Implementing a customer relationship strategy: The asymmetric impact of poor versus excellent execution

Mark R. Colgate, Peter J. Danaher

Research output: Contribution to journalArticleResearchpeer-review

144 Citations (Scopus)

Abstract

The benefits of developing customer relationships are well established. However, a well-intentioned relationship marketing strategy may fail because of poor implementation. In this study, the authors look at the effects of implementing a customer relationship strategy. Specifically, they examine the implementation of a personal-banker strategy as a means to developing customer relationships in the retail banking industry. The authors show that an "excellent" personal banker can increase overall customer satisfaction and loyalty compared to customers who do not have a personal banker. However, a poorly performing personal banker can result in lower overall customer satisfaction and loyalty than if no personal banker had been available. Moreover, the effects seem to be asymmetric, with the negative effects of a poor relationship strategy exceeding the positive benefits of an "excellent" strategy.

Original languageEnglish
Pages (from-to)375-387
Number of pages13
JournalJournal of the Academy of Marketing Science
Volume28
Issue number3
DOIs
Publication statusPublished - 1 Jan 2000

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