Customer Engagement in the Greek Retail Banking Sector Essay

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Summary

The article reviews the customer relationship management (CRM) evolution from product-centric to customer-based business culture. Notably, the advent of digital media has provided consumers with new communication possibilities. Specifically, websites empower consumers to engage in behaviors that others can consume now or in the future irrespective of the location. Notably, digital media breakthrough has enabled consumers to gather, exchange, and share information regarding products, services, and personal experiences on particular brands. These abilities have converted consumers to “Prosumers”; that is, they are producers and consumers of brand information.

CRM is based on the desire to establish a business environment that embraces efficient management of customer relationships. Mainly, it is founded on relationship marketing, whose objective is to enhance long-term profitability through managing customer relationships. The advent of information technology tools such as data warehousing and data mining techniques have led to the establishment and development of a modern CRM (Social CRM).

Although information technology tools are useful in the management of customer relationships, they are insufficient for building mutual trust between buyers and sellers. Thus, Social CRM with philosophy and business strategy characterized by business rules, process, social characteristics, and technology platforms is needed to provide enterprises and customers with mutual benefits in a trusted and transparent business environment. In Social CRM, companies and clients should engage in talking, listening and learning from one another.

The empirical findings of Giannakis-Bompolis and Boutsouki (2014) study show the presence of a strong relationship between traditional CRM and Social CRM, where the primary objective is customer engagement. It is prudent to engage customers in enterprise procedures through traditional CRM. Again, the findings show the need for banks to satisfy their customers, gain their trust, and make them feel and act with loyalty. On Social CRM, the authors identify its application in e-commerce and m-CRM. Notably, they recommend enterprises to take the advantage of mobile devices such as smartphones, blackberries, and tablets to seize business opportunities and avoid losing customers due to inefficient services.

Article Relevance to Marketing

Giannakis-Bompolis and Boutsouki (2014) article links traditional CRM with social media through customer engagement. The authors recommend banks to engage in active social media (which is an essential tool for marketing) because it is a significant determinant of customers’ willingness to participate in new relationships with enterprises.

Currently, companies use social media as a primary tool in relationship marketing. Notably, Social CRM provides customers with access to relevant information relating to enterprise brands. Besides, it enables customers to participate in relationship marketing with enterprises through co-creation of products, knowledge, offers, and value. In this regard, the article’s discussion of Social CRM is relevant to marketing as many enterprises pursue CRM as a primary source of customers’ satisfaction and loyalty.

My Business Opinion on the Significance of the Article’s Subject on Today’s Business Environment

Mainly, I believe that the subject of Giannakis-Bompolis and Boutsouki (2014) article is significant in the current business environment. The article identifies the application of Social CRM in e-commerce and m-CRM, which are currently utilized by many enterprises to market their products and promote brands. Notably, authors recommend enterprises to use portable digital devices such as smartphones, blackberries, and tablets as their primary tools for engagement with their customers. Notably, numerous business entities use mobile devices to seize business opportunities and undertake business transactions through software applications.

Reference

Giannakis-Bompolis, C., & Boutsouki, C. (2014). Customer relationship management in the era of social web and social customer: An investigation of customer engagement in the Greek retail banking sector. Procedia – Social and Behavioral Sciences, 148, 67–78.

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IvyPanda. (2020, July 9). Customer Engagement in the Greek Retail Banking Sector. https://ivypanda.com/essays/customer-engagement-in-the-greek-retail-banking-sector/

Work Cited

"Customer Engagement in the Greek Retail Banking Sector." IvyPanda, 9 July 2020, ivypanda.com/essays/customer-engagement-in-the-greek-retail-banking-sector/.

References

IvyPanda. (2020) 'Customer Engagement in the Greek Retail Banking Sector'. 9 July.

References

IvyPanda. 2020. "Customer Engagement in the Greek Retail Banking Sector." July 9, 2020. https://ivypanda.com/essays/customer-engagement-in-the-greek-retail-banking-sector/.

1. IvyPanda. "Customer Engagement in the Greek Retail Banking Sector." July 9, 2020. https://ivypanda.com/essays/customer-engagement-in-the-greek-retail-banking-sector/.


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IvyPanda. "Customer Engagement in the Greek Retail Banking Sector." July 9, 2020. https://ivypanda.com/essays/customer-engagement-in-the-greek-retail-banking-sector/.

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