Analyzing the Diffusion of Global Customer Relationship Management: A Cross-Regional Modeling Framework

Abstract

Most recent research on customer relationship management (CRM) has been restricted to developed economies such as the United States. Researchers have done little to study the growth of CRM in developing markets such as Asia and South America, which are becoming increasingly relevant to business today. With the changing business climate, firms are beginning to embrace the concept of managing customers rather than products. This leads managers down the path of customer centricity, and here lies the relevance of truly global CRM (GCRM). The authors conduct a qualitative study to understand the concept of GCRM and its relevance. Their results quantify the growth of CRM on a global scale using a diffusion modeling framework. The results of the generalized cross-regional diffusion model indicate that there is untapped market potential in the GCRM market, with varying adoption patterns across regions. The authors also propose a conceptual framework to understand the factors that affect cross-regional learning in GCRM adoption. In addition, the study provides insights into implementation and calibration of a GCRM framework and directions for further research.

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