Internet-Based Customer Portfolio Building
Proceedings of the 10th International Conference Marketing Trends, Paris, January 20-22, 2011
22 Pages Posted: 8 Jul 2012
Date Written: November 25, 2010
This paper presents a conceptual model of Internet-based customer portfolio building. The proposed model refers to the concept of value exchange between a company and a customer, as well as to the concept of delivering values to customers. The model is made up of five stages: defining, creating, communicating and delivering values, as well as generating values for a company.
The first stage in the process of customer portfolio building is defining values, when the value proposition and target group are selected. The essence of the next stage, which is creating value, is to provide the company with assets, competences and other managerial solutions necessary for the offering the chosen value proposition. Communicating values is the third stage in the process of Internet-based customer portfolio building. It consists of attracting customers to the company and trust building. Delivering values is a continuous stage including customer segmentation, value exchange, involvement and loyalty building. Customer segmentation aims at distinguishing groups of customers who share common or similar characteristics and who react to the company’s actions much the same way. The value exchange is a transactional part of the relationship during which customers receive values from the company and in return deliver other values to it. Involvement building consists of increasing the scope of values which are the subject of exchange. Loyalty building is understood as increasing customer willingness to continue the relationship with the company. The final stage in the proposed model is generating value for the company, which underlines the need to create values for shareholders based on marketing activities.
Keywords: Customer portfolio, customer relationship management, CRM, e-CRM, customer value management, customer relationships, online, Internet, e-commerce, e-business, value proposition, customer value, customer loyalty, customer trust, value exchange
JEL Classification: M31, M30, M39
Suggested Citation: Suggested Citation