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Modeling behavior in customer relationships for successful CRM

11 June 2012
Risselada
Risselada

Customer relationship management (CRM) is common practice in many firms today. The core of a CRM strategy is to develop strong relationships with customers. Modeling behavior in customer relationships, such as adoption and churn, is crucial for firms to develop a successful CRM strategy.

A recent development which has substantial consequences for customer behavior is the increasing importance of social networks in consumers’ daily lives. In his thesis Hans Risselada presents three studies on modeling behavior in customer relationships with a focus on the role of customer-to-customer interactions.

In chapter 2 he investigates the staying power of commonly used models to predict customer behavior and show that the staying power is very low. In chapter 3 he shows that the effect of social influence on behavior is decreasing from the product introduction onward and is dominated by the effect of direct marketing from the fifth month onward.

Risselada found no significant interaction between the effects of direct marketing and social influence, which illustrates that direct marketing remains an important marketing instrument. In chapter 4 he shows that social influence is mainly determined by network characteristics, such as tie strength (between customers) and the number of contacts of a customer. He also shows that the determinants of social influence differ across products and behaviors. Firms may use our findings to improve their social marketing campaigns, such as referral and viral marketing campaigns.

Curriculum vitae

Hans Risselada (Warmenhuizen, 1982) will be awarded his PhD on 14 June (4.15pm), his thesis supervisors are prof.dr. P.C. Verhoef and prof.dr. T.H.A. Bijmolt. Thesis title is 'Analyzing behavior in customer relationships accounting for customer-to-customer interactions'. Risselada will continue to work as researcher and teacher at the FEB.

Last modified:04 December 2015 09.30 a.m.

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