Technology and disruption: How the new customer relationship influences the corporate strategy

Abstract

It is increasingly the case that major changes in the technological environment and customer digital behavior have a signifi cant impact on the way companies manage their customer relationship. Here, the related perspectives of value management are concerned: (a) the design of products and services including the way of interaction with the customer that generate a high customer benefi t and (b) the focus of companies on customers with high profi t margin and sales potential. The fl ow of information is also in two directions. Firstly, one information fl ow refers to data that originates from the customer. Through digitized customer relationship processes, companies receive more detailed and real-time data about products and services than was the case earlier-this is a noticeably new situation for industries that formerly had limited contact with the end consumer. Secondly, there is an information fl ow triggered by the company as it is now easier for enterprises to actively communicate with customers increasingly in real time and individually. This direct marketing has been revolutionized in a digital and networked world, making a long discussed 1:1 marketing approach feasible. This is an opportunity and a challenge for the corporate strategy at the same time. The ability to extract information from big data and evolve smart data becomes a competitive factor: on the one hand, tailored products and services can be offered to the customer, while on the other hand, the controlling and steering of customer value management in real time is possible. In the fi rst step, the paper examines the challenges for CRM in a world of disruptive technology. In the second step, it shows how digital transformation changes the fl ow of information from customer to company and vice versa by looking at different industries. In the third step, the infl uence on corporate strategy is examined, and a broader defi nition of CRM is suggested regarding both aspects, the perspective of the company and the perspective (and perception) of the customer.