Proceedings of the 12th European Conference on Knowledge ...

Kamila Tislerova
development should be seen as an interactive process involving both suppliers and customers. The
relations between suppliers and customers consist <strong>of</strong> <strong>the</strong> three crucial aspects <strong>of</strong> activity links,
resource ties and actor bonds. The level <strong>of</strong> closeness between <strong>the</strong>se aspects gives rise to three
different levels <strong>of</strong> relationships (Ford, McDowell, 1999):
(1) Transactional relationships, involving no integration between supplier and customer and <strong>the</strong>
supplier’s <strong>of</strong>fering is undifferentiated from that <strong>of</strong> o<strong>the</strong>rs.
(2) Facilitative relationships, in which <strong>the</strong> customer also wishes to acquire relative undifferentiated
products at <strong>the</strong> lowest possible cost but both parties are willing to invest in activity links and
resource ties to increase <strong>the</strong> cost benefits <strong>of</strong> <strong>the</strong> relationship.
(3) Integrative relationships, wherein <strong>the</strong> customer expects benefits beyond those <strong>of</strong> lower costs and
extending to <strong>the</strong> revenue benefits <strong>of</strong> enhanced performance <strong>of</strong> its own <strong>of</strong>fer. In <strong>the</strong>se
relationships, <strong>the</strong> supplier frequently has a representative on site, working with <strong>the</strong> customer’s
development staff with <strong>the</strong> aim <strong>of</strong> having his products designed into <strong>the</strong> customer’s product.
4.4 The indirect value <strong>of</strong> a customer
The indirect value <strong>of</strong> a customer is <strong>the</strong> additional value (over and above <strong>the</strong> direct financial value
measured by customer lifetime value/customer equity) that accrues to <strong>the</strong> firm through <strong>the</strong>ir
relationship with that customer. Probably <strong>the</strong> most-explored area is advocacy, or word <strong>of</strong> mouth,
identified very early as an important element in relationship marketing and associated not just with
satisfaction but also with <strong>the</strong> relationship duration. Advocacy has repeatedly been shown to have a
strong impact on purchasing behaviour and can be influenced by marketing strategies (Harrison-
Walker, 2001). Consequently, it is positively correlated with company growth). The advocacy concept
has been extended to include customer reputation or reference ability (Stahl, Matzler and Hinterhuber
2003).
Fur<strong>the</strong>r relational benefits from customer relationships include learning (Stahl, Matzler and
Hinterhuber 2003) and innovation (Thomke and von Hippel 2002). Learning and information benefits
contribute slightly differently to <strong>the</strong> value <strong>of</strong> <strong>the</strong> firm. Ra<strong>the</strong>r than reducing <strong>the</strong> costs <strong>of</strong> customer
acquisition. They enhance <strong>the</strong> overall competitiveness and revenues/efficiency <strong>of</strong> <strong>the</strong> firm (Cravens,
Piercy and Prentice 2000). It is difficult to account for indirect value. For example, <strong>the</strong> impact <strong>of</strong>
advocacy or reference benefits is to reduce <strong>the</strong> cost <strong>of</strong> customer acquisition, which increases <strong>the</strong>
financial value <strong>of</strong> <strong>the</strong> acquired customer but does not affect <strong>the</strong> value <strong>of</strong> <strong>the</strong> referring customer.
Learning and innovation benefits may or may not increase <strong>the</strong> financial value <strong>of</strong> <strong>the</strong> customer
generating <strong>the</strong>m, through increased sales or reduced costs, but <strong>the</strong>y can also increase <strong>the</strong> overall
revenues or improve <strong>the</strong> overall efficiency <strong>of</strong> <strong>the</strong> company
5. The research findings
5.1 Survey findings – commentary and recommendations
In 89% <strong>of</strong> companies (respondents for this research), top management recognises Customer
Knowledge Management as an important part <strong>of</strong> <strong>the</strong> business strategy. According to <strong>the</strong> following
findings unfortunately <strong>the</strong>re is a gap between <strong>the</strong> top management effort and <strong>the</strong> necessary results.
People in <strong>the</strong> organisation (just over 70%) are aware <strong>of</strong> <strong>the</strong> need to proactively manage customer
knowledge but at <strong>the</strong> same time almost 61% consider this activity to be too time-consuming at <strong>the</strong>
expense <strong>of</strong> <strong>the</strong>ir “regular” duties. It should be alarming for <strong>the</strong> companies that employees are able to
separate <strong>the</strong>ir work according to <strong>the</strong>ir job description and <strong>the</strong>ir involvement in customer knowledge
management and treat <strong>the</strong>se two items differently.
In 75% <strong>of</strong> <strong>the</strong> companies <strong>the</strong>re is hardly any duplication <strong>of</strong> effort in <strong>the</strong> organisation so probably <strong>the</strong>
main concept is implemented properly.
Marketing managers do not (71%) evaluate and improve <strong>the</strong>ir incentives for customers. Partly
because <strong>the</strong>y consider it “too continuous to be able to measure” and partly because <strong>the</strong>y share this
“duty” with customer service managers. The recommendation is to treat this with incentives similar to
standard marketing actions (start, end, evaluation).
Surprisingly more than half <strong>of</strong> <strong>the</strong> managers do not have <strong>the</strong> feedback from a product
modified/developed upon customer suggestion (managerial accounting – to express <strong>the</strong> amount
which was saved). This feedback on <strong>the</strong> following sales <strong>of</strong> <strong>the</strong> modified product can also be regarded
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