 6.2 Revenue Enhancement Goals with CRM in Skanska ..........................................61
Table 6.3 Strategic Impact Goals with CRM in Skanska.....................................................62
Table 6.4 Analysis of the Goals with CRM in Skanska.......................................................63
Table 6.5 Organizational Design in Skanska Affected by CRM .........................................66
Table 6.6 Organizational Change in Skanska Affected by CRM ........................................67
Table 6.7 Cost Saving Goals with CRM in SKF .................................................................68
Table 6.8 Revenue Enhancement Goals with CRM in SKF ................................................69
Table 6.9 Strategic Impact Goals with CRM in SKF...........................................................69
Table 6.10 Analysis of the Goals with CRM in SKF...........................................................70
Table 6.11 Organizational Design in SKF Affected by CRM .............................................72
Table 6.12 Organizational Change in SKF Affected by CRM ............................................73
Table 6.13 Cost Saving Goals with CRM in Scania ............................................................74
Table 6.14 Revenue Enhancement Goals with CRM in Scania...........................................75
Table 6.15 Strategic Impact Goals with CRM in Scania .....................................................76
Table 6.16 Analysis of the Goals with CRM in Scania .......................................................77
Table 6.17 Organizational Design in Scania Affected by CRM..........................................79
Table 6.18 Organizational Change in Scania Affected by CRM.........................................80
Table 6.19 Cost Saving Goals with CRM in SEB ...............................................................81
Table 6.20 Revenue Enhancement Goals with CRM in SEB ..............................................81
Table 6.21 Strategic Impact Goals with CRM in SEB.........................................................82
Table 6.22 Analysis of the Goals with CRM in SEB...........................................................83
Table 6.23 Organizational Design in SEB Affected by CRM .............................................85
Table 6.24 Organizational Change in SEB Affected by CRM ............................................86
Table 6.25 Cost Saving Goals with CRM in FöreningsSparbanken....................................87
Table 6.26 Revenue Enhancement Goals with CRM in FöreningsSparbanken...................88
Table 6.27 Strategic Impact Goals with CRM in FöreningsSparbanken.............................89
Table 6.28 Analysis of the Goals with CRM in FöreningsSparbanken ...............................89
Table 6.29 Organizational Design in FöreningsSparbanken Affected by CRM..................91
Table 6.30 Organizational Change in FöreningsSparbanken Affected by CRM.................92
Table 6.31 A Comparison of the Goals with CRM..............................................................93
Table 6.32 A Comparison of the CRM Processes................................................................96
Table 6.33 A Comparison of Organizational Design Variables...........................................97
Table 6.34 A Comparison of Organizational Change Variables..........................................98
Table 6.35 The CRM Marketing Organization....................................................................99
List of Figures
Figure 1.1 Customer Relationship Marketing versus Market Planning.................................3
Figure 1.2 A Schematic Presentation of the Disposition of the Study...................................7
Figure 2.1 Customer Contact Points ....................................................................................12
Figure 2.2 The CRM Process...............................................................................................13
Figure 2.3 Schematic Showing Fit Among Major Organizational Design Variables..........15
Figure 2.4 The CRM Marketing Organization with Roles ..................................................18
Figure 3.1 Emerged Frame of Reference.............................................................................25
Figure 4.1 Selected Research Path.......................................................................................26
Figure 4.2 Deduction, Induction and Abduction..................................................................32
Figure 5.1 Organization Chart of Skanska...........................................................................37
Figure 5.2 Organization Chart of SKF.................................................................................42
Figure 5.3 Organization Chart of Scania .............................................................................45
Figure 5.4 Organization Chart of SEB.................................................................................50
Figure 5.5 Organization Chart of FöreningsSparbanken .....................................................55
- 1 -
1. Introduction
The international business environment has changed the way we view upon conducting
business today. The globalization is erasing the national boundaries and today
companies are competing on a global market. This rapid change in the global
environment puts high demands on companies to quickly be able to adjust to new
situations in order to stay competitively strong. Furthermore, the economic and financial
integration have created strong links between companies and the global macro-
economic environment. No company in this integrated world will remain unaffected of
what happens in the world economy. (Brake, Walker & Walker, 1995; Stanat, 2000)
The increased competition on the global marketplace has led to that companies today
focus more on relationships with their customers and are therefore leaving the
transactional-based point of view (Palmer, 2001; Robertson & Kellow, 2001). In order
to meet these international environmental changes, companies use customer relationship
management (CRM) in order to create competitive advantage and thereby becoming
more profitable companies (Galbreath & Rogers, 1999; Valentine, 1999).
In this chapter, the background and some definitions regarding the evolution of
Marketing and Customer Relationship Management are presented as an attempt to
clarify the concepts. Thereafter, a discussion of the problem area will be provided,
leading down to the specific research questions of this study.
1.1 The Evolution of Marketing
The word marketing is derived originally from the Latin "mercatus ", which means
marketplace. It comes from the work "mercari", which means, "to trade". The word
marketing can also be somewhat confusing. If you ask people what marketing is, many
will respond with a variety of words such as: selling, advertising, promotion, targeting
or marketing research. The fact is that marketing encompasses all of these and yet many
other activities and it are concerned with the identification of marketing opportunities.
(Zineldin, 2000) The traditional view on marketing with the concept of 4Ps: price,
product, place and promotion, was originally constructed by Niel Hopper Borden in
1964. This approach that has then over the years been further developed by a number of
authors. These four elements are regarded as the traditional marketing mix and the
marketing mix approach constitutes a production-oriented definition of marketing where
transactions are put in the focus (Grönroos, 1997).
From the early 1980s an alternative approach to marketing theory and practice was
gaining power, namely relationship marketing. The term itself can be traced back to the
service marketing literature, though arguably it can be said to have originated in
industrial marketing (Fletcher, 1990). In the scope of industrial marketing this shift from
traditional marketing towards relationship marketing are occurring and several scholars
are claiming that this is a paradigm shift in marketing (Gummesson, 1997; Grönroos,
1997; Parvatiyar and Sheth, 1994). Grönroos (1997, p.330) defines relationship
marketing in the following way:
"Marketing is to establish, maintain, and enhance relationship with customers
and other partners, at a profit, so that the objectives of the parties involved are
met. This is achieved by mutual exchange and fulfillment of promises."
- 2 -
In its earliest forms, relationship marketing focused simply on the development and
cultivation of long-term, profitable, and mutually beneficial relationships between an
organization and a defined customer group (Parkington & Schneider, 1979). However,
the concept quickly broadened to encompass internal marketing in acknowledgment that
the successful management of external relationships was largely dependent on the
alignment of supporting internal relationships (Kelley, 1990). Several eminent
marketing academics have pointed out the changing role of marketing and the shift from
a transactional to a relational approach, i.e. Webster, (1992); Grönroos (1994); Sheth
and Parvatiyar (1995); Payne, Clark & Peck (1995); Gummesson (1998); Turnbull; Ford
and Cunningham (1996) and Ford, eds. (1997).
1.2 Customer Relationship Management
As already stated, the change of the business environment and the evolution of
marketing to adapt to these changes has led to that the way companies organize
themselves has switched from product-based to customer-based structures. A key driver
of the change is the advent of Customer Relationship Management ­ CRM, which
underpinned by information systems convergence and the development of supporting
software, promises to significantly improve the implementation of relationship
marketing principles. (Ryals & Knox, 2001, Storbacka & Lehtinen, 2000)
From another perspective, CRM is a strategic view of how to handle customer relations
from a company perspective. The strategy deals with how to establish, develop and
increase customer relations from a profitability perspective. Based upon knowledge
about the individual customer's need and potential, the company develops customized
strategies describing how different customers should be treated to become long-term
profitable customers. The basic philosophy underlying CRM is that the basis of all
marketing and management activities should be the establishment of mutually beneficial
partnership relationship with customers and other partners in order to become successful
and profitable. (Spitler, 1997; Zineldin, 2000)
In order to more efficiently manage customer relationships, CRM focuses on effectively
turning information into intelligent business knowledge. This information can come
from anywhere inside or outside the firm and this requires successful integration of
multiple databases and technologies such as the Internet, call centers, sales force
automation, and data warehouses. (Galbreath & Rogers, 1999) There is no universal
explanation of what CRM is, since the area is fairly new and still is developing. It is
therefore important to remember that several attempts of defining CRM exist and that
many companies adapt the definition to their own business and their unique needs.
(Zineldin, 2000) The following quotations are three examples of how CRM is defined:
"CRM is a new customer-centric business model that reorients firm operations
around customer needs (as opposed to products, resources, or processes) in
order to improve customer satisfaction, loyalty, and retention." (Petrissans,
1999, p.95)
"CRM is the integration of customer focus in marketing, sales, production,
logistics and accounting, i.e. in all parts of the company's operations and
structure." (Peppers & Rogers 1999, p.7)
- 3 -
"The activities a business performs to identify, qualify, acquire, develop and
retain increasingly loyal and profitable customers by delivering the right
product or service, to the right customer, through the right channel, at the right
time and the right cost. CRM integrates sales, marketing, service, enterprise-
resource planning and supply-chain management functions through business
process automation, technology solutions, and information resources to
maximize each customer contact. CRM facilitates relationships among
enterprises, their customers, business partners, suppliers, and employees."
(Galbreath & Rogers 1999, p162)
As can be seen above, the three definitions have the following in common: a) they all
include activities in all parts of the company b) the reason for CRM is to create a
customer relationship focused company. In essence, CRM provides management with
the opportunity to implement relationship marketing on a company-wide basis (Ryals &
Knox, 2001). However, for CRM to be successful, all activities in a company need to be
managed in combination to reach success (Hamel & Prahalad, 1994).
Stone, Woodcock & Wilson (1996) note that in some companies there is the belief that
good market planning is equal to good CRM. It must be clear that CRM is not equal to
market planning, since they are founded on two different marketing approaches.
However, the authors add that although the information in market research is CRM, it is
only a small part of the CRM that is needed in order to create profitable customer
relationships. (Ibid.) Market planning is based upon the transactional-based point of
view with market segmentation as the emphasis. Moreover, market planning still
generalize and segment customers according to specific characteristics, but fail to
identify individual wants and need as CRM does, i.e. the knowledge about the
individual customers. (Ryals & Knox, 2001; Storbacka & Lehtinen, 2000) What
differentiates market planning from CRM is exhibited in figure 1.1.
Figure 1.1 Customer Relationship Marketing versus Market Planning
Source: Stone, Woodcock & Wilson, 1996 p.680
Relationship Marketing Market Planning
New Style - Relationship Marketing Old Style - Transactional Marketing
Customer base analysis
Needs Perceptions
Market and competitive analysis
Segmentation
Customer management strategies Marketing strategies
Customer management
policies
Mix
Offer development
Objectives
Implementation
Results
Review
- 4 -
1.3 Problem Discussion
According to Peppers & Rogers (1999), it is important to define and distinguish
different concepts to be able to understand and discuss CRM. The four steps that
according to the authors constitute the core of CRM are to: identify, differentiate,
interact and customize. These steps are roughly in order of increasing difficulty and
complexity, even though you may find a good deal of overlap among them. The first
step refers to identify your customers. A company can't have a relationship with a
customer they do not know about. Secondly, differentiate the customers since they are
different in two different ways. They represent different levels of value to the company,
and by categorizing them the company can prioritize their efforts and gain most
advantage with the most valuable customers but also tailor the firm's behavior toward
each customer based on their individual needs. The third step is to interact with the
customers, to have a successful CRM focus in the company; there must be improvement
both in cost-efficiency and the effectiveness of the customer interactions. The fourth
and final step is to customize some aspect of the company's behavior toward the
customer in terms what is offered. (Ibid.)
Moreover, CRM focuses on establishing a better understanding of customers with
valuable information about their buying patterns in order to create profitable
relationships with the customers. (Farrell, 2001) Many scholars have argued the issue
regarding CRM. The traditional but to some extent wrong view is that CRM is a
technological system for information analysis and handling. (Zineldin, 2000) Hall
(1997) found that even where organizations have technological integration, performance
integration does not always follow. Many departments and individuals see customer
handling as a sales or marketing function, and regard the release of their individual
customer data as signalling a loss of power and inability to solve the customers demand
on the company. Furthermore, Hall (1997) notes that the critical interface is between
marketing and CRM technology. An understanding of the perspective from both of
these disciplines is a prerequisite of cross-functional integration. (Ibid.)
This is further supported by Zineldin (2000), which states that CRM is much more than
a technical solution for data gathering and information handling. Zineldin propose that
CRM is a total management focus that should incorporate all levels and all units of a
company in order to create business possibilities for those who want to prosper in the
competitive international business arena of today. (Ibid.) Moreover, the marketing
perspective of CRM hinges on its potential to offer better customer service, and to
improve marketing effectiveness through better focus (McDonald & Wilson, 1999;
Bessen, 1993). Data systems can improve customer service in a number of areas,
including reliability, efficiency, and communication as well as quality control and
service monitoring, but the outcome of the CRM comes down to how the whole
company uses the information to become customer focused. There is one thing to
receive information; the hard part is using it correctly a process referred to as the CRM
process. (Berkley & Gupta, 1994; Storbacka & Lehtinen, 2000)
Management academics have been preaching customer orientation for decades, but
practice has remained stolidly product orientated (Levitt, 1986; Ryals & Knox, 2001).
However, a combination of factors has now simultaneously obliged and enabled firms
to re-organise around their customers; widespread changes in business processes,
growth of the services sector, and the availability of cost-effective software solution to
- 5 -
the challenges of mass-customization. Although these factors are facilitating the shift
from product management to a customer focus, the shift will not be easily achieved. The
necessary changes will impact on the ways that companies view their customers and
how they treat them, how they are themselves organised and how they measure and
reward success. (Ryals & Knox, 2001; Jennings 1997)
As the companies attempt to re-orient themselves around customers, individual
employees will have to come to terms with changing cultural norms, organizational
structures and the way that their performance is measured and rewarded. (Ryals &
Knox, 2001) In studies by Martiny (1998) and Braganza and Myers (1996), it is
indicated that the commitment of senior management is critical to success. This was
reinforced in a META Group report (1998) that singled out the Chief Executive
Officer's (CEO) involvement as a key success factor for CRM projects, concluding that,
investing in CRM technology without a customer-oriented cultural mindset ­ inherited
hierarchically throughout the enterprise from the CEO ­ is like throwing money into a
black hole. (Ibid.)
Data management systems are the tools that enable the whole firm to reorganise around
its customers, but they are not sufficient in themselves. Companies that regard customer
information management as a marketing department responsibility and leave it in the
hands of marketing planners and product managers in the expectation of short-term
payoffs are missing the point. The adoption of customer-oriented strategies require
according to Jennings (1997) an organizational culture that is adaptive and responsive to
change, and the quality of communication within and organization is an important
aspect of any change initiative. Failure to successfully communicate a change initiative
and its implications for employees can lead to failure. (Jennings, 1997; Ryals & Knox,
2001; Storbacka & Lehtinen, 2000)
According to the study by Christopher, Payne & Ballantyne (1991), the purpose of
relationship marketing is to improve long run profitability by shifting from transactional
based marketing, with its emphasis on winning new customers, to customer retention
through effective management of customer relationship. Furthermore, the authors argue
that the development of theory in relationship marketing continues undebated, the key
question facing practitioners is, how this shift in management focus can be integrated in
practice. (Ibid.)
In short, we have high lightened the importance and potential impact of CRM on
customer relationships. One should emphasize that areas regarding relationship have
been present in marketing discussion for the last thirty years, while CRM that has
evolved from the relationship marketing perspective have been present the last decade.
Despite this, companies still struggle and look on how to use CRM to become more
profitable by identifying the individual customers needs and wants. CRM is not just
technology it is so much more. The company that can tackle the issues regarding CRM
and use it most effectively will be the dominant actor in the business world of today.
(Christopher, Payne & Ballantyne, 1991; Ryals & Knox, 2001; Zineldin, 2000)
- 6 -
1.4 Research Purpose
As discussed above, the importance of CRM has increased due to the rapid speed of
globalization and increased competition both from domestic and international
companies. To prosper on the market today firms have to develop strategies based on
trends and possible scenarios. This makes it interesting to see how companies manage
the issue. Since CRM is a rather new approach to marketing, there is a need for
investigating how the objectives of CRM can be described and how CRM is integrated
into the firm, but also how the CRM activities and procedures are carried out. Now in
the era of globalization, the market conditions are changing and new ways to achieve
competitive advantage must be used. CRM may be a way for the companies to
strengthen their position in the market. Hence, the purpose of this research is to gain a
better understanding of how Customer Relationship Management is used in companies.
As the management of customer relationships may involve numerous activities, we limit
ourselves to the following three research questions:
! What different objectives do companies have with CRM?
! How can the CRM process in companies be described?
! How is the company's organizational structure affected by the introduction of
CRM?
With the first research question we aim at describing what different objectives
companies have with CRM. The intention with the second research question is to study
the CRM process in companies can be carried out by describing the activities or
functions involved. Furthermore, the third research question aims at answering how a
CRM has affected the companies organizational structure, i.e. where in the company as
well as how CRM is integrated.
1.5 Demarcations
We have chosen to study only what the companies objectives with CRM is and not how
companies can benefit from the outcomes of CRM in their operations. These are two
different things; the first states objectives with CRM and the second shows the result
from CRM. Moreover, we are in this thesis only focusing on how companies uses CRM
today. This will eliminate certain scenarios, thus providing us with a phenomenon that
is possible to study during the time span allocated for our thesis. Finally, we are aiming
after a present state of the CRM usage in companies and not to any future scenario or
how the companies want to use CRM in their operations.
- 7 -
1.6 Disposition of the Study
In this section, the disposition of this research will be clarified. To start with, this
chapter has provided the background of the study and a problem discussion of the area,
leading to the specific research questions.
Chapter two contains a review of literature related to the three research questions of
this study, i.e. literature regarding objectives with CRM, and the CRM process from
different views. Furthermore, the literature review covers theories regarding how CRM
affects the organizational structure when being introduced.
Chapter three describes the frame of reference for the investigation, where we aim at
conceptualizing the useful aspects of the literature for our research. In the end of this
chapter, a visualization of the emerged frame of reference is provided.
Chapter four includes a description of the methodological procedures of the study.
These include the research purpose, research approach, research strategy, data collection
method, sample selection, analysis of the data and a discussion of the quality standards
reliability and validity of the study.
Chapter five provides a delineation of the empirical data gathered in the research.
Firstly, a short company presentation is provided and thereafter the data gathered is
presented.
Chapter six includes an analysis of the empirical data. The analysis contains both
within case analyses of each of the five companies as well as a cross case analysis,
where the data from the five companies are compared.
Chapter seven contains the overall conclusions that can be drawn from the research.
Conclusions will be given in relation to the three research questions. Furthermore, the
chapter includes recommendations for managers, theory and further research within the
area.
Figure 1.2 A Schematic Presentation of the Disposition of the Study
Source: Authors' own construction
1
Introduction
2
Literature Review
4
Methodology
3
Frame of
Reference
5
Empirical Data
6
Analysis
7
Conclusions &
Recommendations
- 8 -
2. Literature Review
The previous chapter provided the background and the problem discussion of the area of
this study, leading down to the specific research questions. As discussed in chapter one,
CRM established between companies and customer has been identified as the research
area of this thesis. Hence, theoretical, this study is positioned within this area.
Particularly, the focus is given to the study of how company's uses CRM, with the
emphasis is on the objectives. Furthermore, the CRM process is covered as well as how
the companies' organizational structure is affected by CRM.
2.1 The Objectives with CRM
In this section objectives for CRM within a company will be discussed. Objectives of
CRM will be described in order to present different views on the topic. The presented
objectives of CRM have been verified in previous research and studies by each author
mentioned below.
2.1.1 Objectives by Burnett
Burnett (2001) argues that the objectives from CRM generally fall into three categories:
cost savings, revenue enhancement, and strategic impact. He states that the following
objectives seems reasonable for a company implementing CRM:
! Increased sales revenues results from spending more time with customers, which
results from spending less time collecting information about the customer.
! Win rates improve since the company withdraws from unlikely or bad deals earlier
in the sales process.
! Increased margins results from knowing your customers better, providing a value-
sell, and discounting price-less.
! Improved customer satisfaction rates. The increase occurs because customers will
find that the offer is more in line with their specific needs.
! Decreased general sales and marketing administrative costs. This decrease occurs
since the company has specified and has good knowledge about its target segment
customers. Thereby the company is using its resources better when no effort is a
waste of money or time. (Ibid.)
2.1.2 Objectives by Newell
Newell (2000) states that the key to CRM is identifying what creates value for the
customer and then deliver it. While individual customers have different views of value,
there are many ways to satisfy the each customer. Therefore the CRM objectives is to:
! Identifying those customer values that are pertinent to a particular segment.
! Understanding the relative importance of those values to each customer segment.
- 9 -
! Determining if delivery of those values will affect in a positive manner.
! Communicating and delivering the appropriate values to each customer in ways the
customer wants to receive the information.
! Measuring results and proving return on investments. (Ibid.)
2.1.3 Objectives by Swift
Swift (2001) claims that as organizations move close to their customers and their
extended enterprise business unit, the leading organizations specifically communicate
their objectives and goals. The CRM objective is to increase business opportunities by:
! Improving the process to communication with the right customers.
! Providing the right offer for each customer.
! Providing the right offer through the right channel for each customer.
! Providing the right offer at the right time for each customer.
By doing this company's can receive the following benefits:
! Customer retention. Ability to retain loyal and profitable customers and channels to
growth the business profitability.
! Customer acquisition. Acquiring the right customers based on known or learned
characteristics, which drives growth and increased margins.
! Customer profitability. Increasing individual customer margins while offering the
right product at the right time. (Ibid.)
2.1.4 Objectives by Galbreath & Rogers
Galbreath & Rogers (1999) state that many factors influence the purchasing decision of
a customer. A customer buys products or services when his or her expectations have
been met, or exceeded, in terms of the offering and personalized attention from the
firm's employees. It is necessary for a company to meet customer expectations on a
consistent basis to secure its survival in the long run. This is especially valid now days
when competition is fierce and global. (Ibid) They have developed three main CRM
objectives for companies to handle this challenge: customization, personal relationships
and after sales/service support.
! Customization. Customer want services that meet or exceeds their individual needs.
Creating offerings that meet the diverse wants of a customer base will become a
necessary activity of retaining and growing business. The key to business success
lies in addressing each customer's unique distinct characters. This is called mass
customization. Mass customization enables economies of scale, at the same time, as
it seeks to produce a tailored offering to the needs and wants of the individual
customer who buys them. (Ibid.)
- 10 -
! Personal relationships. The greatest correlation to success is the amount of time
spent with the customer and the ensuing personal relationship of mutual respect and
trust. Therefore building customer relations demands that suppliers pay close
attention to their customers. It means not only listening to the customers, but also
actively using their feedback to improve the relationship and its outcomes. (Ibid.)
! After-sale service/support. Paying attention to customer after the sale with
responsive and proactive service and support can have a great effect on the business
profitability, when many customers leave their suppliers after bad after-sale
service/support experiences. Therefore one way to assure customer loyalty is to
never forget the customer even long after the sale has been consummated. (Ibid.)
2.1.5 Objectives by Kalakota & Robinson
According to Kalakota & Robinson (1999) is CRM an integration framework and a
business strategy. They have listed three objectives of the CRM business framework
that illustrate this: use existing customer relationship to grow revenue, use integrated
information for excellent service, introducing consistent replicable channel processes
and procedures.
! Use existing customer relationship to grow revenue. Enhance profitability by
identifying, attracting, and retaining the best customers. This is done by preparing a
comprehensive view of the customer to maximize his or her relationship with the
company through up selling (selling more exclusive products) and cross selling
(selling complementing products). (Ibid.)
! Use integrated information for excellent service. Use customer information to better
serve the customer needs. By doing this, companies save the customer time.
Customer specific information should be available to all customer contact points.
(Ibid.)
! Introducing consistent, replicable channel processes and procedures. With the
proliferation of customer contact channels, many more employees are involved in
sales. In order to enjoy continued success, companies must have consistent,
dependable, and convenient interaction with customer at every encounter. (Ibid.)
2.2 The CRM Process
This section deals with literature regarding the integration of business functions in the
marketing strategy. Furthermore, this section covers the tactical integration of the CRM
process and the CRM process cycle.
2.2.1 Integration of Business Functions in the Marketing Strategy
Peppers & Rogers (1998) describes four principal business functions that a company
must integrate into its marketing strategy. Furthermore, the authors state that they
should be used together in order to compete successfully in the international business
world. (Ibid.) Table 2.1, describes the four principals business functions that a company
must integrate in its marketing strategy according to Peppers & Rogers (1998).
- 11 -
Table 2.1 Functions of the Customer Centric Enterprise
Function Contribution Implemented by
Custodianship of the
customer base
Differentiating customers by their
enterprise and their value to it; allocating
resources appropriately
Chief Executive Officer
Chief Financial Officer
Chief Information Officer
Marketing Executives
Sales Executives
Vertical Market Managers
Account Relationship Managers
Production, logistics, and
service delivery
Mass customizing to build loyal
customers at higher margins: creating
Learning Relationships
Operation Executive
Customer Service Executives
Product Managers
Area Vice Presidents
Customer communication Providing dialogue feedback to specify
(a) Individual customer needs and
(b) Share-of-customer opportunities
Marketing Executives
Sales Executives
Advertising Executives
Information Systems Managers
Customer Service Executive
Distribution and logistics Defining the customer within the
"distribution waterfall"; creating 1:1
relationships with distributors;
distributing products/services more cost-
efficiently
Marketing Executives
Sales Executives
Channel Managers
Source: Peppers & Rogers, 1998, p.28
! Financial custodian of the customer base. Almost all companies have a customer
base, but the way to use it differs. The customer centric enterprise treats the
customer base as the primary asset of the firm, carefully managing the investment it
makes in this asset. The custodian of the customer base is essentially about
identifying the differences between individual customers. (Ibid.)
! Production, Logistics, and Service Delivery. The customer centric enterprise must
be capable of customize its actual offering to the needs and preferences of each
individual customer. The feedback loop with an individual customer is useful only if
the interaction can be incorporated into the way the enterprise actually behaves
toward the customer. To receive a truly customized product or service, the customer
first has to say what he or she wants and how it should be delivered. These convert
the customer from passive target to active participant in the selling process. This
means that the production and logistics functions has to be integrated with the
marketing function on the micro level of the individual customer rather than just on
the macro level of the target market. (Ibid.)
! Market Communication, Customer Service, and Interaction Dialogue. Marketing
communication and all forms of customer interaction must be combined in a single
function to ensure that the dialogue with a customer today picks up where it left off
yesterday. Without individual customer feedback, no collaboration or customization
is possible, nor it is possible to specify a customers needs in more detail. Creating
dialogue opportunities with customers is a prerequisite for soliciting feedback. The
dialogue itself has to be integrated into the enterprises existing knowledge of that
customer and its needs for additional information. (Ibid.)
! Sales Distribution and Channel Management. A complex issue when implementing
a customer centric enterprise approach is the use of a distribution system that was
designed for disseminating standardized products at uniform prices now shall work
for customized products at customer specific prices. Getting customer feedback is
- 12 -
not easy at all if the firm must use intermediaries like retailers and value-added
resellers. Managing inventory for a warehouse distributor or providing product
support for a value-added reseller, or customizing the product packaging to meet the
needs of an individual retail chain. (Ibid.)
2.2.2 Tactical integration of the CRM process
Swift (2001) provides a view of the CRM process, which enables for terrain and contact
point thinking. In order to facilitate growth and actualization of the goals of CRM, the
company must desire to refocus on the four key elements of the original CRM process.
These four elements of tactical strategies for the CRM process include: interact,
connect, know and relate.
! Interact. A series of transactions and interactions, that makes up a dialogue between
a customer and an enterprise. This is the data that is collected from all contact points
and communication outside points of contacts. (Ibid.) See figure 2.1
.
Figure 2.1 Customer Contact Points
Source: Adopted from Swift, 2001, p.42
! Connect. The mapping and management of interaction points between a
consumer/customer/channel and an organization or enterprise. (Ibid.)
! Know. The insight gained through capture and analysis of detailed information to
create continuous learning about customers, products, channels, markets and
competitors. (Ibid.)
! Relate. The application of insight to create relevant interactions or communications
with customers, channels, suppliers and partners that builds value relationships.
Ibid.)
COMPANY
Sales Internet
Extranet
Agent Retail
Branch
Direct
Mail
Kiosk Call
Center
E-mail/
Fax
ATM
- 13 -
2.2.3 The CRM Process Cycle
Swift (2001) views CRM as an ongoing learning process where the information
regarding an individual customer is transformed into a customer relation. The process
starts with collecting knowledge about the customer and ends with an interaction with
the customer. This interaction enables the establishment of long-term profitable
relationships. To get knowledge about the individual customer the company must have a
well develop info-structure, this means that they must have an infrastructure for
handling information. To become a CRM company is just not only about customer
knowledge it is also about the ability to gather, analyze and to respond on the individual
customers needs. The CRM process cycle consists of the following elements:
Knowledge discovery, Customer interaction, Market planning and Analysis and
refinement.
Figure 2.2 The CRM Process
Source: Swift, 2001, p.40
! Knowledge discovery. The first stage of the cycle is the process of analyzing
customer specification and investment strategies. The analysis is done through a
process of customer identification, customer segmentation, and customer prediction.
The detailed customer information of historical information and customer
characteristics gives marketing personnel a better base for decision-making. In this
stage the company's focus should be on pre-understanding the individual customers
buying behavior. A well-developed and functional data warehouse is a condition
that must be fulfilled in this stage. The data warehouse is defined as a logical
collection of information gathered from all over the organization that supports
business analysis activities and decision-making tasks. Moreover the data warehouse
offers the company the opportunity to combine the massive amounts of information
with campaign management to improve the company's response rate towards the
market. Finally, it enables the company to facilitate customizing offers, reduce costs
by developing targeted campaigns when the company can present the right message,
at the right time for the right customer. (Ibid.)
Knowledge
Discovery
Analysis and
Refinement
Market
Planning
Customer
Interaction
Learning
Action
1 2
4 3
- 14 -
! Customer Interaction. This is the phase of executing and managing customer
communication with relevant information at the right time and offerings using a
variety of interaction channels. The interaction channels used is the ones already
decided in earlier phases. Since it is extremely important to know which channels
the customer prefers to interact via and also the types of technologies they prefer to
utilize. An inventory of all customer interactions and possible interaction channels is
necessary to do. This is important since it is through customer interaction channels
the company has the opportunity to deliver marketing messages and sales
opportunities and to handle service issues. (Ibid.)
! Market planning. This process defines among other things specific customer offers,
and distribution channels. The phase involves four different activities namely
market planning, offer planning, marketing planning and communication planning.
The process enables investments in customer interactions, localization alternatives,
treatment plans and products and services. Furthermore this stage enables the
development of strategic communication plans or programs. (Ibid.)
! Analysis and refinement. This phase consists of a process aiming to capture and
analyzing data from the customer dialogue that the company has received from the
interaction channels. This is a continuing learning process focusing on refining
communication, prices volumes, and approaches etc to excel the business
opportunities in the interaction with customers. A vital task is to understanding
customer specific responses to the company's customer (marketing or sales)
stimulus. (Ibid.)
2.3 CRM's affect on the organizational structure
This section deals with literature regarding the how CRM affects the organizational
structure of companies. This section covers the organizational design variables and also
organizational change. Finally, theory regarding the structure of the CRM marketing
organization is presented.
2.3.1 Organization Design Variables
Galbraith & Kazanjian (1986) propose that the choice of organizational form consists of
a comprehensive design of structure, systems and processes. Their proposed theory
handles the issue of how the marketing strategy in a company affects certain
organizational design variables. Furthermore, the authors state that this theory can be
used when altering the market strategy from transactional oriented to relationship
focused.
The major variables proposed by the authors and presented in figure 2.3 are: task,
structure, information and decision processes, reward systems and people. Each of the
variables depicted in Figure 2.3 represent a choice for the organization. However, to be
successful, the choices should be internally consistent and also consistent with the
firm's strategy.
- 15 -
Figure 2.3 Schematic Showing Fit Among Major Organizational Design Variables
Source: Galbraith & Kazanjian, 1986 p.2
2.3.1.1 Task
! Uncertainty. This is the core concept upon which the organization design
frameworks are based. Uncertainty is the difference between the amount of
information required to perform the task and the amount of information already
possessed by the organization. (Galbraith, 1977)
! Diversity. A process of becoming less dependent on one or a few business areas or
products. Diversification into different business areas can aid a company in
smoothing its sales and profits during different business cycles. (Galbraith &
Kazanjian, 1986)
! Interdependence. There are three types of interdependence. Firstly, pooled, which
means that two units share the same pool of resources. Secondly, sequential, where
there is a movement of work between units. Thirdly, reciprocal, which is a unit that
feeds an inspection operation that in turn feeds back to the assembly unit. (Galbraith
& Kazanjian, 1986)
2.3.1.2 Structure
The well-known organizational strategist Alfred D. Chandler defines structure as:
"The design of organization through which the enterprise is administered."
(Chandler, in Galbraith & Kazanjian, 1986 p. 66)
Furthermore, another organization theorist, John Child define structures as the formal
allocation of work roles and the administrative mechanisms to control and integrate
work activity, including those that cross formal organizational borders. (Galbraith &
Kazanjian, 1986) Galbraith & Kazanjian (1986) has categorized structure in the
following variables.
People
Performance
Task
Structure
Information
and Decision
Processes
Reward
System
Product/
Market
Strategy
- 16 -
! Division of labor. This is, the task of the organization that has to be divided into
subtasks and each subtask has to be assigned to an individual. They are referred to
as division of labor and can be divided into horizontal or vertical division of labor.
(Galbraith, 1977)
! Departmentalization. This refers to when a company divides the work and than
aggregate the work roles in order to form groups, units, department and division to
handle each divided work task. (Galbraith & Kazanjian, 1986)
! Shape. Shape is referred to what organizational structure the company has chosen. It
can differ from the centralized functional organization, the decentralized multi-
divisional forma, the holding company form and the matrix organizational shape.
(Galbraith & Kazanjian, 1986) The shape or configuration of the organization is
measured by the average spans of control and the ration of managers and staff to
total personnel (Garratt, 2000).
! Distribution of power. This refers to how the distribution of power is done
throughout the organization. The vertical distribution is a question of centralization
and the lateral distribution is an issue for the line-staff authority. This thereby allows
for decision making at lower levels in the hierarchy. (Galbraith, 1977)
2.3.1.3 Information and Decision Processes
! Planning and control. In every organization, planning and control systems must be
installed to be able to identify weak areas of the organization in terms of
performance. (Galbraith & Kazanjian, 1986)
! Resource allocation systems. Organizations undertake a myriad of activities in
allocating their resources. These activities are usually labeled as budgeting and the
planning and control systems mentioned above. (Galbraith & Kazanjian, 1986)
! Integrating roles and departments. The roles and departments must be integrated
into the whole organization in order to provide the differentiated subtasks so as to
achieve successful completion of the whole task, i.e. all individuals' tasks should be
a part of the whole task. (Galbraith & Kazanjian, 1986)
2.3.1.4 Reward System
! Compensation. This is referred to in what way and to what extent the employee and
manager are compensated for their work based on performance to round out the
reward system. It can be further categorized into system reward, group reward and
individual rewards. (Galbraith, 1977)
! Promotion. An alternative to tying salary directly to performance is to promote
individuals to higher paying jobs on the basis of performance. (Galbraith, 1977)
! Job design. Galbraith & Kazanjian (1986) states that job design is a powerful
motivation and a man for integrating individual and organizational interest. This can
be created through job enlargement, job enrichment or other types of adjustment to
the work task in order for it to be seen as interesting and motivating. (Ibid.)
- 17 -
! Special awards. Extraordinary work performance must be rewarded with special
awards appropriate to the result of the work. They should be realistic but not very
easy to reach. (Garratt, 2000)
! Performance measurements. Companies must establish some sort of system for
performance measurement in order to be able to compare the company's activities
and operations with themselves and other. This can be done on both short-term and
long-term basis. (Galbraith & Kazanjian, 1986)
2.3.1.5 People
! Recruiting selection. Practitioners believe that the key to organizational
effectiveness is to find the good people and get them into positions of power.
Furthermore, selection is a key design variable. (Galbraith, 1977)
! Transfer, promotion. As people perform and gain more experiences they can be
transferred within the company as a mean of promotion to show appreciation for
their performance. (Galbraith & Kazanjian, 1986)
! Training and development. Theorists state that training and development
experiences should be used to change managers and employees in order to integrate
the individual and the organization. (Garratt, 2000)
! Leader style. Someone always have to be the leader. The occasional use of force
from a leadership position raises the question about who should be the leader of the
team or task force. There are different leadership styles, both formal and informal. It
is important to have the right leader appointed for the right task. (Galbraith, 1977)
2.3.2 Organizational Change
As an organization evolves from a traditional, product-focused enterprise to a customer-
focused, customer driven enterprise, it will need a new infrastructure to support the
processes (Peppers & Rogers, 1999). According to McDermott, one of the father figures
in the field of customer relationship management, in Peppers & Rogers (1999), the most
difficult part of making this transition is not acquiring and installing the technologies
required, but adapting the organization and its people to use it. Moreover, according to
McDermott, a company making these changes has to handle the five components:
! Automation. This refers according to the theory to the creation of a digital paperless
office. Moreover, this would enable the employees to provide greatly improved
customer services because all information would be at their fingertips. (Ibid.)
! Attrition. The second component, attrition allows the company to replace a large
portion of the embattled workforce with fresh faces recruited on the basis of their
willingness to work in a customer-focused environment. This is easily performed in
a company with high turnover and can then be accomplished without resorting to
massive layoffs usually associated with corporate re-engineering. (Ibid.)
! Reorganization. In terms or reorganization, the company should break up the
entrenched bureaucracies that are accumulating around departments such as
- 18 -
accounting, claims and underwriting. Most companies have a weak horizontal
communication and few employees and managers have a clear picture of the
complete organization. (Ibid.)
! Training and education. Training and education refers to the possibilities to allow
managers to professionalize the company's employees to the point where they could
make day-to-day decisions with minimum input from senior managers. (Ibid.)
! Empowerment. In the fifth and final component of organizational change,
McDermott refers to free the employees from the "production line" mentality that
made it impossible for the staff to focus on customer issues. (Ibid.) To further clear
this last stage, McDermott used a metaphor to describe this better:
"Do you think that Eisenhower personally told the machine gunner in the
second World War where to aim? Certainly not, the soldiers knew their mission
and were empowered to accomplish it." (McDermott in Peppers & Rogers,
1999, p.98)
Moreover, the power and information structures in a company are often, according to
Storbacka & Lehtinen, (2000) the largest obstacles towards a successful implementation
of CRM. The product manager organization is the largest causes to the problem, due to
that an organization can have a large number of product managers using the same
customer base. By this reason they have a low willingness to share information
regarding customers. Therefore it is necessary to wind up the companies old power
structures in order to secure the flow of information in the organization and to provide
the customer coherent products. (Ibid.)
2.3.3 Structure of the CRM Marketing Organization
Swift (2001) has developed a model of how companies can structure their CRM
organization. The basic idea is to focus around the key communication and interaction
process. For ease of understanding and to map to the CRM process, the marketing
organization should follow along line of know, relate, interact, and connect. This is
presented in figure 2.4.
Figure 2.4 The CRM Marketing Organization with Roles
Source: Swift, 2001, p.52
CRM Marketing V.P.
Segment
Manager
Marketing
Analyst
Campaign
Manager
Channel
Manager
The Right Customer
Data Mining, Analysis of
Knowledge Foundation,
Hypothesis Development &
Validation
The Right Offer
Designs offers, Strategy,
Timing, printed matter,
Product Management,
Advertising, PR
The Right Time
Owns all customers, has
ultimate say. Campaigns,
Touches, Treatments, Privacy
Using the Right
Channel(s)
Coordinates messages
across channels,
- 19 -
! The CRM Marketing VP. This function emphasizes, manages and coordinates all
facets of the marketing process and is measured on retention, profitability &
acquisitions. The titles today are often Marketing VP and should more accurately be
named Relationships and Communications VP, for this is what this individual must
focus on and to concentrate resources on and achieve ongoing results for the entire
management team. (Ibid.)
! The CRM Marketing Analyst. Focusing on identifying the right customer or
investment opportunities that are worth to exploit. The marketing analyst is intimate
with the knowledge foundation via databases and interacts closely with the IT
department and particularly the database administrator. Except from customer
identification the marketing analyst must segment the customers so that different
events that are worthy of analysis can be identified and the right customer decision
can be made. (Ibid.)
! The CRM Campaign Manager. Having identified the opportunities, the Campaign
Manager then creates the right offer towards the right customer. The campaign
manager is responsible for designing "offers" and to determine campaign strategy.
When doing this, it is important to align various campaign ownership groups such as
product managers, advertising managers, and public relation departments and
outside firms to ensure that the campaign process is fully integrated with the offers.
Test marketing of new offers and the management of the relationship with mail
houses and telemarketing firms are also key tasks for the campaign manager. (Ibid.)
! The CRM Segment Manager. This is perhaps the most important player in the CRM
process, since this person owns the business opportunities or the business problems
such as customer retention, customer acquisition, and customer profitability. He or
she has the final authority and responsibility to decide whether the relationship
marketing and communication process touches the customer, at the right time. The
segment manager is the glue of the team and form a linchpin in the CRM process,
when he or she:
! Manages the dialogue between the company and customer.
! Determines the communication plan, touches, treatments, and rules for
engagement.
! Owns privacy in the organization.
! Interacts with others to align execution of the four elements in the tactical
strategy, i.e. know, relate, interact, and connect. (Swift, 2001)
! The Channel Manager. Channel manager coordinates the customer, offer, and
timing into the channel decisions, and ensure that the same offer is communicated
and then reinforced across all customer contact channels. One important issue is to
present "a single-company image" to the customers across all customer contact
channels. This means that he must interact with the call centers, internet team, sales
force, customer service, and resellers to coordinate touches, treatments and total
customer communication. (Ibid.)
- 20 -
3. Theoretical Frame of Reference
In the previous chapter, we presented a brief review of the literature related to our
research questions. This chapter will provide the conceptualization, which constitutes
the frame of reference for this study. Based on the literature review, we will in this
chapter select relevant studies and concepts that we will use in our research. Hence, the
frame of reference will guide us when collecting the data and help us fulfill the purpose
of gaining a better understanding of how CRM is used in companies. After presenting
the conceptualization, we will provide a visualization of the emerged frame of
reference.
3.1 Conceptualisation
According to Miles & Huberman (1994, p.18), a conceptual framework:
"Explains, either graphically or in narrative form, the main things to be
studied"
We will here start by presenting the theories that will be used connected to our first
research question, of what different objectives do companies have with CRM? This will
be followed by theories connected to our second question, of how can the CRM process
in companies be described? Furthermore, previous research and theories that relates to
the third research question, how is companies the organizational structure affected by
the introduction of CRM? Since CRM is originated from the foundation of relationship
marketing, this will imply that we as authors will remain loyal to this marketing view.
3.1.1 Objectives with CRM
In this section, the conceptualization will be based on the first research question. Hence,
the theories that we believe are crucial in order to be able to answer how companies
perceive the objectives of CRM will be pointed out. The models are related to three
areas: cost savings, revenue enhancement, and strategic impact for the company when
using CRM, suggested by Burnett (2001). First of all, we will specify the theories
regarding objectives with CRM and explain and tie this to the above-described areas.
In order to answer this first research question we will divide the objectives for CRM in
to three categories as suggested by Burnett (2001): cost savings, revenue enhancement,
and strategic impact. The objectives we will use are the objectives presented by Burnett
(2001), Galbreath & Rogers (1999) and Kalakota & Robinson (1999). The theoretical
objectives presented by Swift (2001) is very similar to the objectives presented by
Burnett (2001) and can therefore be viewed as incorporated in his objectives. The
objectives presented by Newell (2000) are also used in our frame of reference. Our
motive for using the above mentioned theories and models are due to the fact that they
complement each other, discussing three important areas of CRM, and create a broad
and fundamental basis for the objectives connected to CRM. Finally, by introducing and
using the different models and theories by several author's makes our frame of
reference very extensive and covers different angles from which the objectives can be
stated.
- 21 -
To be able to find out what objectives for CRM a company can have in terms of the first
category, cost savings, theories of different sources will be utilized. We will select the
ones that are recent and extensive to in the best possible way find out the sources that
can be used. These are:
! Decreased general sales and marketing administrative costs. (Burnett, 2001)
! Measuring results and proving return on investments. (Newell, 2000)
! Communicating and delivering the appropriate values to each customer in ways the
customer wants to receive the information. (Newell, 2000)
! After-sale service/support. (Galbreath & Rogers, 1999)
! Introducing consistent, replicable channel processes and procedures (Kalakota &
Robinson, 1999).
We will also adopt theories what objectives a company can have for CRM in terms of
revenue enhancement. Hence, the selected variables used are:
! Increased sales revenues. (Burnett, 2001)
! Improve win rates. (Burnett, 2001)
! Increased margins. (Burnett, 2001)
! Determine if delivery of customer values will affect in positively. (Newell, 2000)
! Reach economies of scale through mass customization. (Galbreath & Rogers, 1999)
! Use existing customer relationship to grow revenue. (Kalakota & Robinson, 1999)
Literature discussing the third category, strategic impact, will be used in order to see
what strategic objectives companies can have for CRM. This includes:
! Improved customer satisfaction rates. (Burnett, 2001)
! Identifying customer values that are pertinent to a particular segment. (Newell,
2000)
! Understanding the relative importance of values connected to each customer
segment. (Newell, 2000)
! Build personal relationships. (Galbreath & Rogers, 1999)
! Use integrated information for excellent service. (Kalakota & Robinson, 1999)
3.1.2 The CRM Process
This section deals with the second research question, of how the CRM process in a
company can be described. Theories that are important in order to be able to answer this
question will be specified. The structure will be the same as in the literature review,
following the four business functions by Peppers & Rogers (1998) and the CRM
process of Swift (2001) The reason to this is that these theories deals with all the aspects
of the CRM process from two different approaches, and is therefore together more
extensive than just using of the models by themselves. Swift (2001) adopts a more
action-oriented view of the CRM process and Peppers & Rogers (1998) has a function-
oriented approach to the topic. To provide a basis for answering the second research
question, we have used the above stated theories and models, which also focus directly
on the CRM process.
- 22 -
First, we will use literature discussing what functions are involved in the CRM process
will be used in order to see how companies can contribute from using CRM. The
function-oriented theory by Peppers & Rogers (1998) give a completely different but
together with Swift (2001) a very extensive coverage of the CRM process and will
therefore be used. Moreover, it is interesting to view how companies implement
different functions in order to see how well founded the CRM strategy and process are
in the company. Peppers & Rogers (1998) have the most detailed description of how it
can be applied, and will therefore be the model we base this section.
! Financial custodian of the customer base
! Production, logistics, and Service Delivery
! Market communication, Customer Service and Interaction Dialogue
! Sales Distribution and Channel Management
Secondly, we will discuss the theory related to the activity-oriented approach, i.e. Swift
(2001) and then the function-oriented view by Peppers & Rogers (1999) is covered. The
motive for choosing the CRM Process model by Swift (2001) is that it describes the
elements and processes of CRM. The reason for using the four-business function model
by Peppers & Rogers (1998) is that this theoretical proposition to a large extent focuses
on the function within a customer-focused organization. Since the selected theories
differs to a vide extent from each other, they will be used separately but linked, based
on the above-stated reasons. The theory by Swift (2001) states that the following steps
are involved in the CRM process and will therefore be used in our conceptualization.
! Knowledge Discovery
! Market Planning
! Customer Interaction
! Analysis & Refinement
To be able to find out how a company can act in the third step of the activity-oriented
CRM model approach by Swift 2001, customer interaction, the suggested Customer
contact points, by Swift (2001) will also be utilized as a foundation to get better
understanding of how companies can interact with their customers. We have selected
these one on the basis that is extensive enough to in the best possible way find out the
sources that can be used. These are:
! Sales
! Agent
! Retail Branch
! Direct Mail
! Kiosk
! Call Center
! E-mail/fax
! Internet/Extranet
! Automatic Teller Machines (ATM)
- 23 -
3.1.3 The Structure of the CRM Organization
In this section, the conceptualization will be based on the third research question.
Hence, the models that we believe are necessary in order to answer how Swedish
companies structure their CRM organization. The models are related to three areas:
factors affecting the organizational structure, company change and the structure of the
CRM organization. Firstly, we will specify the model used regarding organizational
design variables that determined and shape the organization structure when introducing
new strategies. Secondly, what steps a company goes through when implementing CRM
in their organization and thereby shifting from product-oriented to customer focus.
Models regarding variables affecting the organizational structure will be used in order to
be able to see what determine the actual organization and how these factors can
influence the transition from product-oriented to customer-focuses. For this purpose,
the theory by Galbraith & Kazanjian (1986) will be used. This theory explains how
different aspect of the company will be affected when introducing a new strategy i.e.
CRM. The theory is well formalized and gives a good understanding of how different
areas within a company is affected by a change in strategy as well as a change of
another variable. Furthermore, theories by Galbraith (1977) and Garratt (2000) will be
incorporated to give an even more extensive base for analysis. The areas involved in the
theory and that will be utilized are:
! Task
! Structure
! Information and decision processes
! Reward systems
! People
In terms of the actual organizational change process that a company goes trough when
shifting their focus, organization, goal or vision, McDermott's theory in Peppers &
Rogers (1998) will be used. This theory is well known within the field and brings to the
surface five important issues a company or management teams much deal with when for
instance introducing a customer-focused view within the company, i.e. CRM. These
variables have been used successfully in numerous companies and will therefore be
used in this thesis. Therefore, based on the above-mentioned reasons, the following
variables will be used in order to study this phenomenon:
! Automation
! Attrition
! Reorganization
! Training and education
! Empowerment
When introducing CRM to the organization and thereby shifting the focus of the
company, the marketing organization most certainly is affected. Therefore, we will
study the whole organization but also study if different positions within the marketing
organization are created when introducing CRM.
- 24 -
In this area the theory by Swift (2001) will be utilized in order to point out key positions
that the theories stipulate are essential in order to receive an effective and well-
functioning marketing department that incorporate CRM into every day activities. Swift
(2001) identifies five different but important position needed in order to find the right
customer, give the right offer at the right time and using the right channel. Furthermore,
Swift (2001) states that the marketing organization should follow along the line of the
CRM process in terms of know, relate, interact and connect. The important positions in
the marketing organization are:
! The CRM Marketing VP
! The CRM Marketing Analyst
! The CRM Campaign Manager
! The CRM Segment Manager
! The Channel Manager
The theory regarding the marketing organization and its structure will serve as a
foundation and provide us with the proper framework in order to answer how the
organization is affected by the introduction of CRM.
The presented theories and models in the literature review constitute a portion of the
existing proposed theoretical foundation in the area of research. We have not further
limited our literature base since we perceived the presented theories to be both relevant
but also essential for this thesis.
3.2 Emerged Frame of Reference
In this section we will present our emerged frame of reference. Figure 3.1 visualizes our
frame of reference, showing the company's objectives with CRM. How the CRM
process within a Swedish company can be described and finally, how Swedish
companies are affected by the introduction of CRM in their CRM organization. The
three aspects are co-existing and thereby interdependent.
- 25 -
Figure 3.1 Emerged Frame of Reference
Source: Author's own construction
A Company
Activity oriented
! Knowledge Discovery
! Customer Interaction
! Market Planning
! Analysis & Refinement
Function oriented
! Financial custodian of the customer base
! Production, logistics and service delivery
! Customer communication
! Distribution and logistics
The CRM Process
Company Change
! Automation
! Attrition
! Reorganization
! Training and education
! Empowerment
Marketing Organization
! The CRM Marketing VP
! The CRM Marketing Analyst
! The CRM Campaign Manager
! The CRM Segment Manager
! The Channel Manager
RQ 1
RQ 3
RQ 2
CRM´s affect on the organizational structure
Organizational Design Variables
People
Task
Structure
Info &
decision
Processes
Reward
System
The CRM Objectives
Cost Savings
! Decreased general sales
and marketing
administrative costs.
! Measuring results and
proving return on
investments.
! Communicate and deliver
the appropriate values to
each customer in ways the
customer wants to receive
the information
! After-sale service/support.
! Introducing consistent,
replicable channel
processes and procedures
Revenue enhancement
! Increased sales revenues.
! Win rates improve.
! Increased margins.
! Determine if delivery of
customer values will affect
positively.
! Customization.
! Use existing customer
relationship to grow
revenue.
Strategic Impact
! Improved customer
satisfaction rates.
! Identifying customer
values that are pertinent to
a particular segment.
! Understanding the relative
importance of values
connected to each
customer segment.
! Personal relationships.
! Use integrated information
for excellent service.
- 26 -
4. Methodology
The previous chapter showed how the literature has been conceptualized in this study
and provided a visual explanation of the emerged frame of reference. This chapter will
cover the methodology used in this research. The selection of methodology is based on
the research problem and stated research questions. Motivations and justifications for all
adopted methodological choices will be given in each section.
Figure 4.1 Selected Research Path
Source: Author's own construction
Research
Purpose:
Research
Approach:
Research
Strategy:
Data
Collection
Methods:
Sample
Selection:
Analysis
of Data:
General
Analytical
Strategy and
Mode of
Analysis:
Exploratory Descriptive Explanatory
Qualitative Quantitative
ExperimentsCase
Study
Archival
Analysis
HistoriesSurveys
Document-
tation
Archival
Records
Participant
Observation
Inter-
views
Direct
Observation
Physical
Artefacts
Focused Personal
Interviews
Judgmental Random
Abductive Inductive
Relying on theoretical
propositions/Conceptual
framework
Developing a case
descriptions
Within-case analysis
Cross-case analysis
Deductive
- 27 -
4.1 Research Purpose
Yin (1994) and Eriksson & Wiedersheim-Paul (1997) means that research strategies can
be used for the three purposes: explore, describe, or explain. Exploratory studies aim for
basic knowledge within the problem area (Wallén, 1996). These studies are suitable
when a problem is difficult to demarcate and when relevant theory is unclear. They are
further appropriate when important characteristics and relations are hard to determine.
Descriptive research is appropriate when a problem is clearly structured but the
intention is not conduct research about connections between causes and symptoms. The
researcher knows what he or she wants to investigate but not the answers. Explanatory
research is useful for studying relations between causes and symptoms. The researcher
tries to identify the factors, which together cause a certain phenomena (Eriksson &
Wiedersheim-Paul, 1997).
Which category a study belongs to depends on ambitions and knowledge within the
research area (Wallén, 1996). The research purpose of this thesis is mainly descriptive.
This due to the fact that the research purpose is clearly structured and that this thesis
wanted to gain a better understanding of how Customer Relationship Management is
used in companies. Moreover, the fact that we are not focusing on the connection
between causes and symptoms also demonstrate that this thesis will follow a descriptive
approach. However, this thesis is also somewhat exploratory. This due to that CRM is a
rather new area of interest for companies and also by the fact that we have not been able
to find studies that focus on the exact same topic as we have chosen to do in this thesis.
Towards the end of this thesis the authors' own conclusions are presented by answering
the research questions. In that sense, this thesis is beginning to explain the issues that
have been described. This makes our study mainly descriptive but with exploratory and
explanatory influences.
4.2 Research Approach
According to Holme and Solvang (1991), there are two general approaches of a
research, qualitative and quantitative. When conducting a quantitative research,
statistical methods are used to analyze the data and a large number of respondents are
selected, either randomly or judgmentally. A quantitative approach is formalized,
structured and characterized by a high degree of control from the researcher. The
distance between the source and the researcher is larger than in a qualitative research.
During a qualitative research, one or few objects are studied in depth and the main
purpose is to gain a deeper understanding of the problem studied and to acquire a
profound knowledge of the studied objects. The qualitative approach is characterized by
closeness between the source and researcher, and a low degree of formalization. (Ibid)
The choice of research approach naturally depends on the defined research problem and
the data needed for solving this problem. In this thesis, a qualitative approach is used.
This is due to the aim of gaining a better understanding of how CRM is used in
companies. Furthermore, in order to understand and characterize the use of CRM in
companies, a qualitative approach is the most appropriate. The stated research questions
will require answers that probably cannot be fully obtained by quantitative means.
- 28 -
4.3 Research Strategy
Yin (1994) lists five research strategies that a researcher can choose between in social
science. These are experiments, surveys, archival analyses, histories and case studies.
Yin claims that the selection of one of these strategies depends on (1) the type of
research question, (2) the extent of control a researcher has over behavioral events, and
(3) the degree of focus on contemporary versus historical events. Table 4.1 below shows
the different research strategies in relation to these three conditions.
Table 4.1 Relevant Situations for Different Research Strategies
STRATEGY Form of research
question
Requires control over
behavioral events
Focuses on
contemporary events
Experiment How, why Yes Yes
Survey Who, what, where, how
many, how much No Yes
Archival analysis Who, what, where, how
many, how much No Yes / No
History How, why No No
Case study How, why No Yes
Source: Yin, 1994, p. 6
In this research, the type of research question posed is primarily of a "how" character,
there is no control over the behavioral events, and the focus is on a contemporary event.
This will influence the choice of research strategy. An experiment is done when an
investigator can manipulate behavior directly and precisely. This can occur in a
laboratory, focusing on isolated variables. (Ibid) Hence, in an experiment, control over
the behavioral environment is required, and is therefore not possible in our research.
Survey research is, according to Tull and Hawkins (1990), concerned with systematic
gathering of information from respondents, generally in the form of a questionnaire. The
use of questionnaires would not provide us with the better understanding of how CRM
is used in companies, and can therefore be ruled out as well. The historical method deals
with the past, and is used when no relevant persons are alive to report (Yin, 1994).
As the above discussion indicates, two strategies seem to be appropriate in our research,
an archival analysis and a case study. When conducting an analysis of archival
information, Yin (1994) holds that the goal is to describe the incidence or prevalence of
a phenomenon. The use of archival information is difficult when this topic is a coming
research area. Yin describes a case study as:
"An empirical inquiry that investigates a contemporary phenomenon within its
real life context, especially when the boundaries between phenomenon and
context are not clearly evident." (Yin, 1994, p.13)
However, Yin notes that the preferred strategy when the question is "how", there is no
control over behavioral events, and contemporary events are studied, is the case study.
Therefore, the case study is selected as research strategy in this study.
- 29 -
According to Yin (1994), a case study can be either a single-case or a multiple-case
study. Eriksson and Wiedershiem-Paul (1997) note that the possibilities of comparisons
between the cases are added in a multiple-case study, and that this could increase the
understanding. Yin (1994) also notes that the evidence from multiple cases often is
considered more compelling, and that the study therefore is regarded as more robust.
Due to these advantages, this research is conducted by using a multiple-case study. As
we had decided to use a qualitative approach, case studies shown to be the most
appropriate choice for our thesis. Further support for the choice of case studies is that
the research was conducted in five companies, by looking on several issues, and this
made us unable to draw any general conclusions but rather generalize to theoretical
propositions.
4.4 Data Collection Method
When conducting case studies, Yin (1994) asserts that the data collection can rely on six
different sources. These sources include documents, archival records, interviews, direct
observation, participant observation and physical artifacts. Yin also notes the
importance of using multiple sources of evidence, so called "triangulation", i.e.
evidence from two or more sources. Table 4.2 shows the strengths and the weaknesses
of each of the six sources of evidence.
Table 4.2 Six Sources of Evidence: Strengths and weaknesses
Source of
Evidence
Strengths Weaknesses
Documentation
! Stable - can be reviewed repeatedly.
! Unobtrusive ­ not created as a result
of the case study.
! Exact ­ contains exact names,
references, and details of an event.
! Broad coverage ­ long span of time,
many events, and many settings.
! Retrievability ­ can be low.
! Biased selectivity, if collection is
incomplete.
! Reporting bias ­ reflects
(unknown) bias of author.
! Access ­ may be deliberately
blocked.
Archival
Records
! Same as above for documentation.
! Precise and quantitative.
! Same as above for documentation.
! Accessibility due to privacy
reasons.
Interviews
! Targeted ­ focused directly on case
study topic.
! Insightful ­ provides perceived causal
inferences.
! Bias due to poorly constructed
questions.
! Response bias.
! Inaccuracies due to poor recall.
! Reflexivity ­ respondent gives
what interviewer wants to hear.
Direct
Observations
! Reality ­ covers events in real time.
! Contextual ­ covers context of event.
! Time-consuming.
! Selectivity ­ unless broad
coverage.
! Reflexivity ­ event may proceed
differently because it is being
observed.
! Cost ­ hours needed by human
observers.
Participant
Observation
! Same as above for direct
observations.
! Insightful into interpersonal behavior
and motives.
! Same as above for direct
observations.
! Bias due to investigator's
manipulation of events.
Physical
Artifacts
! Insightful into cultural features.
! Insightful into technical operations.
! Selectivity.
! Availability.
Source: Yin, 1994, p. 80
- 30 -
Archival records have the same strengths as documentation, but are also more
quantitative and precise. Since this is a qualitative research, these latter characteristics
are not needed in this study. Direct observations will not be used either, mainly due to
that it is extremely time consuming and very costly. This is also the case with
participant observation. Physical artifacts are not relevant in this study either, since
there is no real need for data on cultural features or technical operations. In this
research, the sources of documentation and interviews will be used, allowing for
multiple sources of evidence. Documentation that will be used is mainly in the form of
company information material. Documentation material will provide us with more
information about the company, allowing us to obtain a clearer picture of the companies
studied and how they handle CRM. Interviews were used due to its ability of providing
a deep insight.
According to Yin (1994), interviews can be open-ended, focused or structured. In open-
ended interviews, the interview does not follow any structured questions. Yin holds that
one asks a respondent for both the facts of a matter as well as for the respondent's
opinion about events, and the respondent might act more like an informant than a
respondent. In a focused interview, the respondent is interviewed for a short period of
time, like an hour. Here, the researcher is more likely to follow a certain set of
questions, although the interviews might still assume a conversational manner. Finally,
a structured interview is the most structured form of interview. The questions are clearly
structured along with the lines of a formal survey. (Ibid.)
In this study, a focused interview was conducted since a certain set of questions needed
to be answered during a limited period of time, in order to obtain data on the research
questions. The interviews also had to be relatively open-ended, since we wanted to
preserve the interview flexibility. We also wanted to be able to use probing techniques,
which is possible in focused interviews.
According to Eriksson and Wiedershiem-Paul (1997) there are two types of interviews:
personal and telephone interviews. In this research, the interview method used was a
telephone interview. A personal interview was not used mainly for reasons of high cost
and time consumption, but also due to the belief that the questions in this research could
be answered properly by way of telephone interviews. Before the interviews were
conducted, an e-mail was sent to the respondents, explaining the area of research and
overall purpose, forming a base for the following interviews. We also had telephone
conversations with several individuals including the respondent in each company. This
gave us a good pre-understanding of the topic in general and especially how it worked
in each company. We believe that this gave us the possibility of obtaining the most
exhaustive data related to our research questions.
During the interviews, a pre-constructed interview guide was used (see appendix A), as
suggested by Holme and Solvang (1991). The same interview guide was used during all
interviews. However, the returned questions from the respondents gave us hints on what
to ask in each interview more specifically. This included that some questions could be
ruled out and some questions deemed as necessary could be added in each interview.
The telephone interviews lasted around 60 to 80 minutes, and were all conducted in
Swedish, which is the mother tongue both of the researchers and the interviewees.
During the interviews, we both took notes and used a tape recorder in order to register
the empirical data precisely.
- 31 -
4.5 Sample Selection
In order to suit our research purpose, the sample collection followed some judgmental
criteria. As discussed in chapter one, there is a need of investigating how CRM is used
in companies. Our first sample criterion is that the companies have to originate from
Sweden. This criterion is suitable since Sweden has a large portion of both MNC's and
SME's that have customers all over the world. This will also facilitate the contacting
phase and ease the establishment of a good relation with the respondents in this
research. Secondly, we wanted the companies to have international operations, since we
believe that these are more likely to have extensively facetted customer relationship and
may use CRM as a tool, which also is indicated in chapter one. The third criterion is that
the companies should claim that they actively are managing customer relationship in
some way.
Even though there is no specific industry criterion in this study, we wanted to study five
companies operating in at least two dynamic industries. Another criteria were a high
stated customer focus in their business. Moreover, since it is of great importance for
large companies to have well developed relationships, especially customer relationships,
as mentioned in chapter one, the sample will contain large companies. Companies were
identified from a list of Sweden's 50 largest companies in Veckans Affärer, nr 38,
(2001). After identifying proper companies, we called them up in order to find out if
these matched our criteria. Nine companies in five industries were identified and five of
them matched the above stated criteria. These companies can be seen in table 4.3 below.
Table 4.3 Companies, Industries and Respondents Included in this Research
Company Industry Respondent
SEB Financial CRM Project Manager
SKF Manufacturing VP Nordic sales
FöreningsSparbanken Financial CRM Project Manager
SCANIA Manufacturing Customer Information Manager
SKANSKA Construction Chief Marketing Officer
Source: Author's own construction.
According to Holme and Solvang (1991), the selection of respondent is crucial. If the
wrong persons are being interviewed, the research may turn out to be invalid or
worthless (Ibid). During the first contact call with each company, the intention with the
research was explained and the right person to speak with was identified. In order to
fulfill the purpose of this thesis it is of great importance to get in contact with the
persons with most knowledge and experience of working with relationships at the
companies. Since the chosen respondents at each company are perceived to be the most
appropriate persons both by their companies and themselves, we believe that this has
been achieved.
4.6 Analysis of Data
There are basically three different ways to draw conclusions, the inductive or the
deductive or the abductive way. (Alvesson & Sköldberg, 1994) Induction means that
general conclusions are drawn from empirical findings. The inductive approach is
commonly used when there are very few established theories in the field of study, and
the aim of research is to form a new theory.
- 32 -
Deduction implies the drawing of a conclusion perceived as valid if it is logically
connected. Usually in studies of a deductive nature, already established theories and
literature are used as foundation for the research. When using an abductive approach,
the researcher starts in empirical facts, as in the inductive approach but do no reject
theoretical pre-conceptions. The idea of abduction is that a separate case is interpreted
according to a theoretical overarching pattern that, if it was true, explains the case. The
observations should then be confirmed through new observations. (Alvesson &
Sköldberg, 1994) The observations from the study are then compared with the
theoretical frame of reference. (Yin, 1994) Further distinctions between the three
approaches are provided in figure 4.2.
Deduction Induction Abduction
Theory
Empirical
Regularities
Empirical
Observations
Figure 4.2 Deduction, Induction and Abduction
Source: Alvesson & Sköldberg, 1994 p.45
This research followed a deductive approach. We started by studying already
established theories within the area of different types of buyer-seller relationship and
continued with theories regarding management of customer relationships. We found it
appropriate to start with the theories to get a foundation for our research to be able to
construct the questions in the interview guide and then later on logically to try to draw
conclusions based on knowledge and empirical findings. An inductive or abductive
approach would not have been suitable to use in since it is to time-consuming.
4.7 General Analytical Strategy
Marshall and Rossman (1989) say that data analysis is the process of bringing order,
structure, and meaning to the mass of collected data. This is an important and time-
consuming part of the research. They continue to state that qualitative data analysis is a
search for general statements about relationships among categories of data; it builds
grounded theory. Furthermore it is important to realize that the samples are smaller in a
qualitative research than in a quantitative one, but it may be more subtle and complex.
That will affect the data analysis. Yin (1994) claims that every investigation should start
with a general analytic strategy, yielding priorities for what to analyse and why.
Marshall and Rossman (1989) give an analytic procedure for that data analysis will fall
into five categories:
! Organising the data: reading, reading and reading to become familiar with the data,
and during this process list on note card the data available, perform minor editing of
field notes, and "clean up" what seems overwhelming and unmanageable.
- 33 -
! Generating categories, themes and patterns: noting regularities in the setting or
people chosen for the study, identifying themes, recurring ideas or language, and
patterns of belief that link people.
! Testing emergent hypotheses: evaluate the reasonableness of the developing
hypotheses and testing them against the data; evaluate the data for informational
adequacy, credibility, and centrality; and determine if the data are useful in
illuminating the questions being explored.
! Searching for alternative explanations: search for other explanations, identify, and
describe them, and demonstrate how the explanation offered is the most reasonable.
! Writing the report: central to the process and cannot be separated from the
analytical process, because the researcher is engaged in an interpretive act while
writing.
Marshall and Rossman (1989) continue to say that each phase of the data analysis
involves data reduction to bring the collected data into manageable pieces, and
interpretation of data. This is something Miles and Huberman (1994) also talk about.
They define data analysis as consisting to three different concurrent flows of activity:
data reduction, data display and conclusion drawing and verification. They refer data
reduction to the process of selecting, focusing, simplifying, and transforming the data
that appear in written-up field notes or transcriptions. Data reduction occurs
continuously throughout the whole qualitative study. They continue to state that data
reduction is a form of analysis that sharpens, sorts, focuses, discards, and organize data
in such a way that conclusions can be drawn and verified. (Ibid.)
According to Miles and Huberman (1994), most analysis is done with words. They
identify two types of analysis, within case displays and cross case displays. By display
the authors mean:
"A visual format that presents information systematically, so the user can draw
valid conclusions and take needed action." (Miles and Huberman, 1994, p.91)
In a within case analysis, collected data will be compared with previous theory in order
to identify differences and similarities. The aim of doing a cross case analysis is to be
able to compare the single cases with each other and to increase generalizability. In a
cross case analysis, it is possible to see if the collected data in the separate cases are
diverse, typical, effective, ineffective etc. Miles and Huberman (1994) further present
matrices as good tools to visualize the collected data in order to make it easier to
compare and analyze them. Systematically structuring the collected data in logic
matrices has excellent consequences for understanding. (Ibid.)
In this research, both within case analyses and a cross case analysis will be conducted.
First, each case will be analyzed separately and compared with previous theory. This
analysis will follow the same structure as the frame of reference. Second, the two single
cases will be compared with each other in a cross case analysis, following the same
structure as the frame of reference. Matrices, in the form of tables and figures, will be
used in order to visualize the collected data for a better understanding for the reader, as
recommended by Miles and Huberman (1994).
- 34 -
4.8 Quality Standards: Reliability and Validity
According to Eriksson and Wiedershiem-Paul (1997), there are two important criteria
that can be used to determine the quality and trustworthiness of a research. These are
reliability and validity. In order to obtain validity the researcher should ask himself the
question Do I in my research with this choice of method measure what I intend to
measure? Reliability is defined, as a measuring tool ability to give stable and reliable
data. When measuring the reliability the researcher should ask himself: Would I get the
same or similar result if I were to use the same techniques repeatedly? (Ibid.)
The goal of reliability is to minimize the errors and biases in a study. The objective is
that if a later researcher follows the same procedures as described by a previous
researcher and conducts the same case study all over again; the later researcher should
arrive at the same findings and conclusions as the previous. One prerequisite for the
researcher to be able to repeat a previous case study is that the procedures followed in
the earlier case are documented. Hence, a good guideline is to conduct the research so
that an auditor could repeat the procedures and arrive at the same results. (Ibid.)
In this study, we have tried to map out the procedures involved in detail throughout the
study. Firstly, we have tried to develop clear research question that guides the research.
Secondly, the steps that have been taken in order to collect data on these research
questions have been thoroughly described in this chapter. Furthermore, the respondents
have been sent a base of information regarding the area of research and overall purpose
for this thesis before the telephone interview. An interview guide was developed,
showing how we have conceptualized the research questions (see appendix B).
However, despite these attempts of maintaining a high reliability in this study, personal
biases are always present to some extent when conducting interviews. Hence, we cannot
be sure of the influence of attitudes and values of the respondents and us in the study.
Eriksson and Wiedershiem-Paul (1997) claim that validity is the most important
requirement on a measurement instrument. According to Yin (1994) there are three
kinds of quality tests regarding the validity of a study. These are described below:
! Construct validity can be defined as "establishing correct operational measures for
the concepts being studied".
! External validity concerns "establishing the domain to which a study's finding's can
be generalized".
! Internal validity refers to "establishing a causal relationship, whereby certain
conditions are shown to lead to other conditions, as distinguished from spurious
relationships". (Yin, 1994, p.33)
Yin (1994) notes that internal validity only applies to explanatory and causal studies and
not for descriptive studies. Since this research is mainly descriptive, the test of internal
validity will not be discussed in relation to this study. Table 4.4 shows the tactics that
can be used in the tests of the quality of construct and external validity.
- 35 -
Table 4.4 Case Study Tactics for Construct and External Validity
Tests Case Study Tactic Phase in which Tactic Occurs
Construct Validity
Use multiple sources of
evidence
Establish chain of evidence
Have key informants review
draft case study report
Data collection
Data collection
Composition
External Validity
Use replication logic in multiple
case studies
Source: Adapted from Yin 1994, p. 33
In relation to the construct validity of this study, the principle of "triangulation", i.e. use
of multiple sources of evidence, is followed. Both documentation and interviews are
used to collect data. Furthermore, both notes and a tape recorder were used when
documenting the interview. Effort was also put into identifying the proper person to
interview. However, the interviews were conducted in Swedish and then translated into
English, which includes the risk of translation errors.
Regarding the second tactic, the establishment of a chain of evidence, this study builds
upon existing theories related to our research questions, and follows this base
throughout the research. Hence, the data collected on the research questions are derived
from this base. However, in spite of our precautions, relevant literature can have been
overlooked, which might have an impact on the validity. To fulfill the third tactic, our
supervisor has reviewed this study continuously throughout the whole process.
Feedback from these reviews has allowed for revising of the material. Furthermore,
feedback has also been received from the respondents as they have reviewed the data
collection. Regarding the external validity and to what extent the findings can be said to
be generalizable, Yin (1994) notes that case studies do not rely on statistical
generalization as with surveys, but analytical generalization. Analytical generalization is
concerned with generalizing a particular set of results to some broader theory. (Ibid) In
this study, a multiple-case study of five companies has been conducted, which might be
considered to give a better base of generalization than a single-case study.
- 36 -
5. Empirical Data
In the previous chapter, the methodology of the research was discussed. In this chapter,
the empirical data collected from each of the companies investigated will be presented.
The five companies investigated are Skanska AB, Svenska Kullager Fabriken AB,
Scania AB, Skandinaviska Enskilda Banken AB and FöreningsSparbanken AB. In the
empirical data presentation, the interviewees will be referred to as the respondent or by
company name. The data is collected based on our conceptualization and frame of
reference in chapter three. Each section will start off with a short company background,
and thereafter, the data collected from the interview will be presented. The empirical
data is presented in a manner that addresses the three research questions of this study.
5.1 Skanska AB
Since it's founding in 1887, Skanska has established a global network of operations in
more than 60 countries. Sweden, the US, UK, Denmark, Finland, Norway, Poland, the
Czech Republic, Argentina and Hong Kong are Skanska's main markets. The Skanska
group has approximately 85,000 employees. The head office of Skanska is located in
Stockholm. (Skanska, 2001) The company business mission of Skanska is:
"To develop, build and service the physical environment for living, working and
traveling. Through combining the company's resources in these areas the
customer can be offered attractive, cost effective and thereby market competitive
solutions. (Skanska, 2001, p.6)
Skanska states that the vision for the company is:
"To be the world leader - the customer's first choice - in construction services
and project development." (Skanska, 2001, p.6)
This is further supported with the implemented strategy; to focus on the customer's
needs and create long-term relationships and develop the best management, knowledge
and processes. Skanska's operations are aimed at satisfying people's need for housing,
work environments and communications opportunities. Skanska is active throughout the
value circle - everything from small building service contracts to assuming total
responsibility for identifying and solving the customers' long-term needs of
construction-related services. (Skanska, 2001)
Skanska presented in 1991 a company wide program called 3T to increase its efficiency
and quality. The 3T stands for total time thinking and was a program to reduce the time
used in the company's processes. The idea is basically about a focus on doing things
right from the beginning and also to reduce the time used by better planning. The 3T
had its origin from Total Quality Management (TQM) and was a response from
customer demands on higher quality and shorter construction times. (Skanska, 1992)
In terms of company structure and organizational chart, the company is divided into
three different business units: project development, construction services and new
businesses (Skanska, 2001) See figure 5.1.
- 37 -
Figure 5.1 Organizational Chart of Skanska
Source: Skanska, 2001, p.16
5.1.1 The Objectives with CRM in Skanska
Skanska has according to the respondent approximately 15 000 customers on a yearly
basis and many of them are large governmental and public institutions. Therefore, many
offers have to cope with the laws and regulations regarding governmental purchases.
Skanska's goal with CRM is to create potential for their employees around the
organization with a system that actively support the marketing and sales work. The
respondent stresses that the system is not intended for the executive management level,
instead focusing on the employees. The reason for CRM in Skanska is that the company
is working on a mature market and because the company handles a lot of customers and
project, they need to have these issues organized.
Skanska's major objectives with CRM are to improve win rates, since the company
withdraws from unlikely or bad deals earlier in the sales process. There are today about
20 000 potential offers that Skanska can place a bid on and therefore; every
improvement in win rates constitutes an increase in revenue. Moreover, another major
objective with CRM is to decrease general sales and marketing administrative costs due
to that the company has a good knowledge about its target segment customers. Thereby
the company is using its resources better when no effort is a waste of money or time.
Corporate Staff
Skanska Financial Services
Skanska TeknikSenior Executive Team
New BusinessesProject Development Construction Services
Skanska Sweden
Skanska Project Development Europe
Skanska Project Development USA
Skanska BOT
Skanska Project Development Sweden
Selmer Skanska
Skanska Denmark
Skanska OY
Exbud Skanska
IPS Skanska
Skanska UK
Skanska USA Building
Beers Skanska
Skanska International Projects
SADE Skanska
Skanska USA Civil
Skanska Services
Skanska Networks
- 38 -
Skanska has other objectives with CRM that also are important but that they do not list
them as major objectives. These are for instance, to assure customer loyalty by
providing after-sale service/support and to measure results and proving return on
investments. Furthermore, the respondent states that Skanska uses integrated
information in order to create excellent services for their customers
Minor objectives with CRM in Skanska is to increase margins, resulting from knowing
your customers better, providing a value-sell, and discounting price-less. This implies
mostly on the small customers and not the large governmental and public customers.
Moreover, the company can establish personal relationships with the customers that are
interested in this but CRM is also used to understand the relative importance of specific
values to each customer segment and to determine if delivery of those values will affect
in a positive manner.
To improve customer satisfaction rates due to that customers will find that the offer is
more in line with their specific needs is today not a goal since the now established CRM
system does not facilitate that. Since Skanska has over 15 000 customer on a yearly
basis it is a problem to identify the customer values that are pertinent to a particular
segment. However, towards public and governmental customers, this is possible since
they are rather few in numbers. Skanska presents no own stated objectives with CRM.
The goals with CRM in Skanska are presented in table 5.1
Table 5.1 Objectives with CRM in Skanska
Objectives None Minor Medium Major
Decrease general sales and marketing administrative
costs

Measuring results and proving return on investments 
Communicating and delivering the appropriate values to
each customer in ways the customer wants to receive the
information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will affect in
a positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Improve customer satisfaction 
Identifying those customer values that are pertinent to a
particular segment.

Understanding the relative importance of customer
values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
- 39 -
5.1.2 The CRM Process in Skanska
Skanska is according to the respondent a company that uses a mix of both relationship-
oriented focus as well as transactional focused. This implies that the company towards
its largest customers uses a transactional view. These customers are referred to as
governmental and public customers, where price matters. The reason for this is
according to Skanska that these customers must follow the laws and regulations of
governmental purchases and here price is the major variable that matters. However,
established personal relationships have a great importance since this increases the hit
rates i.e. received customer orders. In comparison, Skanska holds a relationship focus
concerning the smaller customers. This sort of relationships can have been ongoing for
several years or decades.
In terms of what are the most important activities in the custodian of the customer base,
the respondent states that this is to identify the needs of the customers; both conveyed
and not disclosed needs. Without those needs identified, Skanska cannot deliver
customer value or customer satisfaction. When addressing the issue of the customer is
an active or passive part in the sales process, Skanska insists that the customer is always
right, and has therefore the right to be passive. It is therefore up to the company to take
the initiative in the buying or selling process, which in this case starts with the creation
of a formal offer as a answer to a customer's request. However, Skanska always tries to
make the customer more active and by doing so receiving their preferences, wants and
specific requirements.
Skanska has no marketing organization that goes across the organization. Instead a
manager in the production has a marketing and sales responsibility in their area of
expertise and geographical location. That manager is also handling all customer
relationships connected to his responsibility. By including marketing in production can
Skanska provide the customer offers that are not only based on price, when the ability to
set up the right project group with the right competences and social skills also are
important features that attract the customer. Earlier construction projects also work as a
good reference in the sales process. Logistics is another part that is integrated into
production and have a low impact on customer satisfaction except in the field of ballast
were it has an great impact on both customer satisfaction and profitability.
The company takes use of the information received from the customer systematically,
this referrers to the registration of each customer interaction or meeting that occur and
that those events are logged in the data system, expressing what has been said, decided
or planned. After this everyone that needs that information can log on and receive
necessary data. Most of the customers' interaction is with the members of the team that
Skanska has assigned for the project. This interaction can be via letter, e-mail, stationary
and cellular telephones, and fax machines and also by meeting the customer face to
face. In terms of if the company has access to customer information generated in
different distribution channels, the answer is yes. However, how Skanska uses this
information is a question that the respondent would not answer based on the company
believe that this should be kept confidential. This is also the situation in regards to how
the customer analysis process is structured. The respondent disclosed that the company
uses key figures in terms of loyalty, frequency and volume of purchase etc but would
not go deeper into the subject based on the believe that this is critical information for the
company.
- 40 -
According to Skanska, the market planning of the company is conducted on each
regional market, since the company believes that there is a large difference between
each market segment/region and therefore the market planning needs to focus on
different aspect based on what region it is referred to. Relationship planning is also an
important activity where the company has to decide what sort of relationship that is
important to have or disclose. The interaction with the customers of Skanska is mainly
personal meeting and since Skanska approaches the customer, that have initially
expressed their wants and needs when formulating the offer request, its up to Skanska to
sell in their solution that fulfills these objectives.
5.1.3 CRM´s Affect on the Organizational Structure in Skanska
The existing organization and its structure was a basis for the construction of a CRM
system in Skanska. The respondent stressed that this was an important prerequisite for a
successful implementation of CRM in Skanska's operations when working tasks and
procedures remained the same as before the implementation. CRM has according to the
respondent not affected Skanska's organizational structure regarding shape,
departmentalization, distribution of power, or division of labor. The information process
has been affected by CRM in that sense that marketing plans is more precise than
before. This is due to that the company now has more customer information that
provides a clearer picture of the market. Skanska has also now a better base for making
the right prioritizations regarding projects and customers.
There has been no affect from CRM in the area of human resource management. The
respondent also stated that there had been no changes in the reward system concerning
compensation and promotion issues due to the implementation of CRM. The
interdependency and uncertainty between organizational units, and the diversity among
them remains the same has before the implementation of CRM. Skanska has put more
effort into recruiting customer-oriented employees than before, but still the most
important criteria when hiring a new employee is his or her capability to do the work
The company has made some alterations to ease the flow of information between
employees and departments. Previous, the information stayed at the person who
received it but the computerization of information has led to increased availability.
Skanska has today not replaced a lot of employees to enforce a more customer-focused
organization. Instead, Skanska has conducted training on CRM during the last years.
The respondent has as chief marketing officer been responsible for this activity and has
also been the one lecturing in the topic. All sort of positions from secretaries to district
managers have been attending this training program.
Skanska has a decentralized management style that enables each employee to take
initiative in his or her work towards the customers. This is seen as a prerequisite for
success when all-important decisions must be taken close to the customer in the project
management team. Up till today CRM has had no impact on the roles in Skanska's
marketing organization. In Skanska it is the chief marketing officer that coordinates the
business process at a central level and by the district managers at a local level. The
district managers also have the responsibility to identify business opportunities and to
keep up with coming construction projects that customer in his area is planning for.
Based on these activities he sets up a team that creates a solution based on the
customers' specifications for the project. The project team then presents this solution to
the customer and will later on handle the interaction, if Skanska is selected.
- 41 -
5.2 Svenska Kullager Fabriken AB
Svenska Kullager Fabriken AB - SKF was founded in 1907 and was from the very
beginning focused intensively on quality, technical development and marketing. Today
it has its own sales companies in 70 countries, supported by some 7 000 distributors and
dealers, e-business market places and global distribution system. SKF is always close to
its customers for the supply of both products and services and have a clear stated
customer focused strategy. The manufacturing facilities are located in 22 countries and
the total number of employees is approximately 38 500. According to the company's
investor relations department, SKF has not stated any business mission or vision.
Instead, the company has defined financial targets and these are to reach an operating
profit of 4 billion SEK and a operating margin of 10%. According to SKF, the key
factors to be successful in this line of industry are to have high level of ingenuity, quick
market response and close cooperation with customers and other companies to create
new and innovative solutions for the market. (SKF, 2001)
The four cornerstones of the strategy to reach these targets are:
! Service. To develop and increase the service business by selling predictive and
preventive maintenance, trouble-free operation, condition monitoring, reliability
engineering and productivity improvements in process industries. (SKF, 2001:1)
! Trading. To further develop e-business and buy complementary products to be able
to offer customers complete solutions. To sell more of SKF's expertise and skills
with regards to logistics and technology, etc. (SKF, 2001:1)
! Electronics. To further integrate electronics and software competencies in bearing
and sealing technology in order to develop customized solutions for demanding
applications. SKF's sensor technology has already been introduced in a number of
applications, and more is being developed. (SKF, 2001:1)
! Partnership. To enter into partnerships with customers and other companies in order
to gain competitive advantages by combining technological expertise and know-how
and/or by creating joint manufacturing activities. (SKF, 2001:1)
The SKF business is organized in six Divisions, Industrial, Automotive, Electrical,
Service, Seals and Steel. These six divisions focus on a specific customer segment in
order to deliver a high level of customer services (SKF, 2001:1) See figure 5.2.
- 42 -
Figure 5.2 Organizational Chart of SKF
Source: SKF, 2001, p.12
5.2.1 The Objectives with CRM in SKF
The main objective for SKF in their work with CRM is to create and store customer
information at one central spotting. This information is the foundation for their base of
customer knowledge. The gained customer knowledge is a vital tool for various
individual SKF employees to increase the efficiency when meeting one of SKF's
customers. The customer knowledge consists of information regarding buying behavior,
user demands and service demands.
SKF has several CRM objectives in the area of sales. One is to increase sales revenues,
when more time is spend with customers and less time is spend on collecting
information about the customer. This also gives higher win rates, since the company is
able to withdraw from unlikely or bad deals earlier in the sales process. In the area of
sales is reducing administrative costs also an objective when the gained customer
knowledge can be used more effectively. SKF also view CRM as an important tool in
their work focusing on increasing margins, resulting from better customer knowledge
enabling a value-sell, and lower need for price discounting. Which is also in line with
the improvement of customer satisfaction rates due to that customers will find that SKF
product and service offers is more in line with their specific needs. By doing this can
customer loyalty by providing after-sale service/support be assured. Furthermore, the
information received from the customers can be integrated and used to create a high
service level.
CRM also support SKF in creating personal relationships with its customers. One
important objective with a relationship is the feedback that will be looped back from the
customer to the company. Furthermore SKF highlights the importance of the ability to
communicate and deliver the appropriate values to each customer in ways the customer
wants to receive the information. Moreover, the company believes that by selling to
existing customers, the company can grow revenue. The theoretical proposed objective,
determining if delivery of customer values will affect in a positive manner is not an
objective according to SKF since their CRM system does not support this objective.
The company has not identified any other objectives with CRM. The objectives with
CRM for SKF AB are presented in table 5.2
CEO
Finance
Business Development
Quality & HR
Technology Development
Communication
Legal
Automotive Service SealsElectrical Industrial Aerospace
& Other
Businesses
Steel
Germany USA
- 43 -
Table 5.2 Objectives with CRM in SKF
Objectives None Minor Medium Major
Decrease general sales and marketing administrative costs 
Measuring results and proving return on investments 
Communicating and delivering the appropriate values to
each customer in ways the customer wants to receive the
information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and procedures 
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will affect in a
positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Improve customer satisfaction 
Identifying those customer values that are pertinent to a
particular segment.

Understanding the relative importance of customer values
to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
5.2.2 The CRM Process in SKF
SKF has according to the respondent a long tradition of producing and supplying
customers in different industries with rolling bearing and seals. Therefore the company
has established relationships with its customer that in many occasions has been going on
for decades. SKF also stresses the importance in their TQM manual of putting the
customers need first in every decision by stating "It is the customer's perception of our
performance that determines our success" (SKF, 2001:1). Both the respondent and the
TQM manual state that SKF to meet this ambition has organized itself around customers
and not around products.
People from logistic and production functions are not directly involved in the marketing
process. Indirectly the have a great impact when quality of products and delivery is
important factors influencing customer satisfaction and thereby the customers image of
the company. SKF views the customer as both an active and passive part in the sales
process. The customer can be described as active when he set new demands on SKF
products to meet up to his requirements. The company retrieves customer information
through several channels, such as: own sales force, distributors, service personnel, call-
centers handling services and complaints. All customer contacts through these channels
are registered electronically or, when a report is being made after a personal interaction
with the customer. SKF has not directly access to the customer information generated in
the distribution channel. Here SKF has to rely on information that their own sales
people snap up during visits at distributors and on customer surveys. These surveys
gives information about customer requirements on development of new products and
services as well as a picture of customer satisfaction and SKF's image position.
However, SKF has today the ability to store information form the customer trough
different channels but lacks the possibility to transfer this information across national
- 44 -
borders. There is today an ongoing process within SKF to primarily interlink the
European activities, but secondly to link SKF globally.
The respondent states that SKF customer analysis is an ongoing process based on earlier
interactions with the customer. The aim is to meet the customers' expectation better in
the future. Because the process is ongoing it is difficult to state particular phases in the
process. SKF uses a key account management approach when handling important
customers. Special sales teams are handling the interaction with important customers
and the atmosphere is of a personal character. These customers often have an EDI
solution where they can put orders to SKF. When dealing with small customers SKF
uses interaction via telephone, fax machines, and call centers as a major tool in sales
and service. SKF has provided Internet as a point of contact for their customers. Via the
web site: www.skf.com can customers receive product information and also make
technical calculations on bearings and seals. The company also has an e-business site
named endorsia.com focusing on small and mid-sizes customers. The aim is that
received information from earlier interactions shall work as a base for future
customization. The market planning is primarily focusing on increasing the market
share. The company's way to reach this objective is by selling more to already existing
customers and also by attracting new customers. CRM is an important tool in the sale
process supporting the salesman in his or her work by providing information about the
customers' earlier product purchases, including services and maintenance done by SKF.
5.2.3 CRM´s Affect on the Organizational Structure in SKF
The implementation of a CRM strategy in SKF has not affected their organizational
structure regarding division of labor, departmentalization, shape, or distribution of
power. The information and decision process has not either been affected by this
implementation and so are also the case in the field of human resource management and
reward systems. Since no organizational change has taken place in SKF the relationship
between organizational units has remained unchanged.
Like many large company's, SKF has made efforts in easing the transfer of information
by making a large portion of it electronically. In terms of employees, SKF put effort in
recruiting customer-oriented employees and also to train sales and service personnel in
sales support systems and on how to meet the customer. The respondent stressed the
importance of that the people with customer contact must be interested and positive in
providing service towards the customers. The company put a lot of effort into improving
quality, and according to SKF TQM manual this activities starts at the individual level
in a work team. First of all, when recruiting SKF valuates the applicants competence
that is necessary in the specific job tasks. Thereafter the applicant's degree of customer
focus is taken into consideration.
There has been no reorganization due to CRM and SKF has not made any alterations to
ease individual employees handling of customers. In SKF the channel manager has the
responsibility to coordinate the business process and the interaction with the customer.
Key issues here are to identify the right customer and business opportunity and
thereafter to create the right offer and to decide when the offer shall be presented for the
customer. The channel manager also handles the customer interaction. The personnel in
SKF that have received training or education on CRM are mostly sales personnel that
have been using the system for sales support during the last 10 years.
- 45 -
5.3 Scania AB
Scania is the world's fourth largest manufacturer of heavy trucks. In Europe, Scania is
the second largest and in Latin America the leading one. Scania is also the world's
fourth largest manufacturer in the heavy bus segment. Scania is an international
corporation with operations in more than 100 countries. Ninety-seven percent of its
production is sold outside Sweden. The number of employees is 26 900 and the head
office is located in Stockholm. Scania's industrial operations specialize in developing
and manufacturing vehicles, which shall lead the market in terms of performance, life-
cycle cost, quality and environmental characteristics. (Scania, 2001) Scania's business
mission is:
"To supply its customers with vehicles and services related to the transport of
goods and passengers by road. By focusing on customer needs, Scania shall
grow with sustained profitability, thereby generating shareholder value."
(Scania, 2001:1)
Scania's vision is:
"To be the leading company in its industry by creating lasting value for its
customers, employees, shareholders and other stakeholders." (Scania, 2001:1)
To further state their customer focus, Scania's commercial operations, which include
importers, dealers and service points, shall supply customers with optimal equipment
and after sales support, thereby providing maximum operating time at minimum cost
over the service life of their vehicles. By focusing on customer needs, Scania shall
create value-added for the customer and grow with sustained profitability. Scania
stresses that by doing so the company generates shareholder value. In April 1996 Scania
was listed on the stock exchange in Stockholm and New York. (Scania, 2001:1) In
terms of organization, Scania is divided into three different business areas and they are
further presented in their organizational chart, see figure 5.3.
Figure 5.3 Organizational Chart of Scania
Source: The Respondent
CEO
Group Management
ServiceTrucks & Buses FinanceSales &
Marketing
Communication
IT
New Markets
Marketing Strategy
Market Support
Franchise Development
HRM
- 46 -
5.3.1 The Objectives with CRM in Scania
According to Scania, the objective with CRM is to strengthen the relationship with their
customers. The respondent further states that it is the profitable relationships that the
company focuses on. This implies that the company needs to switch their time span of
the relationship from previous when the length was equal to the product life cycle. Now,
the company sees relationships in a longer time span and focuses more on the customer
life cycle.
Furthermore, the respondent states that the unprofitable customers are something that
the company tries to alter and transform them into profitable ones, but if this is
something that is not possible, the company feels no urge to keep these customers. In
short, the respondent states that long-term profitability is the most important reason for
why Scania uses CRM in the company. Moreover, by creating a long-term mutual
beneficial relationship with the customer, Scania ties the customer closer to the
company giving them a better communication and possibility to keep the customer.
The reason for CRM in Scania are numerous and of different importance. According to
the respondent, the major objectives with CRM are to assure customer loyalty by
providing after-sale service/support, this implies that the relationship has only begun
when Scania sells the truck to the customer and therefore there is an essential need that
the after-sales activities in terms of services and support is in line with the customers
preferences.
Major objectives with CRM for Scania are also to increase margins and increase win
rates. The first one is a result from knowing your customers better, providing a value-
sell. Since the customer is aware of Scania as a company, the urge for mere price
focusing is not primarily important. Secondly, increased win rates are created since the
company can withdraw from unlikely or bad deals earlier in the sales process since they
know their customers to a greater extent. CRM are also used to increase Scania's
service offering towards the customer. By taking over a part of the customers risk by
providing finance and insurance solutions, can Scania increase its margins and total sale
revenue, at the same time as its service offerings towards the customer is increased.
Other major reasons for CRM in Scania is according to the respondent to improve
customer satisfaction rates due to that customers will find that the offer is more in line
with their specific needs. This is also a result of better knowledge about customer
preferences and needs. Moreover, the company focuses on building personal
relationships with the customer, which will provide the company with growth in
revenue and feedback. This information can then be used to create a high level on the
service and support functions.
The company has other reasons for CRM that are of importance but not to the same
extent as the above stated. These are according to the company to decrease general sales
and marketing administrative costs due to that the company has a good knowledge
about its target segment customers but also to use CRM to measure return on
investments. Moreover, the company sees that one important goal with CRM is to
handle the area of customer values i.e. identify customer values that are pertinent to a
particular segment, understand the relative importance of those values to each customer
segment and determine if delivery of those values will affect in a positive manner.
- 47 -
Furthermore, the respondent says that it is important to create unified processes and
procedures in Scania. Therefore, the company has a system called Dealer Operating
System ­DOS in order to raise and create consistent customer interactions despite which
dealer the customer interacts with. Finally, Scania states that their goal with CRM is not
to increase sales revenues instead they are focusing to satisfy the customers' needs and
by doing this well they customer has incentives to be a loyal customer in the future. The
respondent stated that Scania has no other goals with CRM than the theoretical
presented.
Table 5.3 Objectives with CRM in Scania
Objectives None Minor Medium Major
Decrease general sales and marketing administrative
costs

Measuring results and proving return on investments 
Communicating and delivering the appropriate values to
each customer in ways the customer wants to receive the
information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will affect in
a positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Improve customer satisfaction 
Identifying those customer values that are pertinent to a
particular segment.

Understanding the relative importance of customer
values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
5.3.2 The CRM Process in Scania
Scania is putting a lot of effort in being a relationship-oriented company. The primarily
objective is to get long-term profitability in their operations. The custodian of the
customer base is managed by local dealerships and by the distributor for that specific
market. Scania has a philosophy that not interfere to much into a distributor or a dealers
activities, this is due to that it is them and not Scania that holds the best knowledge of
the customer and local market conditions.
These activities can be very different in kind since they are tailored to meet the
customer and the conditions at each market. The activities have one thing in common
they are all focusing on the vehicle and on the service hubs stressing that they enables a
good reliability and short stand for service. However, these activities must be in line
with Scania's overall marketing strategy. Scania role in the custodian of the customer
base is mainly to coordinate the independence in the chain of distribution.
- 48 -
Scania as very simplified two sorts of customers: few-vehicle customers and fleet
customers. The few-vehicle customers drive and own their vehicles. This type of
customer can be either active or passive in the sales process depending on his
preferences and financial status. It is not unusual that a salesman from the local
dealership takes the initiative in the sales process by starting up a dialogue with the
customer. This segment is by tradition Scania's strongest and the customers are valued
high in Scania. The fleet customers can have several hundreds of vehicles in its fleets
and have special departments for handling purchases of new cars and services. They are
a very active part in the sales process and they hold a great knowledge as users. This
lead to that they can specify their demands on the new vehicles.
Scania also use a key management approach with special sales team on especially the
distributor level to treat this type of customers. Marketing, production, and logistics
functions are working closely in the product development process. Especially the ability
to deliver on time is stressed by the customers. It is important according to the
respondent to increase the amount of customer information and to make it available for
the people at Scania and its dealerships that need the information. The awareness of the
importance of this is increasing in Scania and among its dealerships. The dealership has
a very good knowledge of their customers' needs and wants.
It is difficult to transfer the customer information due to cultural issues, and legal issues.
Therefore is the customer information at the distributors not at all as comprehensive and
accurate as on the dealership level and its even less at Scania headquarter. The
respondent sees this as a problem that is diminishing in size when the awareness of
customer information increases. This is a minor problem, which is natural since the one
closest to the customer has the clearest picture of the customer. It had been worse if it
had been the opposite. Scania has access to information generated from its distribution
channels including independent satellite workshops. Scania has also put a lot of effort
into forward integration in their chain distribution. Scania's strategy has been to acquire
the distributor in each market and to acquire dealerships that are of strategic importance
in the local markets. By doing this they have come closer to the end users and thereby
they have increased their ability to become customer focused.
The salespeople at the dealership are doing the customer analysis automatically when
they have the best knowledge of their own customers and theirs needs for products and
services. The process can be divided into some basic steps first Scania have to decide
what customers they are aiming after. In the next step Scania uses there stored
information regarding this customer. If the customer is new Scania has to collect
information about his needs and wants. In the next step Scania try to use the collected
information to fulfill and meet the customers expectation. Scania's marketing planning
is focusing on a variety of different activities. This is due to Scania is operating on a
number of different markets that all has its unique conditions. How Scania's marketing
plan looks like is also affected on how Scania's organization is structured on that market
as well as. Scania's interaction with its customer is mostly conducted through its
dealerships and service hubs and other workshops. The interaction can also be a
response on direct marketing campaigns and by visits or phone calls from salespeople
from the dealerships. Invitations to road shows and product development clinics or
visits to production plants are also tools that enable interaction. All this interactions is
registered in the CRM database as a base for future interactions. Moreover the Internet
has become a point of contact where customers for instant can buy used vehicles.
- 49 -
5.3.3 CRM´s Affect on the Organizational Structure in Scania
CRM has affected Scania's organizational structure in several ways. The product
development is now being conducted in a "clinic" with closer cooperation with the
marketing function than before. In this clinic are several of Scania's core competences
working together to develop new products in cooperation with customers that are
invited into the clinic, so that they can express their needs and wants in an early stage in
the development of a new product.
Scania has also since 1995 put a lot of effort into forward integration in their
distribution chain. Scania's strategy has been to acquire the distributor in each market
and to acquire dealerships that are of strategic importance in the local markets. Today
Scania control its distributors in the European markets expect Portugal, Ireland, and
Iceland. However, the impact from CRM on production units has according to the
respondent been relative small.
In Scania the ambition to become more customer focused has lead to customer
cogitation in the information and decisions processes regarding planning and control,
budgeting and performance measuring. Customer satisfaction has become one of the
most widely used criteria on how to measure Scania's performance.
The customer has stressed that delivery on time is an important criteria so therefore is
the ability to deliver on time an important issue when deciding bonuses for Scania's
personnel. When addressing the issue of automation, Scania stresses that the company
has engage in activities to make information available to their employees. The company
is putting more effort into making the customer information more accessible. The
respondent states that Scania educates and train their employees in an internal education
system, called the Marketing academy. The focus is on training and education of the
distributors in the company's marketing philosophy and strategies. It is then up to each
distributor to transfer this knowledge to individual dealerships.
A Customer centric mind is not a stressed objective when selecting and recruiting new
employees at Scania. The respondent views this criterion as so obvious and naturally
that it is unconsciously a part in the candidate profile in the recruitment and selection
process. Recruiting customer focused employees in all business, and production
functions have been a natural thing during the last 10-15 years and especially since
Scania become independent from SAAB in 1995. The respondent states that the
company has not made any alterations in their leadership style to ease the possibilities
for each customer interacting employee to adjust in order to meet customer demands.
The company states that in terms of coordinating marketing actitivities it is the regional
manager, in this case the distributor that are in charge. The distributor or retailer is also
responsible for the identification of right customer, creation of the right offer and
deciding the right time to present the offer. They are also responsible for the customer
interaction, except when large international customers are handled, which is done on a
central level.
- 50 -
5.4 Skandinaviska Enskilda Banken AB
André Oscar Wallenberg founded Stockholm's Enskilda Bank in 1856, the first
appearance of the bank. In January 1972, Skandinaviska Banken merged with
Stockholms Enskilda Bank into the new bank, Skandinaviska Enskilda Banken - SEB.
Today, SEB is a European financial corporation primary for companies and financially
active private persons. The Group is represented in some 20 countries around the world
by 670 offices and has approximately 21,000 employees. The company has a total of
four million customers, and 800 000 are Internet customers. By December 2000 the
company had administered capital to a total value of 910 billion SEK. The company
headquarter is located in Stockholm. The business mission of SEB is:
"SEB's business concept is to create value for customers and shareholders
through leading competence and long-term relationships. " (SEB, 2001,p.7)
The vision of SEB is:
"To be the leading "e-centric" customer-driven supplier of financial services in
Europe." (SEB, 2001, p.6)
In a short period of time SEB has changed, from doing "everything for everybody"
particularly in Sweden, to being a supplier of financial services for well-defined target
groups in Europe. The company focuses on creating value for the customers in order to
retrieve profitable customers and thereby higher profit. In order to come up to these
expectations and demands, SEB must have a good knowledge about its customers,
develop its relations with them and manage its business according to their demands. All
alternative ways of contact must be used in order to offer maximum accessibility.
During 1999, the overwhelming part of SEB's staff and customers were in Sweden,
where also most of the income was generated. Today, more than half of both employees
and customers are outside Sweden and 57 per cent of gross income originated from non-
Swedish markets compared with 27 per cent in 1999. The company is organized into the
following divisions Nordic Retail & Private Banking, SEB Germany, Corporate &
Institutions, SEB Invest, SEB Trygg Liv, The Baltic & Poland, which is presented in
figure 5.4. (SEB, 2001)
Figure 5.4 Organizational chart of SEB
Source: SEB, 2001, p.11
Group Chief Executive
and President
Staff functions
Nordic
Retail &
Private
Banking
The Baltic
& Poland
SEB
Invest
SEB
Germany
Corporate
&
Institutions
SEB
Trygg Liv
- 51 -
5.4.1 The Objectives with CRM in SEB
SEB main objectives with CRM are to improve the process to communicate with the
right customer and to provide each customer the right offer through the right channel at
the right time. By doing this SEB uses the right resources towards the right customers
hereby can the customer receive satisfaction on, for the SEB, a cost efficient way.
SEB is today striving from a product-oriented structure and strategy towards a customer
focused one. SEB started this journey several years ago and according to the respondent
CRM thoughts has gain a stable ground in SEB, but still there are a lot of work before
the final destination will be reached. Today each business area has its own business
mission and vision and these are not always concordant and in line with the other
business areas objectives. The organizational structure, with several business areas and
production units can also work as an obstacle when turning the focus on the customer.
The respondent claims that SEB and its business is moving closer to their customers in a
manner that some times can be described as small step forward and sometimes two step
backwards; but the long term direction is toward a customer focused structure. The
benefits of a CRM approach that SEB is striving towards are higher levels of customer
retention and higher profitability per customer. SEB has very high stated objectives with
its use of CRM. The reason for this is that SEB see this strategy as the foundation for
future competitiveness of the company. Therefore, they regard the following activities
as very important:
! To increase sales revenues, resulting from spending more time with customers,
which results from spending less time collecting information about the customer.
! To increase win rates, since the company withdraws from unlikely or bad deals
earlier in the sales process.
! To improve margins, resulting from knowing your customers better, providing a
value-sell, and discounting price-less.
! To improve customer satisfaction rates due to that customers will find that the offer
is more in line with their specific needs.
! To decrease general sales and marketing administrative costs due to that the
company has a good knowledge about its target segment customers. Thereby the
company is using its resources better when no effort is a waste of money or time.
! To build personal relationships with the customer, which will provide the company
with feed back.
! To reach economies of scale by mass customization.
! To assure customer loyalty by providing after-sale service/support.
! To identify those customer values that are pertinent to a particular segment.
! To understand the relative importance of those values to each customer segments.
! To determine if delivery of those values will affect in a positive manner.
! To communicate and deliver the appropriate values to each customer in ways the
customer wants to receive the information.
! To measure results and proving return on investments.
! Introducing consistent, replicable processes and procedures
! Use existing customer relationship to grow revenue
! Use integrated information for excellent service
- 52 -
These above stated objectives with CRM are further presented in table 5.4 and SEB has
according to the respondent no other objective with their CRM activities.
Table 5.4 Objectives with CRM in SEB
Objectives None Minor Medium Major
Decrease general sales and marketing administrative
costs

Measuring results and proving return on investments 
Communicating and delivering the appropriate values to
each customer in ways the customer wants to receive the
information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will affect in
a positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Improve customer satisfaction 
Identifying those customer values that are pertinent to a
particular segment.

Understanding the relative importance of customer
values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
5.4.2 The CRM Process in SEB
According to the respondent, SEB is today more transactional oriented but are moving
more and more towards a relationship oriented view. SEB could, according to the
respondent been even more relationship oriented if the company had executed the
intended CRM effort that was planned to integrate CRM in the whole organization.
However, the executive board felt that the company was not ready to fully transform the
company to a CRM structured organization and therefore postpone the project.
SEB has identified two important activities in the handling of the customer base. Firstly,
on a central level conduct analysis in order to find the right and profitable customers.
Moreover, to develop new customer handling processes to ensure good and high service
level in the customer contacts with the already established customers. Secondly, on a
local level, the most important activity is to have good knowledge in regards to the
customer base, and this is something that SEB has, according to the respondent. There
are situations where centrally planned activities are being used on a local level.
In regards to the customer's activeness or passiveness in the sales process, the customer
is regarded as an active participant. This is due to that the customer is closely involved
in the actual production of the service or product. This implies that the company must
have an open dialogue where the customer is given space to express his or her wants
and needs. This is also affected by which channel the customer interacts with the
- 53 -
company and therefore, the analysis of the customers needs is much more extensive
when the customer uses the bank offices as point of interaction, mainly because
personal communications are more easily facilitated in that specific channel.
The production of services and products are being conducted in specific product units,
i.e. SEB Invest, SEB Trygg Liv. When introducing a new product, this can be done
based on two different approaches. Firstly, the bank creates a new product and then tries
to sell it by using a push strategy. Secondly, customers reveal their preferences and
wants in regards to a new product solution and then the bank creates the product after a
dialogue with the customer. This are two different approaches that are used in SEB, but
the company is striving towards the second alternative, producing a product that they
know customers wants and needs.
According to the respondent, SEB can take use of the information received from the
customer and transfer it throughout the channel, but also between different channels.
The information received in the distribution channels can be monetary transaction,
loans, retirement plans, life insurance, and more specifically, what different products
and services the customer is interested of. However, there have been and still are a
resistance to some extent within the company to work in this new manner based on a
customer-centric approach. The information received from the customer is mainly used
to refine product offering and offer the customer the right product, at the right time,
using the right channel.
Customer analysis is conducted in SEB on a central level by a market analysis
department. On a local level a bank counselor executes this at the bank offices. The
customer analysis process used by SEB is based on information. This information can
be old one received through a interaction channel and thereafter stored in a database or
new one transferred at the same time as the analysis takes place. Thereafter a
customization can start aiming after this special customers needs and wants. Finally,
some activity is planned and executed towards this special customer or customer
segment. In all steps some response or feedback will be looped back. Database
marketing is a frequently used activity in this field
In terms of interaction, the bank wants to create different channels for interaction that
will appeal all customers. The bank interacts via the following channels; personal
meetings at the bank office, phone calls, Direct mail, tele-banks (call centers), e-mail,
fax, Internet, WAP, and ATM's. Not everyone wants to use the Internet as their channel
for interaction and therefore there must be a vide array of different customer contact
points between the company and the customer. Furthermore, the respondent states that
using bank offices is the most expensive channel, followed by telephone and the
Internet, which is the cheapest. Therefore, the customer who wants to use a specific
channel must accept the cost of using it. Based on this, the bank tries to guide each
customer into the most appropriate channel for both parties so this creates a win-win
situation for the involved parties.
5.4.3 CRM´s Affect on the Organizational Structure in SEB
There has been no change of SEB organizational structure regarding division of labor,
departmentalization, and distribution of power etc, due to the use of CRM, so in that
sense has CRM not affected SEB organizational structure. CRM has had a minor impact
- 54 -
on the information and decision process regarding planning and control, budgeting and
performance measuring when analysis generated from stored customer data are included
as an foundation in the decision making process. The respondent states that despite this
advancement the organization lacks capacity and to some extent ability to view the
operations with a customer focus.
The reward system has been affected by CRM since relationships with customers are
valued higher and the actual sales figures has decreased in impact when setting the
criteria's for salary, bonuses and other form of compensations. When measuring the
relationship, activities like the number of customer contacts, visit, and activities etc, are
used. Up till today promotion have been based upon other criteria's but there are signs
that customer focus or the ability to enhance relationship activities will maybe in the
future have an impact on the selection of candidates in a promotion process.
As most banks SEB has laid off a large amount of their personnel during the nineties, at
the same time as they have recruited new employees with new skills into all business
areas. The main criterion when selecting a new employee is competence, i.e. his or her
ability to deliver results in the daily work. Customer focus are stressed in the way that a
SEB employee must like to meet and work with people of different kinds
To some extent has CRM affected the relationship between organisational units
regarding their interdependency, diversity and the degree of uncertainty. Very
simplified the bank consists of two parts: production units and the retail bank. The
production units are by nature very eager to sell their products to so many customers as
possible. The retail bank acts as an emissary for the customer aiming to fulfil their needs
and wants towards the rest of the organisation.
To some functions has SEB recruited specialist with the right background to handle
CRM technology. Most of the training has been conducted at the bank offices and the
areas that have been focused on are to make the personnel more customer-focused by
creating an ambition to raise the level of satisfaction in each customer contact. The term
CRM is not widely used within SEB instead customer focus, customer satisfaction,
customer retention and customer loyalty is commonly used terms. The company has a
decentralized management style that enables employees to act and to take responsibility
in their daily work. This management style favors empowerment but however there are
also some guidelines on how to act and some decisions are centralized to higher levels.
As a step toward implementing a customer focus SEB has set up a market advisory
board consisting of representatives from business areas, divisions, and product units.
This board is aiming to create a consensus view on the customer base and is trying to
match the SEB product offering towards the different customer segments needs and
wants.
The roles in the marketing organization are as follows. The central market function
coordinates the marketing process in the company. The head of this function is the sales
& marketing director and the organizational seat for this position and function is in the
staff organization. Central market in cooperation with analysis identifies the right
customer and business opportunities for SEB. Thereafter central market is tailoring the
right offer towards the customer. The presentation of the offer towards the customer is
also made by the central market function. The retail bank manages the customer
interaction in one or several channels.
- 55 -
5.5 FöreningsSparbanken AB
FöreningsSparbanken traces its origin back to the savings bank movement and the
cooperative bank movement. During the years has the savings banks and cooperative
banks merged into larger banks. FöreningsSparbanken is the result of the merger
between Föreningsbanken and Sparbanken Sverige in 1997. (FöreningsSparbanken,
2001) FöreningsSparbanken's business mission is:
"To be the clear choice among banking alternatives for private, individuals, companies,
the agricultural sector, municipalities, country councils and organizations by offering a
range of customized, easy-to-use financial services." (FöreningsSparbanken, 2001,
p.16)
The vision for FöreningsSparbanken is:
"To create the bank of opportunities" (FöreningsSparbanken, 2001, p.16)
In Sweden, FöreningsSparbanken has 4.1 million private customers and 231 000
business customers and the total assets in the bank is 833 billion SEK. To meet their
needs, the Banks has during the last years developed modern system components,
electronic channels and data warehouse to enable new services and an increasing
dialogue with the customers whether how they chooses to use the bank. Furthermore,
the company states that each business unit shall focus on creating increased value for
their customers in the relationship. FöreningsSparbanken organization has four business
units: retail business area, business areas, alliances business area and support function.
This is further demonstrated in their organizational chart. (FöreningsSparbanken, 2001)
See figure 5.5.
Figure 5.5 Organizational Chart of FöreningsSparbanken
Source: FöreningsSparbanken, p.16
Local banks
Board of Directors
Retail Business
Area
President
Internal Audit
Human resource and skills development
Group Development
Information and Investor Relations
Marketing Communication
Executive Secretary
Operational Risks
IT/CIO
Credit/CCO
Accounting, Business controlling,
Treasury, Financial Risks/CFO
Business
Areas
Support
functions
Alliances
Business Area
Telephone
Swedbank Markets
E-business
Payments
Lending
Savings
Aktia Sparbank
Hansabank
FIH
Jointly owned banks
Independent banks
Other
IT
Support
Internet
- 56 -
5.5.1 The Objectives with CRM in FöreningsSparbanken
According to the respondent, the objective with CRM is to find the right customer and
provide the right offers for each customer. Furthermore, to use the right channel to
provide the right offers as well as providing it on the right time is also essential
objectives for CRM within FöreningsSparbanken. The reason for this is that the
company is moving from being very product oriented and is now viewing the situation
from the customer's eyes. The focus within FöreningsSparbanken is to create long-term
profitability and finding out what products the customer want, not what products the
company wants to sell.
There are different objectives with CRM within FöreningsSparbanken. The major
objectives are to increase customer satisfaction rates due to that customers will find that
the offer is more in line with their specific needs and to build personal relationships
with the customer, which will provide feed back to company. Moreover, the company
can by using CRM decrease general sales and marketing administrative costs due to that
the company has a good knowledge about its target segment customers. Therefore,
according to the respondent, the company is using its resources better when no effort is
a waste of money or time. Other major objectives with CRM are to identify those
customer values that are pertinent to a particular segment and determine if delivery of
those values will affect the company positively.
The respondent also states that the objectives with CRM is to communicate and deliver
the appropriate values to each customer in ways the customer wants to receive the
information. Moreover, a major objective is to use existing relationships with their
customers in order to grow revenue since it is the company's belief that it is easier to
sell to a satisfied existing customer than a new one.
Other objectives with CRM in FöreningsSparbanken is to increase sales revenues,
which will result from spending more time with customers and this is a results from
spending less time collecting information about the customer. Moreover, by using
CRM, the company can know more about their customer, which will lead to an increase
in margins. Furthermore, FöreningsSparbanken has some minor objectives with CRM.
These are to increase win rates, since the company withdraws from unlikely or bad
deals earlier in the sales process. By using mass customization, the company can reach
economies of scale, but CRM is also used in FöreningsSparbanken to a minor extent to
measure results and provide return on investment. To assure customer loyalty by
providing after-sale service/support is not an objective with CRM for
FöreningsSparbanken. Moreover, the respondent state that FöreningsSparbanken can
use the integrated service to create a high level of service to the customers and that this
is measured to be of medium importance. Also, introducing consistent and replicable
processes to create security for the customer, since they are being treated and handled in
the same professional way, despite where they interact with FöreningsSparbanken.
FöreningsSparbanken does not identify any other objectives with CRM. The company
has above stated several different objectives with CRM. These are exhibited on the
following page in table 5.5
- 57 -
Table 5.5 Objectives with CRM in FöreningsSparbanken
Objectives None Minor Medium Major
Decrease general sales and marketing administrative
costs

Measuring results and proving return on investments 
Communicating and delivering the appropriate values to
each customer in ways the customer wants to receive the
information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will affect in
a positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Improve customer satisfaction 
Identifying those customer values that are pertinent to a
particular segment.

Understanding the relative importance of customer
values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
5.5.2 The CRM Process in FöreningsSparbanken
According to the respondent, FöreningsSparbanken has been a transactional oriented
company throughout its existence. The company's view on customers has begun to
switch from a transactional oriented focus towards a relationship oriented one. The
reason for this according to the respondent is that FöreningsSparbanken mainly due to
business reasons, to receive and create long-term profitability. A reason why the
transaction-oriented approach has been dominant is that the company's business units
have had a very strong influence and have implemented a very transactional-based
view. According to the respondent, the company is today still more transactional
oriented then relationship oriented.
In terms of the custodian of the customer base, the most important activities in
FöreningsSparbanken are the link between the local branch office employees and their
customers. To ensure a unified view, management of the local activities towards the
customers is controlled and monitored from a central position as well. According to the
respondent, the customer at FöreningsSparbanken is an active part in the sales process,
since their preferences, wants and needs are revealed at that particular moment. Due to
the fact that different business areas have had and still have a strong position in the
company, their own objectives have influenced the marketing function.
FöreningsSparbanken is today undergoing a transition towards retail banking, a new
business concept within the financial industry. Now the bank offices serve as retailer for
the different products that the business areas produce. A customer can interact with
FöreningsSparbanken through several channels such as; personal meetings at the bank
office, phone calls, Direct mail, tele-banks (call centers), e-mail, fax, Internet, WAP,
- 58 -
and ATM's. In terms of the information received from each customer,
FöreningsSparbanken documents the information in the specific channel. For example, a
person interacting with the bank through the use of the Internet will therefore be
registered in that channel. However, there is no channel integration when no distribution
of information occurs between the different channels that the customer can use.
Furthermore, the company today has trouble to get information from the customer
unless that specific individual actually gives information.
According to the respondent, the customer analysis process in FöreningsSparbanken is
structured in the following way: pre-analysis, market planning, create new information.
The first step, pre-analysis is the process of analyzing customer specification and
investment strategies. The analysis is done through a process of customer identification.
Secondly, market planning, where the process aims among other things to define
specific customer offers, and distribution channels. Finally, create new information,
which means to capture and analyze data from the customer dialogue that the company
has received from the interaction channels. This is a continuing learning process
focusing on learning more about each individual customer. The market planning in
FöreningsSparbanken is aiming to support the ongoing work with creating relationships
between the company and their customers. On a local level, the company uses
automated solutions to assist the customer interactions.
The planning of the customer interaction is planned on a central level of the company
and there they try to coordinate initiatives from different business areas. These
initiatives or activities can either be aiming for a specific customer segment or a specific
individual. Almost all activities are planned on a central level but tools for creating local
activities exist.
5.5.3 CRM´s Affect on the Organizational Structure in FöreningsSparbanken
FöreningsSparbanken has today not been affected by CRM in term of organizational
structure. The focus on customer centricity has been present for quite some time but
there is a lack of a comprehensive view of the topic in the company. The transition
towards a retail banking organization where the bank offices acts as retailer for the
production or businesses areas are one way to implement a unified definition of the
customer and how the company should act in regards to individuals. Furthermore,
FöreningsSparbanken cannot say that CRM has affected the information and decision
process from a CRM perspective. The company has not taken CRM into the
organization and followed it to 100 percent. Therefore, the information and decision
process remains affected to a minor extent.
According to FöreningsSparbanken every change in an organization can also mean
alterations in the reward and promotion system. In the case of FöreningsSparbanken, the
company has used an approach similar to the balance scorecard idea. They define this
system as tools for the future, in which the company measures customer satisfaction and
employee satisfaction. However, this way of measuring satisfaction amongst employees
has no strong link to CRM and therefore, the promotion and reward system is according
to the respondent not affected by the introduction of CRM in the organization.
- 59 -
Every organization is according to the respondent focusing on getting the best employee
to the right place. Since FöreningsSparbanken has a customer-focused view on how to
do business, people with those qualities are wanted. However, the specific criteria of
each employee differs a lot due to which customer segment and business area the
employee is intended to work.
In FöreningsSparbanken, CRM has affected the relationship between the production and
business units. According to the respondent, CRM has affected the different
organizational unit and their relationships to a minor extent. However, CRM enables the
company to identify the different point of contacts between organizational units.
Thereby, the company can establish a common agenda and create a unified definition of
a customer and what focus the different activities towards them should have. The
respondent further states that the CRM process is very time consuming when being
introduced and that there is a long stage from idea to introduction and finally
establishment.
FöreningsSparbanken has, according to the respondent, made efforts in computerizing
their operations in order to make the information available for more people within the
organization. A lot of information that previous was filed on paper is now being filed
electronically. The reason for this is to minimize the administration in the company but
also facilitate customer interaction through telephone and the Internet. Furthermore,
FöreningsSparbanken has made other efforts in the process of being more customer-
focused. In regards to employees and recruiting the company has like almost all other
banks been in the process of down sizing the organization. However, according to the
respondent, the company has taken special efforts in focusing on maintaining customer-
focused employees, and of course hiring people with that skill when new recruitments
have been needed.
FöreningsSparbanken has made no organizational changes due to the implementation of
CRM. The company has the same organization before and after CRM was introduced.
The only change in terms of organization is the customer-centric view, which has led to
the establishment of retail banking as a way of conducting business in the company.
Furthermore, since CRM is no established conception within the company, the level of
education in the subject is low. Instead, the company focuses on their own way of being
customer focuses through measuring customer focus and customer satisfaction. The
respondent further state that the level of education in terms of distributing the company
view on customer relationship activities is to low, but refers this issue to a problem on a
local level. According to the respondent, has FöreningsSparbanken during the previous
years, altered their policies towards a more flexible organization that enables the
employee to engage in relationship building activities towards a specific customer. The
tools and the means are available but this has not been fully established within the
organization yet. In regards to how CRM have hade any impact on the roles in the
marketing organization, the respondent states that this is an ongoing process within
FöreningsSparbanken and is therefore hard to specify. The manager in charge of the
retail banking section is today handling the business or marketing processes in the
company. Moreover, the respondent further says that the campaign manager is
responsible for both identification of the right customer, creation of right offer to that
customer and decision on when the offer shall be presented to the customer. The actual
interaction between the customer and the company is being handled on the local bank
office.
- 60 -
6. Analysis
In the previous chapter, the data collected in this research was presented. In this chapter
the data will be analyzed. Firstly, a within case analysis is conducted where the data
from each company is separately compared with the frame of reference to see whether it
fits or not. Secondly, a cross case analysis is provided, where the data collected from the
five cases will be compared with each other. We will also during the analysis process
beginning to explain and discuss possible reasons, patterns and tendencies that are
found in the empirical data. The analysis is presented in a manner that addresses the
three research questions of this study.
6.1 Within Case Analysis of Skanska AB
In this section, a within case analysis of Skanska will be presented. Hence, the data
obtained from the company will be compared with the frame of reference.
6.1.1 The Objectives of CRM in Skanska
The theoretical propositions regarding the first research question, concerning the
objective with CRM covers many different areas. The categorization of these objectives
follows the path of Burnett (2001) that organizes each objective under the three
different areas: cost saving, revenue enhancement and strategic impact. The other
author's presented objectives have in this thesis been classified according to Burnett's
(2001) categorization to see in which of these areas the company focus or addresses the
importance of CRM.
Skanska's main objective with CRM is to create potential for their employees around
the organization with a system that actively support the marketing and sales work. The
respondent stressed that the system is not intended for the executive management level.
This objective is not in accordance with our frame of reference and indicates that
Skanska is a company that view CRM as a marketing tool and not as the business
concept its constitute of.
When viewing the theoretical cost saving objectives and the relative importance in
Skanska, the company states that one major objective with CRM is to decrease general
sales and marketing administrative cost. Medium important costs saving objectives with
CRM is to measuring results and proving return on investment and also assure customer
loyalty based on that the company provides after-sales service/support. The theoretical
cost saving objectives by Newell (2000), communicating and delivering the appropriate
values to each customer in ways the customer want to receive the information was of no
importance as well as Kalakota & Robinson's objective form (1999), to introduce
consistent, replicable processes and procedures. The obtained information from Skanska
is presented in table 6.1 as well as their relative importance.
- 61 -
Table 6.1 Cost Saving Objectives with CRM in Skanska
Cost Saving Objectives None Minor Medium Major
Decrease general sales and marketing administrative
costs

Measuring results and proving return on investments 
Communicating and delivering the appropriate values
to each customer in ways the customer wants to receive
the information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Source: Author's own construction
When analyzing this section of CRM objectives, it becomes clear that Skanska's
objectives are in accordance to the theory with the focus on deceasing general sales and
marketing administrative costs. Furthermore, the other stated objectives is in line with
the proposed theoretical but Skanska does not see two of the presented objectives by
Newell (2000), communicating and deliver the appropriate values and secondly,
Kalakota & Robinson (1999), introducing consistent replicable processes and
procedures. However, in general, Skanska and their objectives are in accordance with
the theories and primarily with lowering marketing costs.
The second classification of objectives with CRM, revenue enhancement i.e. generate
more profit also follows the classification by Burnett (2001). The major revenue
enhancement objective in Skanska is to increase win rates. Since the company and the
market they are present in, constitute primarily of official offers and requests, the level
of received project is essential to the company. Therefore, it does not come as a
complete surprise that Skanska sees this as a major objective. There are three other
objectives with CRM for Skanska that are of little importance and that is to increase
sales revenues, increase margins and determining if delivery of customer values will
affect in a positive manner. Finally, to reach economies of scale through mass
customization and use existing customer relationships to grow revenue are of no
importance to the company. Skanska's objectives that fall under the revenue
enhancement classification are presented in the below-included table 6.2.
Table 6.2 Revenue Enhancement Objectives with CRM in Skanska
Revenue Enhancement Objectives None Minor Medium Major
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will affect
in a positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Source: Author's own construction
All the obtained objectives from Skanska are inline with the theoretical alternatives.
They are of different importance to the company but still they match the selected
variables. Their importance also reflects both Skanska's view on relationships as well as
how the market functions. The objective with increasing win rates seems to be
understandable since the market conditions demand this in order to stay competitive.
What is interesting to see is that two of the objectives proposed in the literature review
- 62 -
and frame of reference is not important to Skanska. Primarily, the objective to use
existing customer relationships to grow revenue and also to reach economies of scale by
mass customization might show a transactional company wanting to be relationship
oriented but is not.
In the final area of objectives, strategic impact according to the classification by Burnett
(2001), is one interesting finding that Skanska has no major strategic objectives with
CRM. However, one medium important objective is to use integrated information for
excellent services. Other objectives such as understanding the relative importance of
customer values to each customer segment and build personal relationships are of little
importance. And, finally, to improve customer satisfaction and identifying those
customer values that are pertinent to a particular segment are of no importance to the
company. To simplify the studying of the strategic impact objectives with CRM for
Skanska, they are as previous objectives, presented in a table, see table 6.3.
Table 6.3 Strategic Impact Objectives with CRM in Skanska
Strategic Impact Objectives None Minor Medium Major
Improve customer satisfaction 
Identifying those customer values that are pertinent to
a particular segment.

Understanding the relative importance of customer
values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
When comparing the data collected with the theory, it becomes clear that all proposed
theoretical objectives are not actual objectives for Skanska. Two of the presented
objectives, improve customer satisfaction and identifying those customer values that are
pertinent to a particular segment was not seen as objectives with CRM for the company.
Regarding advantages of creating customer satisfaction, the company does not see any
strategic advantages of creating this, which Burnett (2001) suggested. This can be due
to that the company present CRM system does not support such an objective and
therefore do not have anything to compare with. Based on this, it also can be assumed
that the company has not perceived any advantages of creating customer satisfaction
activities. However, the respondent sees an advantage of customer satisfaction but today
this is not a focus with their CRM activities. Furthermore, the reason for that the
company sees no goal in identifying the relative importance of customer values to each
customer segment is puzzling. One could ask that since the company has so many
customers, should this not be a reason for engaging in this activity to determine the
relative importance of customer values to each customer segments?
Skanska's objective with CRM is to create potential for their employees around the
organization with a system that actively support the marketing and sales work. The
company states that it is a system for the employees, not the managerial level alone.
When combining the three different areas of objectives, as presented in table 6.4, it may
become clear on what specific objectives the company focuses on.
- 63 -
Table 6.4 Analysis of the Objectives with CRM in Skanska
Cost Saving Objectives None Minor Medium Major
Decrease general sales and marketing
administrative costs

Measuring results and proving return on
investments

Communicating and delivering the appropriate
values to each customer in ways the customer
wants to receive the information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Revenue Enhancement Objectives None Minor Medium Major
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will
affect in a positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow
revenue

Strategic Impact Objectives None Minor Medium Major
Improve customer satisfaction 
Identifying those customer values that are
pertinent to a particular segment.

Understanding the relative importance of customer
values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
Skanska has today only two major objectives with CRM. One is the cost saving
objective by Burnett (2001), to decrease general sales and marketing administrative
cost. Furthermore, their other major intention with CRM, also by Burnett is to increase
win rates, i.e. revenue enhancement. These two objectives are those that dominate
Skanska and their view on CRM. There are three other objectives of medium
importance, measuring results and proving return on investment, assure customer
loyalty by providing after-sale service/support and finally, to use integrated information
for excellent services.
These five objectives could be regarded as the foundation for why Skanska uses CRM.
It can further be noticed that 37.5 percent of the theoretical proposed objectives were
not regarded within the company. So from the three different areas of classifications,
Skanska sees lowering sales and marketing costs and increased win rates as their major
objective. Furthermore, when combining the answer received from Skanska, it become
clear that three of the five important objectives for CRM are located within cost savings
and therefore the reason for why Skanska used this management view may lay within
those answers.
Since CRM is founded from relationship marketing, one can bring the attention to
objectives such as improve customer satisfaction, communicating and the deliver
appropriate values to each customer in way that the customer wants, identifying those
customer values that are pertinent to a particular segment. These objectives should
- 64 -
probably all be ranked higher in a company that is expressing their customer-focused
view. Since relationship marketing is all about fulfilling individual customers needs and
wants, these answers undoubtedly receives attention. Furthermore, objectives such as to
use existing customer relationship to grow revenue is basic marketing philosophy, i.e. it
costs much more to sell to a new customer than an old one. The answers to all those
raised questions are not easy and clear cut. Since the industrial market is often very
transaction oriented, this may also be the case with Skanska and that they may believe
in price and volume instead of relationship variables such as long time-span, mutual
benefits and win-win situations.
6.1.2 The CRM Process in Skanska
Financial custodian of the customer base. Within Skanska the most important activity
in their custodian of the customer base is to identify the conveyed and disclosed needs
of their customers and then with this knowledge try to receive customer satisfaction by
delivering the right value to the customer. As we can see it is Skanska in line with
Peppers & Rogers (1998) when their focus is on identifying the needs of their customers
and then by involving the customer on his own conditions in the value creation process.
Production, Logistics, and Service Delivery. The company appreciate customers that are
active in the selling process when its facilitating Skanska's ability to satisfy their needs.
This is in accordance with Peppers and Rogers (1998) ideas of how to truly deliver
customized product or service. However, it's up to the customer, as Skanska stated, to
choose how active or passive he or she wants to be in selling process. Skanska lacks a
marketing organization and instead the marketing function is incorporated into the
production organization where also the logistic function is incorporated. Important to
note is that the theory by Peppers & Rogers (1998) is talking about functions not
organizational units. So with that in mind we can say that Skanska is working in line
with the theory by Peppers & Rogers (1998) and seems to be customer centric minded.
Market Communication, Customer Service, and Interaction Dialogue. Skanska uses
several tools to start up or continue a dialogue with its customers. The project team
performs the major part of the interaction with the customer. The gathering and storing
of customer information in Skanska seems also to be in line with the theory by Peppers
& Rogers (1998) when the data systems enables Skanska's marketing communication to
pick up the dialogue where it stopped yesterday.
Sales Distribution and Channel Management. Skanska fulfills Peppers & Rogers (1998)
requirements concerning the area of control over its distributions channels. The reason
to this is that Skanska is providing a service or a product that is customized to a high
level and that cannot be transferred or stored in a traditional chain of distribution. This
enables them as Peppers & Rogers (1998) suggest to easily generate information from
the distribution channels. However, how Skanska uses this information is a question that
the respondent would not answer based on the company believe that this should be kept
confidential.
- 65 -
Knowledge discovery. In Skanska most of the knowledge discovery is from the
information received from the customer systematically, this referrers to the registration
of each customer interaction or meeting that occur and that those events are logged in
the data system, expressing what has been said, decided or planned. After this everyone
that needs that information can log on and receive necessary data. As we can see it this
enables the process of customer identification, customer segmentation, and customer
prediction as suggested by Peppers & Rogers (1998). However, how Skanska uses this
information is a question that the respondent would not answer based on the company's
believe that this should be kept confidential. This is also the situation in regards to how
the customer analysis process is structured. The respondent disclosed that the company
uses key figures in terms of loyalty, frequency and volume of purchase etc but would
not go deeper into the subject based on the believe that this is critical information.
Market planning. Skanska's view of marketing planning is in line with Swift (2001)
when the market planning is conducted on each regional market taking local conditions
and customers into consideration. The investment in customer relationships is also in
accordance with the theory. The major reason to this can be that the customers'
demands and involvement in production process is important when the company can
receive information that can be vital for a customization.
Customer interaction. Customers mostly interact with the members of the team that
Skanska has assigned for the project. This interaction can be via letter, e-mail, stationary
and cellular telephones, and fax machines and also by meeting the customer face to
face. The last one is most frequently used and the other ones is mostly a complement.
Skanska also uses direct mail as a direct marketing tool to present news about
themselves their products and services. The use of contact points is in accordance with
the suggested ones by Swift (2001). However, some of the suggested contact points like
agents, retail branches and call-centers and also Skanska does not use ATM's. The
reasons for this can be industry specific when agents and retailers are not used in the
construction business. Call center and also ATM as a contact points seems also to be
ruled out since the complexity in the products or services are difficult to convey via
telephone or wire.
Analysis and refinement. The respondent believed that usage of the received customer
information should stay confidential at Skanska. Therefore he didn't comment on how
their customer analysis process is structured. The respondent disclosed that the company
uses key figures in terms of loyalty, frequency and volume of purchase etc but would
not go deeper into the subject based on the believe that this is critical information for the
company. A further analysis would only lead to a decrease in validity and reliability,
when such attempt would be speculations from our side.
6.1.3 CRM´s Affect on the Organizational Structure in SEB
Structure. Skanska states that CRM has not affected the organizational structure
regarding shape, departmentalization, distribution of power, or division of labor.
Information and decision processes. This area has been affected by CRM when
marketing plans now is more precise than before. This is a result of the more
comprehensive information gained from customer interactions. This has provided a
better base for making the right prioritizations regarding projects and customers.
- 66 -
Reward systems. Skanska states that there had been no changes in the reward system
concerning compensation and promotion due to the implementation. The
interdependency and uncertainty between the organizational units, and the diversity
among them remains the same has before the implementation of CRM.
People. In this area it is mostly recruiting and training that have been affected by CRM
and the company has conducted extensive training and education.
Task. There has been no affect on the relationship between organizational units due to
the implementation of CRM.
What areas that have been altered are presented in table 6.5.
Table 6.5 Organizational Design in Skanska Affected by CRM
Organizational design variables Affected by CRM
Structure No
Information and decision processes Yes
Reward System No
People Yes
Task No
Source: Author's own construction
When analyzing the section regarding organization design variables and comparing the
answers received with the theoretical propositions stated in the frame of reference, it
appears that Skanska agrees with the theory to a minor extent. The five variables
included in the theory are mostly not affected by CRM. The variable, information and
decision processes are according to the company affected since the Skanska now uses a
better foundation for their decisions. The variable, people has also been affected when
training have been conducted as the theoretical proposition suggested. When viewing
table 6.5, the result pretty much speak for it selves since Skanska appears to not identify
the need to make alterations in the other areas. The change in regards to information and
decision processes could imply that the company views CRM as no more than just a
data base system for information handling instead of view upon it as a total management
view that CRM actually constitutes of.
The second area of the analysis regarding how CRM has affected the organization
covers the transformation from transactional to relationship oriented. Since all
marketing basically was transactional, a company aiming to develop a relationship-
oriented perspective must make some sort of change towards that goal. The company
has made some alterations to ease the flow of information between employees and
departments. Previous, the information stayed at the person who received it but the
computerization of information has led to increased availability. Skanska has today not
replaced a lot of employees to enforce a more customer-focused organization. Instead of
attrition, Skanska has conducted training on CRM during the last years for different
categories of employees. Skanska has put more effort into recruiting customer-oriented
employees than before, but still the most important criteria hiring a new employee are
his or her capability to do the work. No activities in the area of reorganization have been
conducted due to CRM. Skanska has also a decentralized management style that enables
each employee to take initiative in his or her work and towards the customers. This is a
prerequisite for success when all-important decisions must be taken close to the
customer by the project team.
- 67 -
Skanska is a company that fulfills the majority of change areas suggested by
McDermott in Peppers & Rogers (1999). In the below included table, the answers from
Skanska concerning this issue is presented, see table 6.6 on the following page.
Table 6.6 Organizational Change in Skanska Affected by CRM
Organizational change variables Affected by CRM
Automation Yes
Attrition No
Reorganization No
Training and Education Yes
Empowerment Yes
Source: Author's own construction
The company has made a transfer towards the paperless office when efforts have been
made to ease the distribution and access of information. Furthermore, the company has
conducted training and education of the employees on all level regarding CRM and uses
a decentralized management style that enables each employee to take initiatives in his or
her customer interactions. Therefore, it can be analyzed that Skanska agrees with the
theory in all areas to a certain extent. The two areas where the company differs are
reorganization and attrition since no reorganization or replacement of the work force has
been made to strengthen the implementation of a relationship-oriented focus.
When comparing Skanska with Swift (2001) ideas on how to structure a market
organization, we can see that up till today CRM has had no impact on the roles in
Skanska's marketing organization. In Skanska it is the chief marketing officer that
coordinates the business process at a central level and by the district managers at a local
level. The district managers also have the responsibility to identify business
opportunities and to keep up with coming construction projects that customer in his area
is planning for. Based on these activities he sets up a team that creates a solution based
on the customers' specifications for the project. The project team then presents this
solution to the customer and will later on handle the interaction, if Skanska is selected
as contractor.
When analyzing this, it becomes clear that Skanska agrees with the theoretical
propositions by Swift (2001) to some extent. The chief marketing officer or the district
managers act as two different role figures in the marketing organization. Primarily, this
individual is referred to as the CRM Marketing VP since he or she is responsible for the
management of the marketing activities. In the case of Skanska, this person can also be
considered to be equivalent to the marketing analyst since they identify business
opportunities and find customers.
Moreover, the same person handles the tasks presented in the theory by Swift (2001) as
connected to the segment manager, since that person owns the business opportunities or
the business problems such as customer retention, customer acquisition, and customer
profitability. The project team constructed in Skanska may be referred to as the
campaign managers since this group designs the offer, timing etc towards the customers.
Nevertheless, the district manager or chief marketing officer depending on if the
customer is on a local or central level seems to handle the majority of the functions in
the marketing organization.
- 68 -
6.2 Within Case Analysis of Svenska Kullager Fabriken AB
The second company investigated was SKF and here the within case analysis of the
company follows and the data obtained from the company will be compared with the
frame of reference of the thesis.
6.2.1 The Objectives of CRM in SKF
The main objective for SKF in their work with CRM is to create and store customer
information at one central spotting. This information is the foundation for their base of
customer knowledge, generated in different channels developed for customer
interaction. The gained customer knowledge is a vital tool for various individual SKF
employees to increase the efficiency when meeting one of SKF's customers. This
objective is not in line with our frame of reference and indicates that SKF may view
CRM as a just a tool for marketing and sales and not as the business concept its actually
constitute of.
When following the same categorization as Burnett (2001) one can see that in the first
segment, cost saving, SKF has identified two major objectives with CRM. These are to
communicate and deliver the appropriate values to each customer in ways the customer
wants to receive the information. Moreover, assure customer loyalty by providing after-
sale service/support. The objectives of medium importance are to measure results and to
view whether the investment was positive in terms of return. Two other objectives of
minor importance are located in the cost saving area and that is to decrease general sales
and marketing administrative costs and introducing consistent replicable processes and
procedures. The cost saving objectives with CRM in SKF is described in table 6.7
Table 6.7 Cost Saving Objectives with CRM in SKF
Cost Saving Objectives None Minor Medium Major
Decrease general sales and marketing administrative
costs

Measuring results and proving return on investments 
Communicating and delivering the appropriate values to
each customer in ways the customer wants to receive the
information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Source: Author's own construction
It becomes clear the all the objectives in this area are in line with the proposed
theoretical ones. None of the goals was regarded as objectives of no importance.
Moreover, no other goals in the cost saving classification were presented by SKF. The
objective created by Newell (2000) to communicate and deliver the appropriate values
to customer in ways the want to receive it may imply that SKF focuses on doing ways in
accordance to customer preferences. The customer loyalty goal by Galbreath & Rogers
(1999) and the high rank it received might come as a logical result from SKF's ambition
to please their customers.
- 69 -
Pure coincidence or intended, one can see that Burnett (2001) and his proposed
objectives with CRM dominate the revenue enhancement objectives in SKF. Newell's
(2000) selected variable, to determine if delivery of customer values will affect in a
positive manner, was not considered as a objective with CRM in SKF and to reach
economies of scale through mass customization by Galbreath & Rogers (1999) only
received the value of minor importance by the company. The received data from SKF in
terms of revenue enhancement objectives is presented in table 6.8.
Table 6.8 Revenue Enhancement Objectives with CRM in SKF
Revenue Enhancement Objectives None Minor Medium Major
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will affect in
a positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Source: Author's own construction
SKF appears when analyzing this section to be a highly transactional company with
some relationship-oriented features. The last one is shown by their high rank of
Kalakota & Robinson's suggested goal from (1999), which is to use existing customers
to grow revenue. However, SKF focuses their energy on increasing sales, increasing
win rates and increasing margins. This can be hard to do without getting into a
transactional-based orientation. Once again, as mentioned in the analysis of Skanska,
the industrial companies are known to be very transactional-focused and might place
more confidence in the product than in relationships.
The last classification by Burnett (2001) implies objectives with CRM that can create
competitive advantages for the companies through the strategic impact they will have.
SKF values the theoretical objectives of CRM in terms of strategic impact as described
in table 6.9
Table 6.9 Strategic Impact Objectives with CRM in SKF
Strategic Impact Objectives None Minor Medium Major
Improve customer satisfaction 
Identifying those customer values that are pertinent to a
particular segment.

Understanding the relative importance of customer
values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
SKF sees two major objectives with CRM when referring to strategic impact, firstly to
improve customer satisfaction but also to build personal relationships. The other
presented objectives all receive a medium importance rank by the company. SKF views
both the identification and understanding of customer values pertinent to a specific
customer segment as major important but also to use integrated information for
excellent services.
- 70 -
When viewing table 6.9, it becomes clear that strategic impact is an area that SKF
focuses on since all five different objectives are given at least medium importance.
From a relationship perspective all goals are a result of a relationship-oriented firm in
regards to strategic impact. Improve customer satisfaction is something that only can be
done through the knowledge about customers wants and needs. Therefore, under this
classification, SKF seems to be a company accommodating the basics of relationship
marketing.
When analyzing the original table containing all different goals with CRM, analysis can
be made regarding in what areas SKF's goals agrees with the theoretical ones. The
objectives are demonstrated in table 6.10.
Table 6.10 Analysis of the Objectives with CRM in SKF
Cost Saving Objectives None Minor Medium Major
Decrease general sales and marketing administrative
costs

Measuring results and proving return on investments 
Communicating and delivering the appropriate values to
each customer in ways the customer wants to receive the
information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Revenue Enhancement Objectives None Minor Medium Major
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will affect in
a positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Strategic Impact Objectives None Minor Medium Major
Improve customer satisfaction 
Identifying those customer values that are pertinent to a
particular segment.

Understanding the relative importance of customer
values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
SKF is a company that has at least one major objectives with CRM in all the three
different areas. They all are in accordance with theory and therefore, SKF can most
likely be classified as a company working under the assumptions and ideas that the
theoretical framework supports. Furthermore, it can be stated that primarily, SKF
focuses on two areas, in which they want to receive benefits from their CRM activities.
Firstly, cost saving since the company believes that through CRM one can lower overall
costs and thereby creating competitive advantage. The second area is strategic impact,
which in total dominates the company's goals with CRM. All different proposed goals
are given very high remarks and therefore it can be argued that CRM is for SKF a
matter of strategic issues primarily and revenue enhancement as well as cost saving
secondly.
- 71 -
It is interesting to see that a company like SKF, involved in an industrial market is both
interested in building personal relationships with their customers and to improve
customer satisfaction that one can say constitutes that basis of CRM and relationship
marketing. At the same time, the company focuses on revenue enhancement through
increased sales; higher margins and improvement in win rates. Without jumping to
conclusions, it seems like SKF and that their CRM activities primarily focus on strategic
issues and hope thereby to gain benefits from the two other classifications of objectives.
6.2.2 The CRM Process in SKF
Financial custodian of the customer base. SKF tends to be a company that focuses on
the customer and his needs. The organization around customers and not products is the
most important activity in the custodian of the customer base. In doing so SKF is more
able to take advantage of the identified differences between individual customers. All
this is in accordance with Peppers & Rogers (1998) suggestions.
Production, Logistics, and Service Delivery. SKF differs from the theory by Peppers &
Rogers (1998) in the area of how the customer is involved in the sales process, when he
is passive in a straight re-buy situation and active when buying new products. The
reason to this can probably be found in the value that each purchase brings the
customer. In the area of integrating logistics and production functions in the marketing
process is SKF partly in line with the theory when these functions are indirectly
involved in the marketing process and have a great impact when product quality and
delivery is important factors influencing customer satisfaction.
Market Communication, Customer Service, and Interaction Dialogue. SKF is working
in line with the theory by Peppers & Rogers (1998) when they have created a systematic
approach to collect and save important customer information. However, it is interesting
to find that they do not put so much effort into receiving first hand information about
each single customer that uses a distribution channel that SKF doesn't control.
Sales Distribution and Channel Management. The lack of customer information from
the distribution channels mentioned above has lead to that SKF has to rely on second
hand sources from the distributor and on customer surveys. This tactic also brings the
disadvantage that customers are seen as a segment, not as an individual customer. SKF
inability to transfer information across national borders is also an obstacle when
customer has operations in several countries. As we can see it SKF has some obstacles
that can obstruct or complicate their ability to receive feedback, continue a dialogue
from the spot it ended earlier and to customize offers. SKF hasn't applied to the ideas of
Peppers and Rogers (1998) on how to gain customer information from the distribution
chain. This indicates that SKF can receive false or fragmented customer information.
Knowledge discovery. The company has a systematical gathering and storing of
customer data that are in line with Swift (2001). However the fact that SKF has today
no access to customer information from distribution channel as well from foreign SKF
subsidiaries when the information not could be conveyed through national borders is a
weak spot in their knowledge discovery process. This implies that SKF has difficulties
to act in spirit of Swift (2001) when they don't have a full picture of the customer and
his needs and wants or actual size as customer. All this is a consequence of that they
only has a fragmented view of their customers.
- 72 -
Market planning. The company's main focus in marketing planning seems transaction
oriented. However, the way the company act to fulfill their main focus is relationship
oriented when using existing customer knowledge to increase their performance. As
already mentioned above the customer data have shortcomings, but we can however see
the direction towards a customization that SKF is striving for. How SKF is handling this
activity is as we see it in accordance with Swift (2001)
Customer Interaction. The use of contact points is in accordance with the suggested
ones by Swift (2001). However, it seems like the use of ATM as a contact points is
branch specific and is not used by SKF. The company has also different approaches
when handling large and smaller customers. As we can see it is possible for the special
sales team handling large accounts to customize offers and information. However, SKF
is in a situation already discussed, where the information is not complete enough to
enable a customization towards minor customer. This is partly in line with Swift (2001)
theory regarding customer interaction.
Analysis and refinement. The way SKF handles this issue is in line with the theory by
Swift (2001) and stressed by the statement "It is the customer's perception of our
performance that determines our success". To live up to this requirements it's
necessary for SKF to focus on the ongoing customer analysis process based on earlier
interactions with the customer. The aim is to meet the customers' expectation better in
the future, by a customization.
6.2.3 CRM´s Affect on the Organizational Structure in SKF
Structure. The implementation of a CRM strategy in SKF has not affected the
organizational structure regarding division of labor, departmentalization, shape, or
distribution of power.
Information and decision processes. The area of information and decision process has
not either been affected by this implementation.
Reward systems. This area are also unaffected by implementation of CRM in SKF.
People. However, SKF have put more effort in recruiting customer-oriented employees
and also training on CRM
Task. Since no organizational change has taken place in SKF the relationship between
organizational units has remained unchanged.
What areas that have been altered are presented in table 6.11.
Table 6.11 Organizational Design in SKF Affected by CRM
Organizational design variables Affected by CRM
Structure No
Information and decision processes No
Reward System No
People Yes
Task No
Source: Author's own construction
- 73 -
When analyzing the data collected from SKF and comparing it with the theoretical
proposed organizational design variables by Galbraith & Kazanjian (1986) it becomes
clear the SKF does not agree with the theoretical arguments in this area, except in the
people variable. The introduction of CRM in the company has not affected the
organizational variables in any why and the suggested areas such as structure,
information and decision processes, reward system and task is not viewed as necessary
areas to adjust when introducing CRM in SKF.
The company change theory by McDermott, presented in Peppers & Rogers (1999)
suggests that automation, attrition, reorganization, training and education and finally
empowerment are areas need to be coped with in order to make the transition from
transactional-oriented to a customer-focused company. The organizational change
variables and how they have been affected by CRM is presented in table 6.12.
Table 6.12 Organizational Change in SKF Affected by CRM
Organizational change variables Affected by CRM
Automation Yes
Attrition No
Reorganization No
Training and Education Yes
Empowerment No
Source: Author's own construction
Like many large company's, SKF has made efforts in easing the transfer of information
by making a large portion of it electronically. But the company has made no changes
among the employees to ease the introduction of CRM, as suggested by McDermott in
Peppers & Rogers (1999). Furthermore, no reorganization has occurred as well as any
struggles to increase the empowerment for employees involved in customer contacts. In
terms of training and education it is mostly the sales personnel that have received this.
SKF is a solid Swedish manufacturing company, established 1907 and this could maybe
be one answer to why the company has not made that many extensive alterations or
changes when introducing CRM. When comparing the empirical data received from the
company with the selected theories in the frame of reference and in this case more
precise the company change by McDermott, in Peppers & Rogers (1999), it appears to
be that SKF agrees with the theory to a minor part. The company states that the area
referred to by McDermott as automation, is something that the company has done since
they have implemented an electronic document system to ease the accessible of
information for the company. This is inline with the suggested theoretical variables as
well as training and education, which is also an area that SKF has put efforts into when
introducing CRM. However, the only people who have received education and training
are sales personnel and other employees may lack the appropriate knowledge regarding
CRM. The other variables, attrition is something that SKF does not agree with theory,
since no changes among employees to retrieve a more customer-focused staff has been
conducted. This could perhaps lie in the foundation of that the company may already
have those types of employees or maybe that the company's ingenuity tradition has
made such alterations difficult to implement. CRM has also not led to any
reorganizations of the company and therefore, this is another area where SKF does not
agree with theory. As McDermott states, when switching the focus from transactional to
customer-focus empowerment make it easier for each individual employee when they
can decide how to maximize the customer interaction.
- 74 -
Swift (2000) has as mentioned in the frame of reference suggested five different
positions or job tasks that need to be covered and handled when working customer
centric. In SKF the channel manager has the responsibility to coordinate the business
process and the interaction with the customer. Key issues here are to identify the right
customer and business opportunity and thereafter to create the right offer and to decide
when the offer shall be presented for the customer. Since one person is according to
SKF responsible for the whole business process and the interaction with the customer,
this makes the analysis easy for us to conduct. The company supports the theoretical
proposed and suggested work tasks that must be conducted, but not the way they should
be executed. This is due to that SKF has only one person involved and responsible for
the whole process and therefore this is not in accordance with the theory by Swift
(2001). It is important to notice that the company has identified the essential tasks but
the placement of the total workload may indicate that a task suggested by theory to be
handled by five positions, is in SKF solved by one, maybe is based on that these
activities are not viewed as important in the company.
6.3 Within Case Analysis of Scania AB
The third case study object, Scania will in this section be analyzed when the empirical
data and frame of reference will be compared in order to discover similarities and
differences.
6.3.1 The Objectives of CRM in Scania
The company's main objective of CRM is to strengthen the relationships with their
existing customer and more accurate, the profitable customers and by doing this the
company will reach long-term profitability. This objective is not totally in accordance
with our frame of reference but it conveys that Scania's main objective is in the area of
strategic impact and that indicates that Scania is a company viewing CRM as more then
a just a marketing tool.
When addressing Burnett's classification from (2001), cost saving, revenue
enhancement and strategic impact, it becomes clear that overall many theoretical
proposed goals are themselves important goals for Scania. In terms of the first area, cost
saving, the company has the following objectives, described in table 6.13
Table 6.13 Cost Saving Objectives with CRM in Scania
Cost Saving Objectives None Minor Medium Major
Decrease general sales and marketing administrative
costs

Measuring results and proving return on investments 
Communicating and delivering the appropriate values
to each customer in ways the customer wants to receive
the information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Source: Author's own construction
- 75 -
In regards to cost saving, Newell's objective (2000) to communicate and deliver the
appropriate values to each customer in ways they want to receive the information is
ranked as a major objective as well as Galbreath & Rogers goal from (1999) to assure
customer loyalty through after-sale service/support. Furthermore, the respondent states
that decreasing general sales and marketing administrative cost, a goal stated by Burnett
(2001) is a goal of medium importance. Another theoretical presented objective by
Newell (2000), to measure result and prove return on investment has also been ranked
as medium importance, as well as the final objective by Kalakota & Robinson (1999), to
introduce replicable and consistent channel processes and procedures. Analyzing this
part of the objectives or goals with CRM in Scania, the entire stated objective by the
company agrees with the theoretical proposed and the company has not stated any
additional ones. Therefore, one can argue that Scania follows the guidelines of previous
research and ranks those objectives that researchers have presented as both important
and relevant. Scania believes that through CRM the company can lower its costs or have
at least identified the possibility to do so.
Next of Burnett (2001) classifications, revenue enhancement reveals interesting
findings. Scania states that out of the six possible goals, three are ranked as major
objectives with CRM. Burnett (2001) has presented three objectives with CRM and two
of those, increase win rates and increase margins are all marked as major. The third
proposed objective, to increase sales revenue, is of no important for Scania in the sort
run since they are aiming to satisfy the customer. The third major objective is according
to Scania to use existing customer relationships to grow revenue, a goal originated by
Kalakota & Robinson (1999). The second medium reason for CRM in Scania is to
determine if delivery of customer values will affect in a positive manner. One objective
by Galbreath & Rogers (1999) is not viewed, as a objective for Scania and that is to
reach economies of scale through mass customization. All answers are displayed in
table 6.14.
Table 6.14 Revenue Enhancement Objectives with CRM in Scania
Revenue Enhancement Objectives None Minor Medium Major
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will affect
in a positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Source: Author's own construction
Scania shows signs that they have placed a lot of attention to CRM. The company has
noticed that through CRM, they can increase revenues and profits, by selling to existing
customers and therefore avoids the high costs of selling to new customers as well as by
knowing more about their customers they can increase both sales volumes, win rates
and margins. All their objectives in terms of revenue enhancement are in line with the
theories. One objective, to reach economies of scale by mass customization is not
viewed as a objective and this could maybe imply that Scania is not interested in
creating customer segments, to ease the handling of the customers. It might be the case
that Scania is more interested in meeting individual customers wants and needs by
really identifying their specific criteria, preferences, wants and needs.
- 76 -
CRM is as the name reveals a management perspective and therefore, some strategic
impact must come out of such a structure and strategy. Scania once again views this part
of objectives, strategic impact as highly important. The theories present five different
objectives and all of them are rank at least as medium importance to the company. They
are all presented in the below-included table 6.15.
Table 6.15 Strategic Impact Objectives with CRM in Scania
Strategic Impact Objectives None Minor Medium Major
Improve customer satisfaction 
Identifying those customer values that are pertinent to
a particular segment.

Understanding the relative importance of customer
values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
Scania addresses two major strategic impact objectives with CRM and that is to
improve customer satisfaction rates, by Burnett (2001), due to the fact that the customer
will find that the offers is more in line with their specific needs. Furthermore, the
company can also use integrated information for excellent service, a objective created
by Kalakota & Robinson (1999).
This information can be used to excel the service or support functions, which can lead to
improved customer satisfaction. Scania has ranked these two objectives as major with
CRM. All these objectives are in line with the theories. To identify and understand the
importance of customer values to a specific segment by Newell (2000) are two
objectives that are been viewed as medium important.
Finally, Galbreath & Rogers theoretical suggestion from (1999) to build personal
relationships was also ranked high by Scania. Strategic impact issues have been a focus
for Scania. All the stated objectives with CRM in that area are in line with the
theoretical stated ones and all are ranked high.
When combining the three different areas of theoretical objectives with CRM, cost
saving, revenue enhancement and strategic impact a certain pattern may evolve that are
interesting to view and reflect over. These three classifications are brought together in
table 6.16.
- 77 -
Table 6.16 Analysis of the Objectives with CRM in Scania
Cost Saving Objectives None Minor Medium Major
Decrease general sales and marketing administrative costs 
Measuring results and proving return on investments 
Communicating and delivering the appropriate values to
each customer in ways the customer wants to receive the
information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Revenue enhancement Objectives None Minor Medium Major
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will affect in a
positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Strategic Impact Objectives None Minor Medium Major
Improve customer satisfaction 
Identifying those customer values that are pertinent to a
particular segment.

Understanding the relative importance of customer values
to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
To analyze the company's objectives with CRM is very easy in some ways and more
difficult in other. When viewing table 6.16, one can summarize Scania as company that
has goals with CRM that correlates very accurately to the stated theoretical
propositions. Furthermore, the company may be viewed as very relationship-oriented
and their refusal to the objective of reaching economies of scale by mass customization
reveals most likely that the company is very customer individual focused and that they
really are aiming to fulfilling the wants and needs of each customer. But without
jumping the story ahead, the analysis also reveals that the company ranks almost all
objectives high and a question may be raised if it is possible to have so many objectives
with CRM in one company. Scania states that and therefore, the analysis further reveals
that Scania most likely has identified that benefits of CRM can be held in both cost
saving, increasing revenue and strategic impact issues. One may argue that Scania uses
CRM as the actual concept was intended. A complete strategic tool to create
competitive advantage through focusing on managing the relationship a company has
with its customers. Finally, to sum up the analysis, Scania is a company that follows the
theoretical path created by several authors and their goals agrees with the company.
6.3.2 The CRM Process in Scania
Financial custodian of the customer base. Scania is putting a lot of effort in being a
relationship-oriented company and is well in line with Peppers & Rogers (1998) since
the dealerships and distributors manage the custodian of the customer base locally.
Those are working customer centric at the level closets to the customer and in a
- 78 -
customized manner. This is also supported by the fact that Scania concentrates on
coordinate the customer activities taking place.
Production, Logistics, and Service Delivery. Scania has two different types of customer:
few-vehicle customers and fleet customers. They can be described as mostly active and
Scania's salespeople are also trying to turn the passive customers into active ones. This
gives Scania good opportunities to customize it products and services, when they
receive quality customer information. It is also interesting to note that Scania has
combine the knowledge from production and logistics into the marketing process in
order to meet the customers demands as suggested by Peppers & Rogers (1998).
Market Communication, Customer Service, and Interaction Dialogue. Scania is working
well in line with the theoretical proposition by Peppers & Rogers (1998), and seems to
have an ambition to go even further when stressing the importance of increasing the
amount of customer information and also by making this information more available.
Sales Distribution and Channel Management. Scania has integrated forward in their
chain of distribution to gain control over the daily operation and to obtain customer
information. This strategy was not suggested by Peppers & Rogers (1998) but seems
reasonable in this line of industry. However, a forward integration might have a
negative impact on the entrepreneurial spirit. Scania also raised question of that cultural
issues, and legal issues can act as a hindrance when transferring customer information
across borders.
Knowledge discovery. Scania acts in accordance with Swift (2001) regarding knowledge
discovery. Their CRM data system enables them to gather and store customer
information received from distributors and dealerships. Most of this information is used
at the local level where the customer interaction takes place. The customer information
is enabling a focus on the single customers needs and wants as proposed by the theory.
Market planning. Scania's view of marketing planning is in line with Swift (2001) when
the market planning is conducted on each regional market taking local conditions and
customers in to consideration. Scania's marketing plan is also affected on how Scania's
organization is structured on a specific market as well. This is not in line with Swift
(2001) but seems very reasonable in a short-term perspective when the organization is
regarded as a fix factor. The investment in customer relationships is also in accordance
with the theory by Swift (2001). The major reason to this can be that the customers'
involvement in selling process is important in order to reach customer satisfaction.
Customer Interaction. The use of contact points is in accordance with the suggested
ones by Swift (2001). However, it seems like the use of ATM as a contact points is
branch-specific and is not either used by Scania. The company has also different
approaches when handling large and smaller customers. As we can see it is possible for
both the key account team handling fleet customers and a dealership salesmen handling
few vehicles customers to customize offers and information. Scania is in a situation
where the customer information received earlier can work as a foundation for
customization. This is in line with Swift (2001) theory regarding customer interaction.
Analysis and refinement. Scania's analysis and refinement process is in accordance with
the theoretical suggestions by Swift (2001). The sales people at the dealership are
- 79 -
conducting the process automatically. This implies that Scania has a well-structured
approach close to the customer that in the end shall provide the customer the expected
value end thereby a satisfaction.
6.3.3 CRM´s Affect on the Organizational Structure in Scania
Structure. CRM has affected Scania's organizational structure in several ways. The
product development is now being conducted in a closer cooperation with the marketing
function. In the product development clinics are several of Scania's core competences
working together to develop new products in cooperation with customers. However, the
impact from CRM on production units has been relative small.
Information and decision processes. The ambition to become more customer focused
has lead to customer cogitation in the information and decisions processes regarding
planning and control, budgeting and performance measuring. Customer satisfaction has
become one of the most widely used criteria on how to measure Scania's performance.
Reward systems. The reward system in Scania has been altered so that bonuses are
received when products are being delivered on time and the people variable has also
been altered so that both recruitment and leadership style is influenced by the customer-
centric approach.
People. Scania has conducted extensive training and education in this area that have
been affected by implementation of CRM.
Task. There has been no affect on the relationship between organizational units due to
the implementation of CRM in Scania.
What have been altered in Scania is presented in table 6.17.
Table 6.17 Organizational Design in Scania Affected by CRM
Organizational design variables Affected by CRM
Structure Yes
Information and decision processes Yes
Reward System Yes
People Yes
Task No
Source: Author's own construction
Scania stresses in its business mission that the company should supply its customers
with vehicles and services related to the transport of goods and passengers by road and
focus on customer needs. This is also in line with the findings from the analysis of this
first section of research question three. The company shows to be agreeing with the
theoretical proposition of Galbraith & Kazanjian (1986) since they perceive four out of
five design variables to have been affected by the introduction of CRM. The only area
that the company believes has not been affected is task, which relates to uncertainty,
diversity and interdependence. Therefore, one might find it interesting that task has not
been affected since the all other areas have been affected.
- 80 -
When comparing the empirical data received from Scania with the theory selected,
Scania appears to follow the guidelines stated by McDermott' theory presented in
Peppers & Rogers (1999). Scania's answers are displayed in table 6.18.
Table 6.18 Organizational Change in Scania Affected by CRM
Organizational change variables Affected by CRM
Automation Yes
Attrition Yes
Reorganization Yes
Training and Education Yes
Empowerment Yes
Source: Author's own construction
The company states that they have made customer information more accessible to
employees and does therefore agree with McDermott since they have made alterations
in this area. Another part that Scania is inline with the theory in regards to attrition,
since the company uses customer focused variables when hiring a new employee and
handling other HRM functions.
The third suggested area by McDermott in Peppers & Rogers (1999) is in terms of
reorganization. The respondent stated that Scania now has a closer cooperation with
both marketing department and customers in the product development. This is to some
extent inline with theory but McDermott takes it much further and suggest that the
whole company should be reorganized.
The training and education of staff as suggested by the theory is Scania aware of. Their
marketing academy focusing on the distributors is most certainly inline with the
theoretical proposition. However, the company does not agree with theory since they do
not perceive the need to train all employees in customer relationship thinking as large
and necessary and focuses mostly on sales personnel.
The leadership alteration to create empowerment among employees is something that
the respondent states have been made. Therefore, it can be stated that Scania and the
theory is in line. It is however, hard to make any extensive analysis regarding the
leadership alterations in the company, when it is hard to measure in terms of impact on
the distributors and dealerships.
In the area of Swift (2001) theory on how companies can structure their CRM marketing
organization has Scania stated that three different actors can be identified as the person
in charge of coordinating marketing activities, namely the identification of right
customer, creation of the right offer and deciding the right time to present the offer.
These can be either, distributor, retailer or in the case of large international customers,
the head quarters of Scania. It is however interesting when analyzing that it is the
distributor or retailer that are responsible and therefore it can be stated that Scania
agrees with the theory except that one person is responsible for all marketing activities.
- 81 -
6.4 Within Case Analysis of Skandinaviska Enskilda Banken AB
In this section, a within case analysis of SEB will be presented. Here, the data obtained
from the company will be compared with the frame of reference.
6.4.1 The Objectives of CRM in SEB
SEB main objectives are to improve the process to communicate with the right customer
and to provide each customer the offers through the right channel at the right time. By
doing this, SEB can create customer satisfaction. This objective is in line with the
theoretical proposition in our frame of reference since Swift (2001) theory is
incorporated in Burnett (2001).
In the first area, concerning cost saving objectives, SEB displays a very unified view of
their objectives with CRM. All SEB objectives within this area are viewed as to have
major importance. The CRM cost savings objectives in SEB is presented in table 6.19
Table 6.19 Cost Saving Objectives with CRM in SEB
Cost Saving Objectives None Minor Medium Major
Decrease general sales and marketing
administrative costs

Measuring results and proving return on
investments

Communicating and delivering the appropriate
values to each customer in ways the customer
wants to receive the information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Source: Author's own construction
When viewing table 6.19, it becomes clear that the analysis of SEB in terms of cost
saving objectives is not so difficult since all company goals are equal to the theoretical
ones. All are ranked as major importance, which lead to the assumption that SEB has
identified this area and realized that large benefits can be received. However, when
taking into consideration that the CRM project within the company was postponed, it is
questionable if all objectives can be achieved and if they all have major importance.
The second area regarding revenue enhancement is an area that all companies want to
achieve, despite CRM or not. In the study of SEB, once again the company perceives all
goals as major in terms of importance. The objectives are demonstrated in figure 6.20.
Table 6.20 Revenue Enhancement Objectives with CRM in SEB
Revenue Enhancement Objectives None Minor Medium Major
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will
affect in a positive manner.

Reach economies of scale by mass customization 
Use existing customer relationship to grow revenue 
Source: Author's own construction
- 82 -
The above displayed table demonstrates interesting observations regarding the case
study object, SEB. All their objectives are in line with the theories and the company
identified no other objectives. Moreover, when analyzing this, the interesting paradox
appears, SEB perceives the revenue enhancement objectives as high as the cost saving
objectives. Either, the company is very customer focused as they state in among other
things, their business mission. This is most certainly the case, but transactional motives
can also underlie the same revenue enhancement objectives as above stated, except to
use existing customer relationships to grow revenue.
To reach economies of scale by mass customization may disclose that the company
feels that CRM can cut corners in the work towards individual customers. This question
is raised since the company may generalize a customer categorized in a specific
segment and his or her preferences due to that another customer in the same segment
has revealed this.
The final area, strategic impact is also of great importance to SEB. The answers
received from SEB are displayed in table 6.21. Here, all objectives presented based on
the theoretical foundation of the thesis are ranked as major important to the company.
They are in line with the theories and therefore, once again, SEB focuses highly on area
of objective, in this case, strategic impact. Strategic impact objectives are highly
relationship-oriented in nature and SEB seems to aiming to fulfilling them.
Table 6.21 Strategic Impact Objectives with CRM in SEB
Strategic Impact Objectives None Minor Medium Major
Improve customer satisfaction 
Identifying those customer values that are
pertinent to a particular segment.

Understanding the relative importance of
customer values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
The analysis of SEB might become more interesting when combining the three different
classification areas and analyze the total amount of objectives within the company as
conducted in table 6.22
- 83 -
Table 6.22 Analysis of the Objectives with CRM in SEB
Cost Saving Objectives None Minor Medium Major
Decrease general sales and marketing
administrative costs

Measuring results and proving return on
investments

Communicating and delivering the appropriate
values to each customer in ways the customer
wants to receive the information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Revenue Enhancement Objectives None Minor Medium Major
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will
affect in a positive manner.

Reach economies of scale by mass
customization

Use existing customer relationship to grow
revenue

Strategic Impact Objectives None Minor Medium Major
Improve customer satisfaction 
Identifying those customer values that are
pertinent to a particular segment.

Understanding the relative importance of
customer values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
SEB appears to be the perfect case study object in terms of answers received relating to
this thesis first research question. SEB views all objectives as major important and
therefore has an equally large focus on cost saving, revenue enhancement and strategic
impact. This is both interesting and questionable. It might imply that SEB is very far
ahead in their CRM work but since the company postponed the new project, it could be
viewed, as the company does not perceive CRM as highly important in their line of
business.
The question that arises is, based on the postponement of the project, how CRM
objectives can have major importance or if the answers received should be regarded as
the intended goals of CRM. Without drawing any conclusions, the second answer
appears to be more logical. A company not perceiving CRM as so important that they
need to totally integrate it into the company, might not see all benefits of CRM as
major, since they alone would speak for the actual implementation of this relationship
oriented management view. Maybe we receive an answer that will clear our doubts
when analyzing the case against the following research questions.
- 84 -
6.4.2 The CRM Process in SEB
Financial custodian of the customer base. SEB has two major activities in the handling
of their customer base. Firstly, on a central level conducting analysis in order to find the
right and profitable customers. Moreover, to develop new customer handling processes
to ensure good and high service level in the customer contacts with the already
established customers. Secondly, on a local level, the most important activity is to have
good knowledge about the customer base. SEB is working towards the spirit of Peppers
& Rogers (1998) theoretical proposition. However, their thinking seems to be
systematical with mechanistically influences at the same time as they are focusing on
individual customers in an, as we see it, attempt to mass-customize its activities.
Production, Logistics, and Service Delivery. SEB acts in accordance with Pepper &
Rogers (1998), when the customer is an active participant in the selling process. This is
due to that the customer is closely involved in the actual production of the service or
product. In the area of integrating production into the marketing process has not SEB
reached so far as Peppers and Rogers (1998) suggest. However, the strive is to integrate
the marketing functions more in the production function by using existent customer
knowledge regarding preferences and wants in the product development process.
Market Communication, Customer Service, and Interaction Dialogue. The CRM system
within SEB is in full accordance with Peppers & Rogers (1998) when it ensure that the
dialogue with a customer today picks up where it left off yesterday as well as it enables
customer feedback and act as a base for customization. The ability to transfer customer
information both in channels and to some extent between channels is of great
importance when the stored information becomes more accurate and available for
different users.
Sales Distribution and Channel Management. This is not a complex issue for SEB since
all channels are owned and controlled by the bank.
Knowledge discovery. SEB is well in line with Swift (2001) in the area of knowledge
discovery and particularly regarding their ability to transfer information across different
channels.
Market planning. The market planning process in SEB is mostly focusing on customer
activities. This view is to some extent product oriented when customer is matched to
product and not the opposite. The banks ambition is in line with Swift (2001) when it
focuses on the use of existing customer information to refine product offering and to
offer the customer the right product, at the right time, using the right channel.
Customer Interaction. The bank is working in accordance with Swift (2001) in the area
of customer interaction. The bank has created different interaction channels for different
customers and it is up to the customer to choose a channel that suits him. However, a
customer who wants to use a specific channel must accept the cost of using it. Based on
this, the bank tries to guide customers into the most appropriate channel for both parties
so this creates a win-win situation.
Analysis and refinement. SEB is working in line with the theory by Swift (2001) when
collecting, and analyzing customer information to be able to customize offers and
- 85 -
service towards individual customers. SEB also states that feedback is received in all
this stages, which is according to Swift (2001) a important criteria for customization.
6.4.3 CRM´s Affect on the Organizational Structure in SEB
SEB will in this section be analyzed by comparing the theories in the frame of reference
with the empirical data collected. Starting with the first section, dealing with the
organizational design variables by Galbraith & Kazanjian (1986)
Structure. SEB states that there has been no change of organizational structure
regarding division of labor, departmentalization, and distribution of power etc.
Information and decision processes. Furthermore, the company states that CRM has had
a minor impact on the information and decision process regarding planning and control.
Reward systems. In terms of reward system, this has been affected by CRM since
relationships with customers are valued higher and the actual sales figures has decreased
in impact when setting the criteria's for salary, bonuses and other form of
compensations
People. The company aims at hiring people with customer-focus skills but also people
with specific CRM qualities. SEB have been affected by the implementation of CRM
and has conducted training and education in the area.
Task. The company states that CRM to some extent has affected the relationship
between organisational units regarding their interdependency, diversity and degree of
uncertainty. The answers received from the company are presented in table 6.23.
Table 6.23 Organizational Design in SEB Affected by CRM
Organizational design variables Affected by CRM
Structure No
Information and decision processes Yes
Reward System Yes
People Yes
Task Yes
Source: Author's own construction
As Galbraith & Kazanjian (1986) states, five organizational design variables need to be
coped with when altering organization of the company. When addressing table 6.20, it is
easy to identify that SEB has altered some design variables. The structure has not been
affected or changed due to the introduction of CRM and therefore the company and
theory is not in line concerning this variable. The information and decision process is
however something where the company agrees with the afore-mentioned theory, but
only to a minor extent. One area where both SEB and the theory by Galbraith &
Kazanjian (1986) are in accordance refers to the variable concerning the reward system.
Today, customer relationships are valued much higher and sales figures have decreased
in importance when addressing issues such as salary and bonuses. The people variable
have also been affected by CRM to a minor extent in particularly regards to education
and training, since SEB mostly have been in the process of downsizing the organization
and therefore have had little room for hiring new employees. The task has been affected
- 86 -
since the bank consists of two parts: production units and the retail bank. The
production units are by nature very eager to sell their products to so many customers as
possible. The retail bank acts as an emissary for the customer aiming to fulfil their needs
and wants towards the rest of the organisation, and therefore Galbraith & Kazanjian
(1986) and SEB goes hand in hand.
When addressing the second issue as stated by McDermott in Peppers & Rogers (1999),
the shift from transactional based to relationship-oriented view. How SEB perceive the
organizational change variables and their affect by CRM is presented in table 6.24.
Table 6.24 Organizational Change in SEB Affected by CRM
Organizational change variables Affected by CRM
Automation Yes
Attrition No
Reorganization No
Training and Education Yes
Empowerment Yes
Source: Author's own construction
The company states that increasing availability of information in the company is
necessary. The analysis of this section reveals that SEB in many areas act accordingly to
the theoretical propositions stated by McDermott in Peppers & Rogers (1999). The
company has a high level of technology to ease the transfer of information between
different employees. Nevertheless, the respondent states that this process is not
perfected and further attention is necessary. Therefore it can be argued that SEB in this
area agrees with theory to a medium extent. Attrition as defined by McDermott is not in
line with the empirical finding in SEB since the company has been forced to diminish
the organization; no room has been left for this area.
Reorganization has occurred in the company but not due to the introduction of CRM
and the shift as McDermott in Peppers & Rogers (1999) states, from transactional based
to relationship oriented. The shift in organization is based on the overall shift in the
financial industry, not due to CRM and therefore the company does not follow the
theory. However, in terms of training and education, this has been done to increase the
awareness of the employees in areas regarding customer satisfaction mostly on a local
level. Despite that, SEB acts according to the theory.
Empowerment, the last area covered in the theory is another topic where the company
goes hand in hand with the theory to some extent. The company gives certain
possibilities for employees to act individually but as long as they follow the company
overall guideline.
The last area regarding this research question, the marketing organization is based on
the theory by Swift (2001), which describes how companies can structure their CRM
marketing organization with a basic idea to focus around the key communication and
interaction process.
The roles in the marketing organization at SEB are as follows. The central market
function coordinates the marketing process in the company. The head of this function is
the sales & marketing director and the organizational seat for this position and function
is in the staff organization. Central market in cooperation with analysis identifies the
- 87 -
right customer and business opportunities for SEB. Thereafter central market is tailoring
the right offer towards the customer. The presentation of the offer towards the customer
is also made by the central market function. The retail bank is one of several channels
that manage the customer interaction. Swift (2001) states that one task is to coordinate
the marketing process and here SEB act accordingly since the central marketing
function covers this task. Furthermore, the same department also handles the
identification of the right customer but also the creation of proper offers. This is also in
line with the theory by Swift (2001). Moreover, the actual presentation of the offer and
time for presentation is handled from a central level.
6.5 Within Case Analysis of FöreningsSparbanken AB
In this section, the final within case analysis of the thesis involving the company
FöreningsSparbanken will be displayed. Here, the empirical data obtained from the
company will be compared with the theoretical based frame of reference.
6.5.1 The Objectives of CRM in FöreningsSparbanken
The main CRM objective of FöreningsSparbanken is to find the right customer and
provide the right offers for each customer. Furthermore, to use the right channel to
provide the right offers as well as providing it on the right time is also essential. This
objective is in line with our proposed theoretical foundation presented in our frame of
reference, due to the incorporation of Swift (2001) into Burnett (2001).
FöreningsSparbanken identified only one major cost saving objective with CRM and
that is to decrease general sales and marketing administrative costs. Two other
objectives are ranked as medium important and that is Newell's (2000) objective to
communicate and deliver right value in the right way. Kalakota & Robinson's (1999) to
introduce replicable and consistent channel processes and procedures are also viewed as
medium important to the company. FöreningsSparbanken states that measuring results
and proving return on investment is only of minor importance and assuring customer
loyalty by after-sale service/support is not regarded as a objectives based on that the
company believes that they produce a service that is consumed upon delivery. The
objectives with CRM in regards to cost saving issues are displayed in table 6.25.
Table 6.25 Cost Saving Objectives with CRM in FöreningsSparbanken
Cost Saving Objectives None Minor Medium Major
Decrease general sales and marketing
administrative costs

Measuring results and proving return on
investments

Communicating and delivering the appropriate
values to each customer in ways the customer
wants to receive the information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Source: Author's own construction
- 88 -
In terms of analyzing the data collected from FöreningsSparbanken, the company's
objective with CRM in regards to cost saving objectives agrees with the theories
presented in the frame of reference. Merely one objective, to assure customer loyalty by
providing after-sale service support was not regarded FöreningsSparbanken. The major
motive for CRM from a cost saving perspective is to lower general sales and marketing
administrative costs. Medium important reasons is to communicate and deliver the right
values to each customer segment in the right way but also applying Kalakota &
Robinson's (1999) goal to introduce consistent, replicable processes and procedures.
The objectives for CRM in the company agrees with the theory and the logical choice
that after-sale service/support was not selected since FöreningsSparbanken produces
services that are mostly consumed upon production.
FöreningsSparbanken has one major objective in terms of revenue enhancement and
that is to use existing customer relationships to grow revenue since the company
strongly believes that it is more expensive to sell to a new customer than an already
existing one. Increase sales revenues, increase margins, and determine if delivery of
customer values will affect in a positive manner and reach economies of scale by mass
customization are all goals listed as medium important to the company. To increase win
rates are only regarded as a goal of minor important and are along with the other
objectives in this classification specified in table 6.26.
Table 6.26 Revenue Enhancement Objectives with CRM in FöreningsSparbanken
Revenue Enhancement Objectives None Minor Medium Major
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will
affect in a positive manner.

Reach economies of scale by mass
customization

Use existing customer relationship to grow
revenue

Source: Author's own construction
Relationship marketing is founded on believes that for a company to prosper, one must
use their already existing customers, establish a mutual benefit i.e. relationship with
them and hence be more successful. FöreningsSparbanken's all answer is in accordance
with theory and the prime motive for CRM in terms of revenue is to use existing
customers, also in accordance with relationship marketing theories. The four other
objectives market as medium important may reveal that FöreningsSparbanken either has
proved that relationship orientation is more successful or that the transactional focus of
increasing sales revenue, increasing margins and mass customization is still dominate.
The last issue is strategic impact objectives and FöreningsSparbanken states that their
major objectives in terms of strategic are as Burnett (2001) states to improve customer
satisfaction. Furthermore, to identify customer values that are pertinent to a specific
customer segment and build personal relationships are also classified as major
objectives. The two remaining objectives are ranked as medium and those are according
to the company, understand the relative importance of customer values to each customer
segment and use integrated information for excellent services. These objectives are
presented in table 6.27.
- 89 -
Table 6.27 Strategic Impact Objectives with CRM in FöreningsSparbanken
Strategic Impact Objectives None Minor Medium Major
Improve customer satisfaction 
Identifying those customer values that are
pertinent to a particular segment.

Understanding the relative importance of
customer values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
All the above-mentioned theoretical objectives are confirmed by FöreningsSparbanken
to be empirical objectives of the company. All are marked as at least medium
importance and it is clear that FöreningsSparbanken focus strongly on the strategic
impact of CRM. Nevertheless, the company's objectives are in line with the theoretical
ones in this area. When combining the different classification into one table as in table
6.28, interesting results may appear as well as the development of questions.
Table 6.28 Analysis of the Objectives with CRM in FöreningsSparbanken
Cost Saving Objectives None Minor Medium Major
Decrease general sales and marketing
administrative costs

Measuring results and proving return on
investments

Communicating and delivering the appropriate
values to each customer in ways the customer
wants to receive the information.

Assure customer loyalty by providing after-sale
service/support.

Introducing consistent, replicable processes and
procedures

Revenue Enhancement Objectives None Minor Medium Major
Increase sales revenues 
Improve win rates 
Increase margins 
Determining if delivery of customer values will
affect in a positive manner.

Reach economies of scale by mass
customization

Use existing customer relationship to grow
revenue

Strategic Impact Objectives None Minor Medium Major
Improve customer satisfaction 
Identifying those customer values that are
pertinent to a particular segment.

Understanding the relative importance of
customer values to each customer segment.

Build personal relationships 
Use integrated information for excellent service 
Source: Author's own construction
In the above conducted analysis of each classification it has been stated that
FöreningsSparbanken's objectives agrees with the theoretical foundation of the frame of
reference. The company focuses most likely at all three different areas, cost saving,
revenue enhancement and strategic impact. It seems however that the prime focus is
- 90 -
more of a strategic impact than the two additional categories. Therefore one might argue
that FöreningsSparbanken sees CRM as firstly a tool for strategic impact and secondly
cost saving and revenue enhancement. FöreningsSparbanken shows clear signs that they
are customer-focused but still CRM has yet been a completely established management
view within the company. Despite that, the company focus on the strategic segment are
both interesting but also it may come as a surprise to many financial customers since
that industry has been under the transformation the recent years towards less bank
offices and more non-personal interactions.
6.5.2 The CRM Process in FöreningsSparbanken
Financial custodian of the customer base. The most important activity in
FöreningsSparbanken regarding the custodian of the customer base is to act as a link
between the local branch offices employees and their customers. By doing that a unified
view and management of the local activities towards the customers is controlled and
monitored from a central position. This activity is not in line with the theoretical
proposition by Peppers & Rogers (1998). Furthermore is conveys a product oriented
approach to handle its customers developed centrally in the bank.
Production, Logistics, and Service Delivery. A customer is an active part in the sales
process, since their preferences, wants and needs are revealed at that particular moment.
FöreningsSparbanken is here in line with the theory by Peppers & Rogers (1998) when
they receive and store customer information that can be used for customization of
product and services towards the individual customers needs and wants. Due to the fact
that the different business areas has a strong position in the company, their own
objectives have influenced the marketing function. With this in mind we can only state
that FöreningsSparbanken is partly in line with the theory. This implies that
FöreningsSparbanken have a strong product oriented influence that needs to be more
relationship marketing influenced by a stronger customer focus.
Market Communication, Customer Service, and Interaction Dialogue. The CRM system
within FöreningsSparbanken is in accordance with Peppers & Rogers (1998) when it
ensures that the dialogue with a customer today picks up where it left off yesterday as
well as it enables customer feedback and a base for customization. However, the ability
to transfer customer information is to some extent not in line with Peppers & Rogers
(1998) when information only can be transferred within and not between channels.
Sales Distribution and Channel Management. This is no complex issue for
FöreningsSparbanken since all channels are owned and controlled by the bank.
Knowledge discovery. FöreningsSparbanken is in line with Swift (2001) in the area of
knowledge discovery. However, their ability to transfer information across different
channels is reducing their performance to customize offers and services.
Market planning. The market planning process in FöreningsSparbanken is aiming to
support the ongoing work with creating relationships between the company and their
customers. On a central level they try to coordinate customer interaction and initiatives
from different business areas. These activities can either be aiming for a specific
customer segment or individual. The banks ambition is well in line with Swift (2001)
when it focuses on investments in the relationship that hopefully will strengthen it.
- 91 -
Customer Interaction. The bank is working in accordance with Swift (2001) in the area
of customer interaction. The bank has developed several interaction channels for
different customers and it is up to the customer to select a suitable one. As we can see it
is FöreningsSparbanken handling their customer interaction in line with Swift (2001).
Analysis and refinement. FöreningsSparbanken is working in line with the theory by
Swift (2001) when collecting, and analyzing customer information to be able to
customize offers and service towards individual customers. FöreningsSparbanken also
states that feedback is received in all this stages, which is according to Swift (2001) an
important criterion for customization.
6.5.3 CRM´s Affect on the Organizational Structure in FöreningsSparbanken
Structure. FöreningsSparbanken organizational structure has today not been affected by
CRM in term of shape, distribution of power, division of labor etc.
Information and decision processes. Furthermore, FöreningsSparbanken cannot say that
CRM has affected the information and decision process from a CRM perspective. The
company has not taken CRM into the organization and followed it to 100 percent.
Reward systems. According to the respondent, every change in an organization can also
mean alterations in the reward and promotion system. They define this system as a tool
for the future, in which the company measures customer- and employee satisfaction.
However, today there has been no affect from CRM in this area.
People. Since FöreningsSparbanken has a customer-focused view on how to do
business, people with those qualities are wanted. However, the specific criteria of each
employee differs a lot due to which customer segment and business area the employee is
intended to work. Training and education within the area of CRM have been conducted.
Task. CRM has in FöreningsSparbanken affected the relationship between the
organizational production and business units. According to the respondent, CRM has
affected the different organizational part and their relationships to a minor extent. The
above-received answers are presented in table 6.29.
Table 6.29 Organizational Design in FöreningsSparbanken Affected by CRM
Organizational design variables Affected by CRM
Structure No
Information and decision processes No
Reward System No
People Yes
Task Yes
Source: Author's own construction
When analyzing this last case study object, FöreningsSparbanken, it appears that the
company and Galbraith & Kazanjian (1996) perceive the organizational design variables
of different importance. FöreningsSparbanken does not recognize that: structure,
information and decision processes, and reward systems have been affected by the
introduction of CRM and therefore differ from the theory. The variables that
FöreningsSparbanken and Galbraith & Kazanjian (1986) agree upon are people and
task.
- 92 -
In regards to McDermott (1999), FöreningsSparbanken and their given answers are
presented in table 6.30.
Table 6.30 Organizational Change in FöreningsSparbanken Affected by CRM
Organizational change variables Affected by CRM
Automation Yes
Attrition No
Reorganization No
Training and Education Yes
Empowerment Yes
Source: Author's own construction
McDermott in Peppers & Rogers (1999) argues, like FöreningsSparbanken that
automation is needed. The company has in accordance with the theory begun to file
information electronically to ease access for the employees. The analysis of this variable
indicates the company act as the theory stipulates. The following variable, attrition has
been hard for the company to follow. Nevertheless, despite downsizing within the
organization, FöreningsSparbanken has identified the need to have customer-focused
employees and therefore tries to find those individuals. Based on that, the analysis leads
to the result that the company acts as the theory suggest to their best ability.
In regard to reorganization as McDermott (1999) states, FöreningsSparbanken has not
made any alteration to the organization based on the introduction of CRM and therefore,
this is an area where theory and empirical data obtained for FöreningsSparbanken goes
separate ways. Training and education are also not used to a wide extent in terms of
CRM. Mostly it is done on a local level since the concept is not established completely
within the company. So, once again, theory and actual empirical finding differs to some
extent, in their view of relative variable importance. As a former general, McDermott
mean that empowerment should be facilitated, which should result in a flexible
organization that let each employee that have customers contact act in a way that fulfills
the customer wants and needs to the maximum ability. FöreningsSparbanken has done
so and therefore follows the theoretical propositions.
The final section covers the five important roles in the marketing organization defined
by Swift (2001). In regards to how CRM have hade any impact on the roles, the
respondent states that this is an ongoing process within FöreningsSparbanken and is
therefore hard to specify. The manager in charge of the retail banking section is today
handling the business or marketing processes in the company. Moreover, the respondent
further says that the campaign manager is responsible for both identification of the right
customer, creation of right offer to that customer and decision on when the offer shall be
presented. The local bank office is handling the interaction with the customer.
The analysis of this section reveals that FöreningsSparbanken act as Swift (2001) wants
them to despite that they have not identified the need to further divide the work tasks
into more positions. The retail banking section act as Swift (2001) suggests in terms of
CRM Marketing VP, the title may differ but their responsibilities are the same. The
campaign manager handles both identification of the right customer, the creation of the
right offer and when it should be presented. In theory, those tasks are divided upon three
different positions but still, FöreningsSparbanken acts to a large extent as theory
suggest. The offer is presented in several channels and the interaction is handles by the
bank. Nevertheless, FöreningsSparbanken once again acts as Swift (2001) stipulates.
- 93 -
6.6 Cross Case Analysis
This second part of the chapter deals with the cross case analysis. The four cases will be
compared with each other in order to try to see tendencies and identify causes for
possible outcomes.
6.6.1 The Objectives of CRM
In table 6.31, we have displayed the findings of each case in order to discover
differences and similarities in how the investigated companies views the objectives of
CRM in terms of importance.
Table 6.31 A Comparison of the Objectives with CRM
Cost Saving
Objectives
Skanska SKF Scania SEB Förenings
Sparbanken
Decrease general sales and
marketing administrative costs
Major Minor Medium Major Major
Measuring results and proving
return on investments
Medium Medium Medium Major Minor
Communicating and delivering
the appropriate values to each
customer in ways the customer
wants to receive the
information.
None Major Major Major Medium
Assure customer loyalty by
providing after-sale
service/support.
Medium Major Major Major None
Introducing consistent,
replicable processes and
procedures
None Minor Medium Major Medium
Revenue Enhancement
Objectives
Skanska SKF Scania SEB Förenings
Sparbanken
Increase sales revenues Minor Medium Medium Major Medium
Improve win rates Major Medium Major Major Minor
Increase margins Minor Major Major Major Medium
Determining if delivery of
customer values will affect in
a positive manner.
Minor None Medium Major Medium
Reach economies of scale by
mass customization
None Minor None Major Medium
Use existing customer
relationship to grow revenue
None Major Major Major Major
Strategic Impact
Objectives
Skanska SKF Scania SEB Förenings
Sparbanken
Improve customer satisfaction None Major Major Major Major
Identifying those customer
values that are pertinent to a
particular segment.
None Medium Medium Major Major
Understanding the relative
importance of customer values
to each customer segment.
Minor Medium Medium Major Medium
Build personal relationships Minor Major Medium Major Major
Use integrated information for
excellent service
Medium Medium Major Major Medium
Source: Author's own construction
- 94 -
It is interesting to see that all the investigated companies does not one time agree with
the importance of the stated theoretical objectives of CRM. In many cases, the case
study objects perceive the objectives as presented but their importance differs.
Moreover, these differences can be interesting to observe since two companies within
the financial industry, FöreningsSparbanken and SEB have been used. Scania and SKF
may be classified as manufacturing companies and therefore, their similarities and
differences should be observed with interest. Skanska as a construction company may
also demonstrate the industrial market and give interesting answers.
When referring to the first area of objectives, cost saving, as mentioned by Burnett
(2001), all companies have stated at least on of the presented objectives as major. SKF
and Scania have ranked the same two objectives; to communicate and deliver the right
values to each customer in the right way but also to assure customer loyalty by after-
sale service/support. Skanska, like FöreningsSparbanken and SEB regards decreasing
general sales and marketing administrative costs as the major objectives in terms of cost
saving. Skanska for instance, has regarded the objective to communicate and deliver the
appropriate values to each customer in ways the customer wants to receive the
information, as of no importance in contrast to the other companies that perceive this as
at least medium important. Furthermore, to decrease sales and marketing administrative
cost and measuring results and proving return on investments are the only two
objectives that are thought to be an overall goal for all the companies since all has
marked them despite various importance.
The second area of objectives, revenue enhancement, is an interesting category since
many of the objectives can be perceived to be transactional oriented if regarded falsely.
The name of the game in every business activity is to make money and to stay
competitive, it may be important to increase sales, a objective which is regarded by all
the case study objects as important but SEB is the only one who views this as a major
objective with CRM. The second objective to increase win rates is another important
area in business activities despite what line of industry the company operates in. Here,
once again all the companies have a similar picture of this objective and rank it as at
least minor important, as stated by Skanska. Increase margins is another way to make
the company more profitable and once again all companies agree with differences in the
objectives relative importance. All those three objectives can be very transactional when
taken out of the CRM concept and may very well be used as objectives in a non-CRM
company or organization, Nevertheless, in this formulation and under the CRM view,
they constitutes objectives that companies that uses CRM can benefit from.
The following three objectives are more interesting to observe. Not that they are more
important but that at least one of the companies has disregarded each of the following
objectives and ranked it as no importance. What also may be noticeable is that all those
companies are the manufacturing companies, and as previous mentioned in the thesis,
industrial companies tend to be very transactional-oriented but they try either to change
that or hide the fact that relationship marketing is poorly implemented in those types of
companies. Firstly, to determine if delivery of customer values will affect the company
in a positive manner is regarded as a objective with CRM in all companies except SKF.
Moreover, to reach economies of scale by mass customization is not perceived by either
Skanska or Scania as an objective of CRM, but ranked as major by SEB, medium as
FöreningsSparbanken and minor by SKF.
- 95 -
The last objective of revenue enhancement benefits with CRM may be the most
interesting one in this category when making the cross case analysis. Once again, not
because it is most important but more based on that this objective, to use existing
customer relationship to grow revenue is a basic, relationship-oriented focused formed
in the school of relationship marketing. Here, SKF, Scania, FöreningsSparbanken and
SEB all rank this objective as major based on their mutual belief that it is cheaper and
more effective to sell to an established customer than a new one. Basic transactional
marketing also argues that it is more expensive to sell to a new customer and an old one.
Therefore, it is highly surprising that a company such as Skanska perceive this goal as
no importance. Could this maybe be based on the fact that Skanska is not really
relationship-oriented due to their line of industry or current market condition?
Strategic impact is the final of the three categories of CRM objectives by Burnett
(2001). The five proposed theoretical goals are regarded by at least on company as
important and since no other objectives of this sort was identified by either case study
object, the data received agrees highly with the theories. When making the cross case
analysis between the companies involved in the thesis it once again becomes clear that
no goal has received the same ranking by all the involved companies.
The first objective, to improve customer satisfaction is as mentioned under the cost
saving objectives and the objective to use existing customer relationships to grow
revenue, based from relationship marketing. Every company should if their focus is
long-term aim to improve customer satisfaction, mainly due to that customers are not
endless and therefore if customers are treated without giving them satisfaction, they will
soon run out of number. All companies, except Skanska, rank improving customer
satisfaction as major.
The interesting part is not that Skanska differs in their view of the relative importance of
this objective but the fact that the company sees this objective as of no importance what
so ever. Just like the issue concerning to use existing customer relationships to grow
revenue, once again, the question arises why this is not perceived as at least some
importance. This could be regarded as the most important strategic impact objective in
general and this increases the attention brought to the answer received from Skanska.
Finally, this goal may be labeled as the most important strategic impact objective with
CRM when adding the answers received from the different companies.
Furthermore, to identify customer values that are pertinent to a particular, Skanska also
neglects this goal, but the other companies rank this as medium or more and the
following goal that are interrelated to the previous mentioned are ranked as medium by
SKF, Scania and FöreningsSparbanken. SEB that marked all goals with major differs
from the majority as well as Skanska that regard this goal as minor.
The next objective, to build personal relationship constitutes the foundation of CRM or
relationship-orientation. Three companies, SKF, FöreningsSparbanken and SEB
conclude with this theoretical proposition and mark this objective as high. Scania view
this as a medium important objective. To build personal relationships with their
customer is in Skanska only regarded as minor and once again Skanska may reveal them
selves as highly transactional focused. The final objective, to use integrated information
for excellent service is important for all companies and has therefore got medium or
major importance ranking from all case study objects.
- 96 -
To sum up, the cross case analysis of research question one, all three classifications by
Burnett (2001) are used by Swedish companies. We can also see that the majority of the
companies in this study had at least one major objective in each classification. However,
we are not able to accurately identify which area of classification that is most important
for Swedish companies.
6.6.2 The CRM Process
Table 6.32, list our conceptual framework for research question two and shows, within
each case, if a similarity was identified, partially identified, or not identified.
Furthermore, the specific issues, which we were unable to find correlations or
deviations to, are marked with a question mark.
Table 6.32 A Comparison of the CRM Processes
How can the CRM
processes be described
Skanska SKF Scania SEB Förenings
Sparbanken
Financial custodian of the
customer base.
Yes Yes Yes Yes Yes
Production, Logistics, and
Service Delivery
Yes Yes Yes Partly Partly
Market Communication,
Customer Service, and
Interaction Dialogue
Yes Partly Yes Yes Partly
Sales Distribution and
Channel Management
Yes No Partly Yes Yes
Knowledge discovery Yes Yes Yes Yes Yes
Market planning Yes Yes Partly Yes Yes
Customer interaction Partly Partly Yes Yes Yes
Analysis and refinement ? Yes Yes Yes Yes
Source: Authors own construct.
As visualized in table 6.32, there are a lot of similarities between our cases when it
comes to our second research question of how CRM processes in Swedish companies
can be described. As for the Financial custodian of the customer base all five cases was
in accordance with the theory. Production, Logistics, and Service Delivery was also in
line with the theory and to some extent only partially in SEB and FöreningsSparbanken.
In the area of Market Communication, Customer Service, and Interaction Dialogue
were also three companies in line with the theory and SKF and FöreningsSparbanken
was partially in line with the theory. Three companies handled Sales Distribution and
Channel Management in accordance with the theory and Scania partially differed. Here
it is very interesting to note that SKF differed from the theory and the rest of the
companies when they didn't act according to the theory. Regarding Knowledge
discovery was all five companies in line with the theoretical suggestion. In the area of
Market planning was Scania partially in line and the other four companies in line with
the theory. Skanska and SKF handled Customer interaction only partial in line with the
theory, while the other three companies managed it in accordance with the theory. The
Analysis and refinement process was performed as the theory suggested in four of the
companies and for the fifth company; Skanska we couldn't identify this process since
the respondent didn't disclosed any information.
- 97 -
6.6.3 The Affect CRM has on the Organization
Table 6.33 lists our conceptual framework for research question three and shows, within
each case, if similarities was identified, or not identified.
Table 6.33 A Comparison of the Organizational Design Variables
Affected by CRM
Organizational
design variables
Skanska SKF Scania SEB Förenings
Sparbanken
Structure No No Yes No No
Information and
decision processes
Yes No Yes Yes No
Reward System No No Yes Yes No
People Yes Yes Yes Yes Yes
Task No No No Yes Yes
Source: Author's own construction
When comparing the five case study objects, that all stipulates to be involved in CRM
activities, it may come as a surprise as shown in table 6.33 since many of the theoretical
proposed variables by Galbraith & Kazanjian (1986) were not identified and affected
when introducing CRM in the companies. In regards to the first variable, structure,
CRM had not affected any of the companies' organization except Scania. Despite that
many of the companies might have identified a potential need to change the
organizational structure, this is something than cannot be altered over night and should
be perceived as fixed on a short-run basis. Furthermore, all companies today have most
likely organizational structures that support current business operation but CRM is
changing the way companies conduct business and therefore it is likely that this variable
will have greater affect in the future.
Information and decision processes are the second variable presented by theory and this
is an area where we can see the largest similarity between the cases and theoretical
suggestion. The introduction of CRM leads to increased customer knowledge and this
implies that information and decision processes early might be affected when the
company receives a more accurate foundation for the decisions that enables
customization to a greater extent.
The third variable refers to reward system and how the use of CRM has affected the
companies' policy in this area. It is very interesting to find that two companies, Scania
and SEB, were in line with the theoretical suggestion. These companies had also
identified the necessity of alteration in the information and decision processes and have
most likely retrieved benefits from earlier experiences when better customer knowledge
has led to improved business performance. They are now as we see it, entering the next
stage in their CRM maturity compared with the other case study objects.
- 98 -
The fourth variable focusing on people is the only variable where all the case study
objects agree simultaneously with theory. All companies have realized the importance
of customer focused employees and therefore put a lot of effort into both identifying
those existing employees that posses those qualities but also when hiring new people in
position that require these kind of skills. Furthermore, all companies train and educate
their employees, according to Galbraith & Kazanjian (1986). However, we can from
this research see tendencies that these efforts are mainly on sales and marketing
personnel and not involving the entire company workforce.
In the final variable task, all manufacturing companies had not made any alterations in
this area regarding diversity, interdependency and uncertainty in their organization. We
were able to find that both FöreningsSparbanken and SEB, located in the financial
industry had made changes in this area. These changes was however small but indicate
that a shift in this area towards the theoretical propositions is undergoing. To sum up
Galbraith & Kazanjian (1986) organizational design variables, we can see that CRM
have not affected all variables in a singe company. In all studied companies, at least one
variable remained unaffected by the use of CRM.
McDermott in Peppers & Rogers (1999) suggests five company change variables that
are needed to alter when shifting from transactional focused to relationship-oriented.
The answers received from the companies are displayed in table 6.34 according to our
conceptual framework for research question three and shows, within each case, if
similarities was identified, or not identified.
Table 6.34 A comparison of the Organizational Change variables
Affected by CRM
Organizational
change variables
Skanska SKF Scania SEB Förenings
Sparbanken
Automation Yes Yes Yes Yes Yes
Attrition No No Yes No No
Reorganization No No Yes No No
Training & Education Yes Yes Yes Yes Yes
Empowerment Yes No Yes Yes Yes
Source: Author's own construction
The first organizational change variable automation shows that all companies despite
their line of industry has made efforts concerning increased access of information due to
computerization. This indicates that Swedish companies has adapted to the theoretical
suggestions by McDermott in Peppers & Rogers (1999) in this area. However, we
cannot clearly state that these adaptations are due to CRM or other reasons.
When comparing the five case study objects in the area of attrition only one company
has made alterations towards the theoretical ideas of McDermott in Peppers & Rogers
(1999) Some of the other companies stated that attrition had been used but not due to
CRM. This indicates that CRM had not been established in the companies' management
of human resource.
- 99 -
In regards to the third variable, reorganization, only one company has adopted to the
theoretical foundations presented by McDermott in Peppers & Rogers (1999). It is
interesting to notice that it is Scania that is in the forefront of this area. In the analysis
above, Scania has demonstrated a willingness to adapt to theoretical suggestions in the
area of CRM's affect on the company organization. We are of the opinion that this
change variable is probably the most difficult to implement and therefore, the
companies' mature ness must be high before taking this step.
Training & Education is an area where all companies agree with the theory by
McDermott in Peppers & Rogers (1999) to some extent. However, as mentioned before
only certain categories of employees have been attending this training and education
programs. This indicates that more efforts must be made before a customer-focused
organization is developed.
Empowerment is the final organizational change variable presented by McDermott in
Peppers & Rogers (1999). When comparing the companies used in this thesis, we can
see that SKF is the only company that does not agree with the theoretical suggestions.
However, all other companies work in line with the theory or towards the theoretical
suggestions. These alterations enable according to the theory a more flexible
organization that eases a customer centric approach. This indicates that Swedish
companies have good opportunities to use initiatives from individuals in their change
process towards a more customer centric company.
McDermott's organizational change variables in Peppers & Rogers (1999) are fully
used by only one company, Scania. All the other companies have at least two variables
that are unaffected by CRM.
The last part of research question three refers to Swift (2001) and the five positions in
the marketing organization needed when using CRM. The answers received from the
companies are displayed in table 6.35 according to our conceptual framework and
shows, within each case, if similarities were identified, or not.
Table 6.35 A Comparison of the CRM Marketing Organization
Handled in the company byPositions
suggested
by Theory
Skanska SKF Scania SEB Förenings
Sparbanken
CRM
Marketing VP
Chief Marketing
Officer or
District Manager
Channel
Manager
Regional
Manager or
Distributor or
Retailer
Sales and
Marketing
Director
Head of Retail
Banking
CRM
Marketing
Analyst
Chief Marketing
Officer or
District Manager
Channel
Manager
Distributor or
Retailer
Sales and
Marketing
Director and
Marketing
Analysis
Campaign
Manager
CRM
Campaign
Manager
Project Team Channel
Manager
Distributor or
Retailer
Sales and
Marketing
Director
Campaign
Manager
CRM Segment
Manager
Chief Marketing
Officer or
District Manager
Channel
Manager
Distributor or
Retailer
Sales and
Marketing
Director
Campaign
Manager
CRM Channel
Manager
Project Team Channel
Manager
Distributor or
Retailer
Sales and
Marketing
Director
Local Bank
office
Source: Authors own construction
- 100 -
When analysing the last part of research question three, one can see that no of the case
study objects have organized their marketing organization in accordance with
theoretical proposition by Swift (2001). The work task in the suggested marketing roles
by Swift (2001) was handled in all companies by fewer roles than described in the
theory. In two companies, SKF and Scania these five different roles were appointed to
one singe position. Regarding Skanska and SEB these theoretical suggested positions
were appointed to two different positions. Finally, FöreningsSparbanken had followed
the theoretical guidelines most and thereby appointed the five different roles to three
different positions.
These findings indicate or guide towards that Swedish companies not have adapted to
the theoretical suggestions in this area. Moreover, this can also indicate that the roles in
the companies marketing organizations are still transactional oriented. If this is true the
result will most probably be that the companies will not receive the full benefits of
CRM. This could have affects when the companies conduct internal analysis of the
overall business performance, which will most certainly give a false indication in
regards to how well the CRM strategy works for the company. This can have impact on
how the company's further CRM expansion will be executed.
- 101 -
7. Conclusions and Recommendations
The previous chapter provided an analysis of the data collected in this study. In this
chapter, conclusions will be drawn from the findings in the analysis and in this way we
will try to answer the three research questions posed in chapter one. In the final part of
this chapter we will give our recommendations to management of the companies in this
research. We will also give recommendations for theory and for further research within
the area studied.
7.1 Conclusions
The results drawn from this study should be viewed in the light of the research methods
employed and is valid for this sample. The study provides substantial support as to the
applicability of many of the variables and respective conceptualizations provided in
theory to the study of CRM in companies. The frame of reference was also shown to be
well suited to the investigation of how companies use CRM.
The First Research Question. Firstly, we will try to answer our first research question
that reads: "How does Swedish companies perceive the objectives of CRM?"
It can be concluded that the objectives with CRM found in this thesis that seems to be
valid regardless of business context is:
! Decreased general sales and marketing administrative costs.
! Measuring results and proving return on investments.
! Communicating and delivering the appropriate values to each customer in ways the
customer wants to receive the information.
! After-sale service/support.
! Introducing consistent, replicable channel processes and procedures.
! Increased sales revenues.
! Improve win rates.
! Increased margins.
! Determine if delivery of customer values will affect positively.
! Reach economies of scale through mass-customization.
! Use existing customer relationship to grow revenue.
! Improved customer satisfaction rates.
! Identifying customer values that are pertinent to a particular segment.
! Understanding the relative importance of values connected to each customer
segment.
! Build personal relationships.
! Use integrated information for excellent service.
Of these objectives we can conclude that the following objectives are the most
important for Swedish companies engaging in CRM activities. In the area of cost saving
objectives with CRM, we can conclude that Swedish companies focus on the objective
to decrease general sales and marketing administrative costs through the use of CRM. In
the area of revenue enhancement, Swedish companies perceive the objectives to
improve win rates and increase margins as the most important ones as well as to use
existing customer relationship to grow revenue. The last area of objectives with CRM
refers to strategic impact and here Swedish companies focus on improved customer
- 102 -
satisfaction, to build personal relationships and to use integrated information for
excellent service as the major objective with CRM.
The second research question reads as follows: "How can the CRM process in
Swedish companies be described?" In this section we will try to provide an answer to
this question.
A major finding in this thesis is that Swedish companies to a large extent uses the CRM
processes that are suggested by the theory by both Peppers & Rogers (1998) and Swift
(2001). We can also from their answers see that the direction is towards a more
customer centric management of customer relations in these companies. We can
therefore describe the CRM processes in a Swedish company according to Swift (2001)
activity oriented CRM process in four steps:
! Knowledge discovery.
! Customer interaction.
! Market planning.
! Analysis & refinement.
Or/and as the steps that Peppers & Rogers (1998) suggests in his function oriented CRM
process:
! Financial custodian of the customer base.
! Production, logistics, & service delivery.
! Customer communication.
! Distribution & logistics.
Furthermore, this study also highlights that all studied companies has adapted the view
of the financial custodians of the customer base by Peppers & Rogers (1998) on treating
their customer base as a primary asset and to carefully managing their investment in this
asset. This thesis also concludes that production and logistic functions must be more
involved in the marketing process in order to be more capable to customize its actual
offering towards the needs and preferences of each individual customer as suggested by
Peppers & Rogers, (1998).
It is interesting to notice that one company, SKF hasn't applied to the ideas of Peppers
and Rogers (1998) on how to gain first hand customer information from the distribution
channels. This indicates that SKF can receive false or fragmented customer information
and that customisation can be difficult to execute. This will also lead to the
disadvantage that the customers are seen as a segment not as an individual customer.
We can also conclude that the inability to transfer customer information across national
borders or between distribution channels also is an obstacle that can obstruct or
complicate their ability to receive feedback, continue a dialogue from the spot is ended
earlier and to customize their offers. Another interesting finding in the area of CRM
processes is that one company, Scania has used forward integration in order to gain
control over daily operations and obtain customer information, which facilitates
customization.
- 103 -
Independently of how we describe the CRM processes in a Swedish company as
function oriented or action oriented, we can clearly state that Swedish companies has
accepted and implemented the processes that is a condition for handling customer as
individuals and not as a part of segment, i.e. the companies has gained a base for
implementing a customer centric view in its operations.
The Third Research Question. Finally, we will answer our last research question that
is: "How is the organization affected by the introduction of CRM in Swedish
companies?"
When comparing the five case study objects, that all stipulates to be involved in CRM
activities, it may come as a surprise since many of the theoretical proposed variables by
Galbraith & Kazanjian (1986), McDermott in Peppers & Rogers (1999) and Swift
(2001) were not fully affected when using CRM in the companies. We can therefore
conclude that the organizational structure in Swedish companies has not been affected
by the use of CRM to any larger extent.
We can conclude that the organizational design variable by Galbraith & Kazanjian
(1986), that have been most affected is people and especially in the area of training and
education trying to implement a customer focus. However, this effort has been mostly
targeting market and sales personnel and not the entire company work force. This
weakness will result in that CRM will work as a sales support system, not as the total
business concept it is intended to be.
In the area of organizational change variables by McDermott in Peppers & Rogers
(1999), we can conclude that two organizational change variables, automation and
training and education are affected within Swedish companies when using CRM. We
can also conclude in this area that the majority of companies have not taken any actions
towards changing the organizational structure or employee structure that the
organizational change variables, attrition and reorganization suggests. Steps in these
directions would ease the transformation towards the customer centric company.
The CRM marketing organization roles in Swedish companies differs from the
theoretical propositions by Swift (2001). We can conclude that Swedish companies have
not adapted to the theoretical suggestions in this area. Further conclusions can be drawn
form this fact, which shows that the roles in Swedish companies marketing organization
still are highly transactional-oriented.
Overall conclusions. We have in this thesis made three main findings. Firstly, Swedish
companies have well developed objectives with CRM that exist within the three
classification areas, cost saving, revenue enhancement and strategic impact. Secondly,
Swedish companies have accepted and implemented CRM processes that is a condition
for the transition to a customer centric company. Thirdly, the organizational structure in
Swedish companies has not been affected by the use of CRM due to that Swedish
companies have not adapted to the CRM business framework. Today, Swedish
companies mostly use CRM as a sales and marketing support system.
- 104 -
7.2 Recommendations for Management
After concluding this thesis, we have come up with a number of issues we feel can be
beneficial to the company manager interested in receiving knowledge in this area. These
recommendations are listed below:
! Success factor. Managers must understand the importance of customer relationship
in their operations and view CRM as a vital tool to become successful. The first step
is to understand that the CRM framework is something that involves the whole
company's organization and business, and not just the marketing and sales function.
! Continues learning processes. Many companies rely on old business frameworks
and claim that they are customer focused and use clichés like "with the customers
best in our mind" as a way to state their position. In becoming truly customer
focused they need to create a process that enables the organization, as a whole to
continuously learn from its customer.
! Customer information. To be able retain a true picture of the customers need and
wants; it is necessary to have an information system that register all interaction.
More over, this system must enable the transfer of customer information across
distribution channels and country borders.
! Customization. The integration of production and logistic functions into the
marketing process is almost a prerequisite for a customer centric handling of
customer interactions and customization in a company.
! Organizational change. Independently of how far a company has got in there strive
towards a customer centric handling of customer relations; it is necessary to create
awareness for organizational change. This is due to that the company sooner or later
will face the need for an reorganization as a response to the gained customer
knowledge and to the new business opportunities that it enables.
7.3 Recommendations for Theory
In the analysis chapter we were able to see how well the literature used agrees with the
findings in our research. The literature corresponds rather well with what we have been
able to find out, but we do have findings that constitute our implications for theory. We
have deductively formulated our purpose and research questions, based on previous
studies by numerous authors. We have in this thesis described, explored and begun to
explain how Swedish companies use CRM. We have studied the objectives, the
processes and how the organization is affected by CRM in five different case studies.
This thesis contributes to theory in that it provides an empirical investigation as to how
established theory regarding customer relationship management relates with how CRM
is used in Swedish companies. Since there are very limited amount of studies focusing
on how CRM is used in not only Swedish companies, this thesis provides a foundation
from which further studies may be done.
- 105 -
7.4 Recommendations for Further Research
While conducting this research, some interesting subjects for further research have
turned up. Firstly, it would be possible to concentrate on one variable within the CRM
processes, for example the customer interaction and investigating it in depth during the
customer communication in a variety of interaction channels. By investigating a single
variable in depth one might be able to obtain a more detailed picture of CRM affect the
interaction processes.
Another topic for further research is to make an investigation based on quantitative data.
To do a quantitative research would make it easy to get a clear picture of what direction
the CRM framework is striving towards in a larger setting. Another data collection
method that could be used is participant observation. To participate in a company's
interaction process for a certain time period could provide the investigator with an in-
depth understanding of how customer relationships are processes are managed in
practice.
Finally, it would be interesting to study the outcome of CRM in a customer relationship
in terms of satisfaction, trust, value, and loyalty. In writing this thesis, a number of
different issues have come up, which we feel would be interesting to see future research
done upon. Hence, we will now present a list of suggestions for future research that we
think are suitable topic for a future thesis.
! To perform the same study on small- and mid-sized companies in different line of
industries.
! To perform a study on the organizations inclination to change due to a more
customer focused approach.
! To perform a study focusing on how the organization structure are transforming to
become more customer centric.
- 106 -
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Interviews
Andersson, Lennart B. CRM Project Manager, FöreningsSparbanken 11th
of December
2001.
Rudén, Jan. Vice President Nordic Sales, SKF 13th
of December 2001.
Pusic, Göran. CRM Project Manager, SEB 13th
of December 2001.
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of December 2001.
Intervju guide
Allmänt
Företags namn:
Anställda:
Respondentens namn:
Respondentens position:
Mlsättningar med CRM
1. Vad/vilka är era mlsättningar med CRM?
2. Varför är dessa mlsättningar viktiga för ert företag?
3. Har ni som mlsättning i CRM arbetet:
! Att öka försäljnings intäkter, d mer tid kan spenderas hos kunderna, d mindre tid
används för informationsinhämtning om kunder?
! Att öka antal lyckade affärer, d företaget kan dra sig ur ofördelaktiga eller dliga
affärer tidigare i försäljningsprocessen?
! Att öka marginaler, d bättre kunskap om kunden ger ett mervärde samtidigt som
rabatter ej erfordras?
! Att öka kund tillfredställelsen eftersom kunderna finner att erbjudandena är i linje
med deras behov?
! Att minska försäljnings- och marknadsföringskostnader eftersom kunskapen om
kund segmenten är förbättrad. Därigenom kan företaget använda sina resurser
effektivare d ingen tgärd ar slöseri med tid eller pengar?
! Att bygga personliga relationer med kunden, vilken i sin tur skall ge feedback?
! Att n skalekonomiska fördelar genom mass customization?
! Att genom after-sale service/support skapa lojala kunder?
! Att identifiera de väsentliga kundvärdena för ett speciellt segment?
! Att först den relativa vikten av dessa kundvärden i varje kund segment?
! Att bestämma om leverans av dessa kundvärden kommer att ge en positiv effekt?
! Att kommunicera efter hur kunden vill ha informationen, och leverera rätt värde till
varje kund?
! Att mäta resultat och avkastning p investeringar?
! Att introducera oföränderliga, kopierbara processer och tillvägagngssätt.
! Att använda existerande kundrelationer till att öka intäkterna.
! Använda integrerad information för att ge utmärkt service.
Uppskattning av mlsättningar med CRM
Mlsättning Ingen liten medium stor
Öka försäljningsintäkter
Öka antal lyckade affärer
Öka marginaler
Öka kund tillfredställelsen
Minska försäljnings- och
marknadsföringskostnader
Bygga personliga relationer med kunden
N skalekonomi via mass customization
Skapa lojala kunder via after-sale service/support
Identifiera de väsentliga kundvärdena för ett
speciellt segment.
Först den relativa vikten av dessa kundvärden i
varje kund segment
Bestämma om leverans av kundvärden kommer att
ge en positiv effekt.
Kommunicera och leverera rätt värde till och p ett
sätt kunden vill ha nformationen p.
Mäta resultat och avkastning p investeringar
Introducera oföränderliga, kopierbara processer
och tillvägagngssätt.
Använda existerande kundrelationer till att öka
intäkterna.
Använda integrerad information för att ge utmärkt
service
4. Har ni ngra andra mlsättningar med CRM?
CRM processer
1. Är ert företag transaktionsorienterat eller relationsorienterat, varför?
2. Vad är de viktigaste aktiviteterna i er förvaltning av kundbasen?
3. Är kunden en aktiv eller passiv part i försäljningen?
4. Hur är produktion och logistik funktionerna inblandade i marknadsfunktionen?
5. Hur tar företaget tillvara p information frn kunden?
6. Hur har företaget tillgng till kundinformation genererad i distributionskanalerna?
7. Hur ser er kundanalysprocess ut?
- (steg ­ typ av information - syfte)
8. Vad fokuserar er marknadsplanering mot?
9. Hur planeras interaktion med kunden?
- (kanal ­ kundanpassning - etc.)
10. Hur används information som erhllits frn interaktionen med kunden?
CRM organisation
1. Hur har CRM pverkat er organisationsstruktur?
- (arbetsuppdelning, avdelningar, form, maktfördelning)
2. Hur har CRM pverkat er informations och beslutsprocess?
- (planering och verksamhetsstyrning, budgetering, uppföljning)
3. Hur har CRM pverkat era belöningssystem?
- (kompensation/befordran)
4. Hur har CRM pverkat HRM?
- (rekrytering och urval, omplaceringar, utbildning)
5. Hur har CRM pverkat förhllandet mellan organisationsenheter?
- (ömsesidigt beroende, skiljaktigheter, motsättningar)
6. Har ert företag vidtagit tgärder som gr mot det "papperslösa kontoret"?
7. Har ert företag vid nyrekryteringar ansträngt sig för att anställa kundorienterade
personer?
8. Har ert företag genomfört ngra organisations förändringar vid eller efter införandet
av CRM?
9. Har ert företag tränat eller utbildad personalen p CRM?
- (vilka anställda och hur)
10. Har företaget en ledningsstil som ger de anställda en möjlighet till självstyre i sitt
ansvarsomrde?
11. Har CRM pverkat roll fördelning vid er marknadsföringsorganisation?
12. Hur ser roll fördelningen ut?
- vem koordinerar marknadsförings processen ?
- vem identifierar den rätta kunden och affärsmöjligheter ?
- vem skapar de rätta erbjudandena gentemot kunden ?
- vem bestämmer när erbjudandet skall presenteras ?
- vem hanterar interaktionen med kunden ?
Interview guide
General information
Company name:
Employees:
Name of the respondent:
The respondent's position:
CRM Objectives
1. What is /are your objective/s with CRM?
2. Why are these objectives the most important for your company?
3. In the process of CRM, is one of your objectives?
! To increase sales revenues, resulting from spending more time with customers,
which results from spending less time collecting information about the customer.
! To increase win rates, since the company withdraws from unlikely or bad deals
earlier in the sales process.
! To increase margins, resulting from knowing your customers better, providing a
value-sell, and discounting price-less.
! To improve customer satisfaction rates due to that customers will find that the offer
is more in line with their specific needs.
! To decrease general sales and marketing administrative costs due to that the
company has a good knowledge about its target segment customers. Thereby the
company is using its resources better when no effort is a waste of money or time.
! To build personal relationships with the customer, which will provide the company
with feed back.
! To reach economies of scale by mass customization.
! To assure customer loyalty by providing after-sale service/support.
! To identify those customer values that are pertinent to a particular segment.
! To understand the relative importance of those values to each customer segment.
! To determine if delivery of those values will affect in a positive manner.
! To communicate and deliver the appropriate values to each customer in ways the
customer wants to receive the information.
! To measure results and proving return on investments.
! To introducing consistent, replicable processes and procedures.
! To use existing customer relationship to grow revenue
! To use integrated information for excellent service
Valuation of objectives with CRM
Objectives None Minor Medium Major
Increase sales revenues
Increase win rates
Increase margins
Improve customer satisfaction
Decrease general sales and marketing
administrative costs
Build personal relationships
Reach economies of scale by mass customization
Assure customer loyalty by providing after-sale
service/support.
Identifying those customer values that are
pertinent to a particular segment.
Understanding the relative importance of
customer values to each customer segment.
Determining if delivery of customer values will
affect in a positive manner.
Communicating and delivering the appropriate
values to each customer in ways the customer
wants to receive the information.
Measuring results and proving return on
investments
Introducing consistent, replicable processes and
procedures.
Use existing customer relationship to grow
revenue.
Use integrated information for excellent service.
4. Do you have any other objectives with CRM?
CRM processes
1. Is your Company transaction or relationship oriented, why?
2. What is the most important activity in your custodian of the customer base?
3. Is the customer an active or passive part in the sales process?
4. How are the production and logistics functions involved in the marketing process?
5. How does the company take use of the information received from the customer?
6. Do the company have access to customer information generated in distribution
channels?
7. How is your customer analysis process structured?
- (phases ­ types of information - purpose)
8. What are the focuses with your market planning?
9. How is the customer interaction managed?
- (channel ­ customization - etc.)
10. How are the customer information received from the interaction used?
CRM organization
1. How has CRM affected your organizational structure?
- (Division of labor, departmentalization, shape, distribution of power)
2. How has CRM affected your information and decision process?
- (Planning and control, budgeting, performance measuring)
3. How has CRM affected your reward systems?
- (Compensation/promotions)
4. How has CRM affected HRM?
- (Recruitment and selection, transfer promotions, training and
development)
5. How has CRM affected the relationship between organizational units?
- (Interdependency, diversity, uncertainty)
6. Has your company taking any action towards the creation of the paperless office?
7. Has your company focused on recruiting customer-focused employees?
8. Has your company made any organizational changes due to the implementation of
CRM?
9. Has your company trained or educated the personnel on CRM?
- (Whom an how)
10. Has the company a management style that enables empowerment?
11. Has CRM had any impact the roles in the marketing organization?
12. How do the roles in the marketing organization look likes?
- Who coordinates the business process?
- Who identifies the right customer and business opportunity?
- Who creates the right offer towards the customer?
- Who decides when the offer shall be presented for the customer?
- Who manages the customer interaction?