An Integrated Framework and a Dynamic Model of Customer Relationship System

Abstract

Today's business managers is facing increased pressures to develop and retain economically valuable customers. They are attempting to find out what rules the development of customer relationship (CR) follows when their carrying out customer relationship management (CRM). Regarding CR as a system engineering, this paper develops a conceptual integrated framework of customer relationship system (CRS), the framework including five aspects of market, process, behavior, evaluation and data, and describes each of the five aspects as a model. Based on the framework, this paper also proposes a dynamic model of CRS theoretically, and describes in detail these aspects of market, process and evaluation. The dynamic model indicates the development of CR depends on current customer state, evaluation of value from customer and enterprise, as well as value-equipoise condition between customer and enterprise. The dynamic model of CRS expresses the basic dynamic characteristic of CR.