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Architecture for Customer Relationship Management Approaches in Financial

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 Proceedings of the 38th Hawaii International Conference on System Sciences - 2005

Architecture for Customer Relationship Management Approaches in

Financial Services

Malte Geib, Annette Reichold, Lutz Kolbe, Walter Brenner

Institute of Information Management, University of St. Gallen
Malte.Geib|Annette.Reichold|Lutz.Kolbe|[email protected]

Abstract with varying success, conducted CRM implementation

projects. Only a few companies have particularly
The majority of financial services companies in realized the implementation of a CRM strategy aligned
Germany and Switzerland have, with varying with company profitability and employing integrated
objectives and success, conducted customer information systems for both performance
relationship management (CRM) implementation measurement as well as for the control of marketing,
projects. sales, and service processes [22].
In this paper we present a framework for the The objectives of this contribution are
analysis of CRM approaches in financial services 1. the development of a CRM reference architecture
companies. Building on previous research and using on the process and systems levels for the
comprehensive literature research, we develop a CRM description and classification of CRM approaches
reference architecture that focuses on the process and in financial services companies, and
system level for the description and classification of 2. the derivation of the types of CRM approaches in
CRM approaches in companies. Moreover, we analyze the financial services industry and their description
three CRM case studies in Swiss and German financial by means of the CRM architecture.
services companies and derive different types of CRM The developed CRM architecture and defined CRM
approaches in the financial services industry: types can be used in the analysis of CRM in companies
Customer Satisfaction Management, Customer Contact to determine the actual state and to define a target state.
Management, and Customer Profitability Management. In the next section we describe the foundations and
We describe each type in accordance with the CRM strategic objectives of CRM. We thereafter develop the
architecture and a case example. CRM architecture for the process and system levels.
Thus, we provide an holistic picture of CRM over the
Keywords: Customer Relationship Management, levels strategy, processes and information systems [11].
Knowledge Management, Performance Management. In the third section we describe our case study sites, as
well as the results of our analysis in the form of three
1. Introduction CRM types. Section four concludes with a summary, a
critical reflection of the results, and further research
Increasing competition and decreasing customer opportunities.
loyalty have led to the emergence of Customer
Relationship Management (CRM), a concept that 2. Customer Relationship Management in
focuses on the nurturing of customer relationships. To the financial services industry
build long lasting, profitable relationships with
customers, CRM requires the management of The following paragraphs describe CRM on the levels
‘customer-related knowledge’ which entails knowledge of strategy, processes and information systems.
from, about and for customers [2][5].
Over the past few years CRM has played an 2.1. Strategic objectives
increasingly important role in the financial services
industry. During this time the majority of financial Decreasing customer loyalty in different industries has
services companies in Germany and Switzerland have, led to the emergence of concepts that focus on the

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 Proceedings of the 38th Hawaii International Conference on System Sciences - 2005

nurturing of customer relationships [13][14], in processes that involve customers. These customer-
particular Customer Relationship Management (CRM). oriented CRM processes are mostly semi-structured,
Following Shaw and Reed [20, p. 4], we define CRM i.e., they involve activities that cannot be described
as an interactive approach that achieves an optimum formally and therefore cannot be automated
balance between corporate investments and the completely. Their performance is predominantly
satisfaction of customer needs in order to generate influenced by the underlying supply of knowledge on
maximum profits. This entails: products, markets, and customers [3][4][17]. CRM
• acquiring and continuously updating knowledge on processes can therefore be considered as knowledge-
customer needs, motivations, and behavior over intensive processes. Managing the collection, storage
the lifetime of the relationship. and distribution of relevant knowledge requires the use
• applying customer knowledge to continuously of Knowledge Management (KM) in CRM processes.
improve performance through a process of „Knowledge Management is the process of critically
learning from successes and failures. managing knowledge to meet existing needs, to identify
• integrating marketing, sales, and service activities and exploit existing and acquired knowledge assets and
to achieve a common goal. to develop new opportunities.“ [16] The following
• the implementation of appropriate systems to section describes CRM and KM processes and the
support customer knowledge acquisition, sharing, closed knowledge loop that should be achieved in
and the measurement of CRM effectiveness. CRM to exploit its potential.
To integrate marketing, sales, and service activities,
CRM requires the strong integration of business

Figure 1. Customer relationship management architecture (process level).

2.2. Processes KM researchers and in two two-day workshops with six

financial services companies.
The architecture presented is the further The process level (Figure 1) incorporates business
development of an earlier architecture developed in a processes that are regarded as relevant to CRM in most
joint research project with several German and Swiss of the literature analyzed. The system level (section
financial services companies [5][6]. The architecture is 2.3.) depicts information systems relevant to CRM and
based on literature research and was discussed and their relationships to one another.
validated in four team workshops of eight CRM and An important aspect of CRM is its orientation to
customer processes (or Customer Resource Lifecycles,

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 Proceedings of the 38th Hawaii International Conference on System Sciences - 2005

CRLC) [cf. 9, p. 1197]. A customer process is the The objective of campaign management is to generate
sequence of activities that a customer has to perform to valuable opportunities or ‘leads’, which can be further
satisfy a need or to solve a specific problem, e.g., qualified by lead management and then used by sales
building a house. A customer process therefore management. Campaign management addresses the
determines the required products and services that a need articulation phase of the customer process.
service provider has to offer to cover a customer The objectives of sales management are to
process entirely [12, p. 25]. Because most service understand the needs of a current or prospective (but
providers cannot cover an entire customer process, or known) customer as completely as possible, to consult
do not want to cover it due to a focus on certain core the customer on possible alternatives with which to
competencies, collaboration with other service satisfy his needs, and finally to submit an offer, and
providers that offer complementary products and close a deal. Therefore sales management covers the
services is necessary. customer process phases of need articulation,
We distinguish among three categories of CRM evaluation, and buying.
processes: Service and complaint management cover the
• CRM delivery processes: Processes with direct customer process phases of using and expiry / renewal
customer contact that are designed to cover part of of a service contract complementarily. Service
the customer process (campaign management, management is the planning, realization and control of
sales management, service management, complaint measures for the provision of services. Examples
management). include contract management and information services
• CRM support processes: Processes with direct in the after-sales phase.
customer contact that are not designed to cover Customers’ articulated dissatisfaction is received,
part of the customer process, but to fulfill processed, and communicated in the enterprise within
supporting functions within the CRM context the scope of complaint management [21]. The
(market research, loyalty management). objectives are to improve customer satisfaction in the
• CRM analysis processes: Processes that short-run by directly addressing problems that led to
consolidate and analyze customer knowledge that complaints, and to support a continuous improvement
has been collected in other CRM processes. The process (in the form of feedback management) to avoid
analysis results are passed on to the CRM delivery complaints in the long-run. Complaint management
and support processes as well as to the service primarily addresses the using phase of the customer
innovation and service production processes to process.
improve their effectiveness (customer scoring and
lead management, customer profiling and CRM support processes
segmentation, feedback and knowledge
management). Market research is the systematic design,
Next, we provide a short overview of each CRM collection, analysis, and reporting of data and findings
process. relevant to a specific marketing situation facing the
company [10, p. 129].
CRM delivery processes Loyalty management is the planning, realization,
control, and monitoring of measures to optimize the
In contrast with transaction marketing, relationship duration and intensity of relationships with customers.
marketing is based on interactive, individualized Exemplary measures are loyalty programs such as
contacts [8, p. 11]. Campaign management is the core airlines’ frequent flyer programs, but also churn
marketing process that implements relationship management to identify customers who are in danger of
marketing’s ideas. We define it as the planning, migrating to competitors at an early stage.
realization, control, and monitoring of marketing
activities aimed at known recipients, who are either CRM analysis processes
current or prospective customers. Marketing campaigns
are individualized (one-to-one marketing) [15] or Lead management is the consolidation,
segment-specific, usually use different communication qualification, and prioritization of contacts with
channels, and offer at least one communication channel prospective customers. Contacts may be received from
for feedback from the recipients to allow interaction. campaign management or other sources, e.g., the

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 Proceedings of the 38th Hawaii International Conference on System Sciences - 2005

service management process. The objective is to of variants in a company’s product and service
provide sales staff with a qualified and prioritized list portfolio.
of presumably valuable prospective customers to allow Feedback management is responsible for the
them to be precisely and effectively addressed within consolidation and analysis of knowledge from
the sales management process. In contrast to lead customers, which is collected in the CRM delivery
management, the objective of customer scoring is to processes, particularly in the complaint management
prepare a list of current customers who may be process. The results feed a continuous improvement
interested in a specific product or service. Thereby, process of a company’s products, services and
customer scoring takes advantage of the cross-selling processes.
potentials of current customers and offers a means with Multi-channel management is a cross-functional
which to address customers more precisely to decrease activity and is responsible for the synchronization of
contact costs and increase customer satisfaction. the CRM delivery and support processes. It is the
Customer profiling is the analysis of current coordinated development, design and control of
knowledge about customers in order to classify and product and knowledge flows to and from customers
characterize each customer, for example with regard to over different media and communication channels [7,
his value for the company, loyalty, and preferences p. 19].
regarding products and communication channels. For effective CRM, the implementation of a closed
Campaign management, sales management, service knowledge loop is essential. Knowledge about
management, complaint management, and loyalty customers that is collected in the CRM delivery and
management processes use the results of customer support processes has to be passed on to the analysis
profiling to address customers in a more personalized processes. It is analyzed there and the results are
way. Conversely, the objective of segmentation is the channeled back to the delivery and support processes in
development of homogenous customer segments that the form of recommendations for action. To increase
have different product and service needs [10, p. 9]. effectiveness, only knowledge that is needed to make
Customer segments are the basis for the development recommendations should be collected and analyzed.

Figure 2. Customer relationship management architecture (system level).

Performance management is the management the customers and activities within the scope of the
process for all CRM processes. It enables the CRM processes.
integrated control and monitoring of, as well as the After the description of CRM processes, we now
resource allocation to the CRM processes as turn to the necessary information systems to support
described by Shaw and Reed [20]. The foundation of these processes.
performance management is an activity-based costing
(ABC) to determine the profit contribution made by

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2.3. Systems • Collaboration: This category comprises systems

that support collaboration among employees,
On the system level we differentiate between three e.g., systems for communication, workflow
categories of information systems that are relevant to management, and virtual communities as well as
CRM (Figure 2): CRM systems, knowledge groupware systems.
management (KM) systems, and enterprise resource • Composition: This category comprises systems
planning (ERP) and transaction systems. for the structuring, structured presentation, and
According to the Metagroup, CRM systems can be location of knowledge, e.g., enterprise
classified into the following three sub-categories [19]: information retrieval systems and portals.
• Operational CRM systems improve the ERP systems as well as transaction systems are highly
efficiency of CRM delivery and support relevant to CRM, because they process and store
processes. They comprise solutions for structured information on customers, e.g., customer
marketing, sales and service automation, e.g., and contract master data, as well as business
campaign management systems and systems for transactions. On the one hand, this data is needed in
customer interaction centers. the CRM analysis processes to obtain a complete
• Analytical CRM systems store and evaluate picture of a customer. On the other hand, the CRM
knowledge about customers for a better delivery and support processes need access to all
understanding of each customer and his behavior. company information concerning a specific customer
They therefore support the CRM analysis to address him individually and to better address his
processes. Examples are data warehousing, needs.
online analytical processing (OLAP) and data
mining systems. 3. Research Methodology
• Collaborative CRM systems manage and
synchronize customer interaction points and Our approach is based on a case study method by
communication channels (e.g. telephone, email, Senger and Österle, which is an adaptation of Yin’s
and web). methodology [23] developed to analyze business
CRM systems essentially process well-structured transformation projects [18].
information, e.g., customer contact data and master
data. In contrast, KM systems support the collection, 3.1. Case sites
sharing, and use of less-structured information such
as documents (explicit knowledge) and employees’ The research data was collected from June to
implicit knowledge [1]. This knowledge is especially October 2003 in a study of three Swiss and German
needed in the CRM delivery processes to satisfy financial services companies (Table 1). Site selection
customer needs. For example, the sales management was based on a willingness to cooperate [23] and on
needs detailed knowledge of the products available in the role and use of customer knowledge in CRM. To
order to offer customers effective consultation in ensure comparability, we focused on CRM in the
respect of their needs. We distinguish between four retail banking segment of the respective companies.
categories of KM systems [6, p. 404]:
• Content: This category comprises systems for the 3.2. Data collection
management, sharing, and use of semi-structured,
digital content, in particular document In all three cases, data was collected through semi-
management systems (DMS) and content structured interviews with key informants and a
management systems (CMS). document analysis of annual reports, organizational
• Competence: This category comprises systems charts, and system charts. Senger and Österle’s case
for the proactive management and location of study method [18] provided the structure for the
implicit knowledge in employees’ minds. To central semi-structured interviews. The interview
support the utilization and development of questions were based on the levels strategy, process
implicit knowledge, employees’ competencies and system and may be summarized as follows:
can be determined and made available in skill • Strategy: What are the strategic objectives and
management systems and expert directories. concepts employed in the CRM initiatives?

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 Proceedings of the 38th Hawaii International Conference on System Sciences - 2005

• Process: What are the relevant CRM processes • System: Which information systems are used
and implementation measures? to support the CRM processes implemented?
1
Table 1. Overview of case sites.

Investment Bank2 Regional Bank2 Universal Bank2

3
Description German investment fund A regional Swiss universal bank A globally-active Swiss financial
management company services company
Business segments Investment funds, asset Corporate/ retail/ private banking Corporate/ retail/ private banking,
management insurance
Total assets € 100 billion € 9 billion € 644 billion
Employees ca. 2,000 ca. 750 ca. 75,000
Customers ca. 4 million ca. 230,000 ca. 3 million
Type of CRM approach Customer Satisfaction Customer Contact Management Customer Profitability Management
Management

3.3. Data analysis use of customer knowledge: CRM as Customer

Satisfaction Management, CRM as Customer Contact
We used a two-stage strategy for data analysis [23]. Management, and CRM as Customer Profitability
During the first stage, the within-case analysis of the Management. We describe each type and present case
data from each case study site was undertaken. The examples in line with the CRM architecture.
objective was to build an explanation of the case, Complete case descriptions are beyond the scope of
using a cycle of deduction and induction. The validity this paper.
of the data was ensured through multiple sources of
evidence, reviews of case interpretations by
interviewees and a chain of evidence provided by the 4.1. CRM as Customer Satisfaction
case data. Management
The second stage involved the cross-case analysis of
the data, thus locating and examining similarities and CRM as Customer Satisfaction Management aims
differences across the three cases. In the process, the at high customer satisfaction by offering customers a
companies’ different focus, collection and use of high quality of service and proximity. These
customer knowledge was taken into account. The objectives are often supported by knowledge
objective was to identify similarities and differences management systems, in order to improve service
on strategy, process and system levels that resulted quality and accelerate processes and problem
from a different role and importance of customer solutions. Detailed knowledge on customers is not,
knowledge in CRM and vice versa. however, necessary, because Customer Satisfaction
Management does not distinguish between individual
4. Types of CRM approaches in the customers. Rather, the measures implemented are
Financial Services Industry applied to all customers equally.
For example, the application of a customer
typology within the scope of campaign management
The CRM reference architecture described in the facilitates the precise addressing of customer needs.
previous section provides a means of describing the Within sales management, a counseling methodology
different CRM implementations on the process and can guarantee the systematic discovery of customer
system levels in the three cases. As a result of our needs and the offering of suitable products to improve
case study research, we identified three distinct types the counseling quality. Furthermore, within service
of CRM approaches that differ on the strategy, management, service level agreements (SLA) can be
process, and system levels and in the importance and used to specify maximum response times. Another

1
Approved cases are available at www.iwi.unisg.ch.
2
The names of these companies were changed due to non-disclosure agreements.
3
A universal bank is a bank that offers a comprehensive range of banking products.

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example is the offering of accommodating solutions customers as well as the customer consultants of the
to dissatisfied customers in the complaint distribution partners. Regular opinion polls measure
management process. This requires employees to be customer satisfaction.
sufficiently empowered to freely decide on The objective of the CRM implementation at
concessions during a conversation with a customer. Investment Bank was the improvement of customer
Knowledge management systems can be a means of satisfaction. Investment Bank therefore only
systematic support for Customer Satisfaction differentiates between customers on the basis of the
Management, because they enable the swifter customer typology. Since it favors long-term
processing of customer inquiries. customer satisfaction, Investment Bank forgoes
Customer Satisfaction Management therefore measures for short-term sales increase.
primarily covers the CRM delivery processes of the
CRM architecture. The implemented measures are 4.2. CRM as Customer Contact Management
therefore mostly of an organizational nature. KM
systems are primarily used for process support on the CRM as Customer Contact Management aims at
system level. reducing costs by improved process efficiency and
Investment bank has an exemplary the use of media-based communication channels.
implementation of CRM as Customer Satisfaction Integrated information and communication
Management. The objectives of the CRM at technology is used to maintain or even increase
Investment Bank are to exploit the customer potential service quality by realizing shorter cycle times.
of its distribution partners and to increase brand Moreover, Customer Contact Management aims to
recognition. Since the bank’s products are mainly provide customers with a consistent interface across
distributed to partner companies, it has little direct all communication channels.
contact with end customers. To increase brand A prerequisite for realizing these goals is the
recognition and customer satisfaction with the collection and provision of relevant customer data at
services offered, Investment Bank uses a self- all customer contact points. Besides the customer
developed customer typology, which helps to master data, employees with customer contact also
determine a customer’s investor type. The typology is record the contact history, topics discussed, customer
used within Investment Bank’s campaign requirements, and “soft” customer data such as
management process and within the distribution hobbies, interests, and preferences. Transparency
partners’ sales management processes. Within the between the enterprise and customers is thus
campaign management processing, the addressing of established across all interactions. Standardized input
customers is adapted according to each investor type. formats and categories guarantee the usability of data
Moreover, part of the customer magazine is designed for automatic data analysis. However, data analysis
to address the different investor types. To improve the plays a secondary role. The relevant processes of
distribution partners’ sales management processes, Customer Contact Management are campaign
Investment Bank can provide detailed descriptions of management, sales management, service
proposed counseling strategies and the recommended management, and complaint management. In these
behavior when counseling each investor type. processes, customer data is collected and also
Customer consultants can determine the investor type utilized. Operational CRM systems support the
at the start of a counseling interview by using seven collection of customer data and the management of
simple and impersonal questions like “How important customer contacts. Collaborative CRM systems
is flexibility of investments for you?” The objective support the integration and synchronization of
of the typology is customer counseling, oriented different communication channels within the scope of
toward customer needs, in order to achieve long-term multi-channel management. Besides achieving
customer satisfaction with the purchased products. shorter cycle times, the use of media-based
A call center handles the service management communication channels also allows cost reductions.
process of Investment Bank with SLAs guaranteeing Regional Bank has an exemplary implementation
a high quality of service. Furthermore, a content of CRM as Customer Contact Management. The
management system enables a competent and quick objectives of CRM at Regional Bank were the
response to customer inquiries regarding complex improvement of the proximity to customers and the
bank products. The call center is used by end- realization of cost-cutting opportunities through

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information systems. Within the scope of campaign target product offers to individual customers, can
management, Regional Bank carries out intermittent support this task. In a first step, a company has to
database queries to support the planning of product- implement loyalty management, customer profiling,
oriented campaigns. These queries result in customer and customer scoring processes. Customer profiling
lists that are forwarded to the responsible customer develops a profile for each customer, which forms the
consultant in a branch office, or to the contact center foundation of long-term strategic customer planning.
for processing. Because the branch offices and Customer scoring, moreover, discovers individual
contact center’s CRM systems are integrated, the cross- and up-selling opportunities. The results are
contact center can launch product campaigns and transferred to the campaign and sales management
transfer the leads generated to the calendars of branch process.
office consultants. The consultants counsel the This CRM approach employs methods for the
customers within the sales management process. By monetary assessment of customer relationships to
using a contact center, activity-based costs are establish equilibrium between investments in
reduced and branch office consultants have more time customer relationships and realized profits. Besides
to counsel customers. Therefore, multi-channel customer assessment, precise definition and control of
management and integrated information systems not CRM measures in the context of loyalty management
only reduce costs, but also improve proximity to are necessary. Within performance management, the
customers. These goals are additionally pursued by profitability of CRM measures and the development
the contact center’s central handling of service and of customer segments are monitored. A data
complaint management processes. Moreover, warehouse and other analytic CRM systems make up
operational CRM systems support customer and the core of the information systems infrastructure. As
contact management and thus decrease the time that in Customer Contact Management, operational and
consultants spend on administrative tasks. collaborative CRM systems enable employees’
Regional Bank has built its infrastructure for efficient management of customer data,
Customer Contact Management step-by-step over a communication, and contacts.
period of five years: a paper-based counseling Besides the CRM delivery processes, Customer
methodology, an ERP system, an operational CRM Profitability Management therefore also covers the
system, and a data warehouse. The more components CRM support and analysis processes of the CRM
Regional Bank added and the better they were architecture. In particular, a closed knowledge loop is
integrated, the greater the benefits were that the bank established in this CRM approach. Relevant customer
achieved. knowledge is collected at all customer contact points
The example of Regional Bank shows how the and then analyzed. The results are disseminated and
employment of information systems within the scope explained through detailed instructions to the
of Customer Contact Management can lead to employees at the customer contact points.
increased proximity to customers, more efficient On the system level, operational and
processes, as well as cost reductions. collaborative CRM systems as well as analytical
CRM systems support the CRM processes. Moreover,
4.3. CRM as Customer Profitability ERP and transaction systems serve as data sources for
Management the data warehouse and analytical systems.
Universal Bank has an exemplary implementation
The strategic objective of CRM as Customer of CRM as Customer Profitability Management. The
Profitability Management is to develop long-lasting, objectives of CRM at Universal Bank are long-term
profitable relationships with customers. This is customer retention and exploitation of the potential of
achieved by increasing customer loyalty and its customer base.
exploiting the potential of the customer base. Universal Bank uses the results of customer
In Customer Profitability Management, a scoring to build the foundation for the campaign
company has to identify and nurture profitable management process. The bank performs a data
customer relationships. Unprofitable relationships mining analysis for each product-oriented campaign
have to be made profitable or abandoned. Extensive to identify those customers who are most likely to buy
data analysis that will not only differentiate between the product. Only the most likely customers are
profitable and unprofitable customers, but will also selected as recipients of a campaign. Moreover,

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within the campaign management process, Universal of the analysis make the active control of migration
Bank calculates the net present value for each possible. According to Universal Bank it achieved a
campaign and makes an investment decision on this return on investment (ROI) of investments in
basis. Depending on the product offered and the analytical CRM infrastructure and employee training
customer selected, a recipient is either transferred to a within two years.
customer consultant in a branch office, to the call The objectives of CRM implementation at
center, or to the mailing department. This is done by Universal Bank are the exploitation of its customer
email, or by an entry in the operational CRM system. potential and the active development of customer
The sales and service management processes do not relationships. The implementation of Customer
differ from the processes in Customer Contact Profitability Management started with the
Management. Besides a customer’s profitability, his construction of a company-wide data warehouse.
development and potential for the enterprise play an Using data mining and OLAP systems, the bank
important role. Loyalty management determines these generates customer profiles and sales opportunities,
factors and actively controls them. Universal Bank and furthermore monitors and plans the long-term
uses a matrix for the classification of its customers development of each individual customer
according to their loyalty and value to the enterprise. relationship. KM helps to support the dissemination
It also uses this matrix to monitor customer and correct use of customer knowledge gathered in
migrations between customer segments as defined in the analytical support processes.
the matrix. Individual product offerings on the basis
Table 2. Types of CRM approaches.
Type Customer Satisfaction Customer Contact Customer Profitability
Management Management Management
Strategic Improvement of customer satisfaction Process efficiency and cost reduction Customer retention and exploitation of
Objectives customer potential
Processes CRM delivery processes CRM delivery processes CRM delivery, analysis, and support
implemented processes
ƒIntegrated CRM system not ƒCollaborative and operational ƒCollaborative, operational, and
necessary CRM systems analytical CRM systems
Systems
ƒKM systems ƒKM systems
implemented
ƒUse of customer data from ERP
and transaction systems
ƒUsage of general measures (e.g. ƒ Collection of customer data for ƒ Analysis of customer data to
service level agreements (SLA), efficient customer support develop different strategies and
Role of customer
customer counseling methods, ƒ IT support provides a single view up- and cross-selling opportunities
knowledge and
customer typologies) without on customers at all customer per customer (or customer
major
differentiation between customer contact points segment)
characteristics
segments ƒ Multi-channel management for ƒ Active development of customer
ƒIT support is not essential cost reductions relationships
Implemented
processes and
systems (dark)
according to CRM
architecture (see
Figures 1& 2)

4.4. Summary of findings 5. Conclusion and further research

The analysis of three case studies has shown that there Building on previous research and comprehensive
are distinct types of CRM approaches in the financial analysis of research literature, we developed a CRM
services industry (Table 2). The types can be reference architecture focused on the process and
distinguished by the use of customer knowledge and system levels. This architecture can be used for the
CRM strategy, processes, and systems. They can be description and classification of CRM approaches in
described using the CRM architecture. companies. We furthermore analyzed CRM case
studies in Swiss and German financial services

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 Proceedings of the 38th Hawaii International Conference on System Sciences - 2005

companies and derived three types of CRM approaches [9] Ives, B. and Learmonth, G. P., "The Information System
in the financial services industry: Customer Satisfaction as a Competitive Weapon", Communications of the
Management, Customer Contact Management, and ACM, Vol. 27, No. 12, 1984, pp. 1193-1201.
[10] Kotler, P., Marketing Management, 11 ed., Prentice
Customer Profitability Management. We described
Hall, Englewood Cliffs, New Jersey, 2003.
each type, using the CRM architecture and a case [11] Österle, H., Business Engineering: Prozess- und
example. The CRM architecture and types can be used Systementwicklung [Process and System Development],
as a structural framework in the analysis of CRM Springer, Berlin, 1995.
approaches in financial services companies, to compare [12] Österle, H., "Geschäftsmodell des Informationszeitalters
the context and objectives with those of other [Business Model of the Information Age]", in: Österle,
enterprises, and to derive new strategies and objectives. H. and Winter, R. (Eds.), Business Engineering,
The small number of analyzed cases limits Springer, Berlin, 2003, pp. 22-43.
generalization. Therefore the types of CRM approaches [13] Payne, A. and Ryals, L., "Customer relationship
management in financial services: towards information-
we developed have to be further validated in empirical
enabled relationship marketing", Journal of Strategic
research, for example, using additional case studies. Marketing, Vol. 9, No. 1, 2001, pp. 3-27.
Regarding further research opportunities, it would [14] Peppard, J., "Customer relationship management (CRM)
be interesting to analyze which environmental factors in financial services", European Management Journal,
influence companies’ respective CRM approach. Vol. 18, No. 3, 2000, pp. 312-327.
Further research needs to evaluate which factors [15] Peppers, D. and Rogers, M., The One to One Future -
influence the type of CRM approach that a company Building relationships one customer at one time,
should pursue. Currency Doubleday, New York, 1993.
[16] Quintas, P., Lefrere, P. and Jones, G., "Knowledge
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