IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v69y2016i10p4095-4102.html
   My bibliography  Save this article

Customer portfolio management (CPM) for improved customer relationship management (CRM): Are your customers platinum, gold, silver, or bronze?

Author

Listed:
  • Thakur, Ramendra
  • Workman, Letty

Abstract

This article uses the customer portfolio management (CPM) approach to examine how a company can define the value of customers and segment these customers into portfolios. By segmenting customers into portfolios, an organization can better understand the relative importance of each customer to the company's total profit. Such an understanding will help companies retain valuable customers create additional value with these customers through relationship development.

Suggested Citation

  • Thakur, Ramendra & Workman, Letty, 2016. "Customer portfolio management (CPM) for improved customer relationship management (CRM): Are your customers platinum, gold, silver, or bronze?," Journal of Business Research, Elsevier, vol. 69(10), pages 4095-4102.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:10:p:4095-4102
    DOI: 10.1016/j.jbusres.2016.03.042
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296316300625
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2016.03.042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Terho, Harri & Halinen, Aino, 2007. "Customer portfolio analysis practices in different exchange contexts," Journal of Business Research, Elsevier, vol. 60(7), pages 720-730, July.
    2. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    3. Rajagopal & Romulo Sanchez, 2004. "Analysis of Customer Portfolio and Relationship Management Models : Bridging Managerial Dimensions," Microeconomics 0407001, University Library of Munich, Germany.
    4. Persson, Andreas & Ryals, Lynette, 2014. "Making customer relationship decisions: Analytics v rules of thumb," Journal of Business Research, Elsevier, vol. 67(8), pages 1725-1732.
    5. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    6. Grewal, Rajdeep & Chakravarty, Anindita & Ding, Min & Liechty, John, 2008. "Counting chickens before the eggs hatch: Associating new product development portfolios with shareholder expectations in the pharmaceutical sector," International Journal of Research in Marketing, Elsevier, vol. 25(4), pages 261-272.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Viktoriya Stanimirova STANCHEVA, 2017. "Exploring The Effects Of Customer Portfolio Management," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 6(2), pages 1-14, July.
    2. von Janda, Sergej & Polthier, Andreas & Kuester, Sabine, 2021. "Do they see the signs? Organizational response behavior to customer complaint messages," Journal of Business Research, Elsevier, vol. 137(C), pages 116-127.
    3. Nurmala Nurmala, 2018. "Building Competitive Advantage for Economic Performance: A Study of the Palm Plantation Company in West Kalimantan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 172-183.
    4. Perez-Vega, Rodrigo & Hopkinson, Paul & Singhal, Aishwarya & Mariani, Marcello M., 2022. "From CRM to social CRM: A bibliometric review and research agenda for consumer research," Journal of Business Research, Elsevier, vol. 151(C), pages 1-16.
    5. Alexandra Christopoulou & Panos Gialelis, 2021. "Addressing the Challenge of Customer Management for SMEs," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 71(3-4), pages 68-85, July-Dece.
    6. Dalla Pozza, Ilaria & Goetz, Oliver & Sahut, Jean Michel, 2018. "Implementation effects in the relationship between CRM and its performance," Journal of Business Research, Elsevier, vol. 89(C), pages 391-403.
    7. Shinta Rahma Diana & Nandan Limakrisna, 2018. "Strategic Decision Policy of Public Service Agency as Government Institution: Analysis of Government Financial Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 115-118.
    8. Khorramshahgol, Reza & Al-Husain, Raed, 2021. "A GP-AHP approach to Design Responsive Supply Chains for Pareto Customers," Operations Research Perspectives, Elsevier, vol. 8(C).
    9. Bambang Sudiyatno & Elen Puspitasari & Ida Nurhayati & Tristiana Rijanti, 2021. "The Relationship Between Profitability and Firm Value: Evidence From Manufacturing Industry in Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(3), pages 466-476, May.
    10. Maraj Rahman Sofi & Iqbal Ahmad Hakim, 2018. "Customer Relationship Management as Tool to Enhance Competitive Effectiveness: Model Revisited," FIIB Business Review, , vol. 7(3), pages 201-215, September.
    11. Méndez-Suárez, Mariano & Crespo-Tejero, Natividad, 2021. "Why do banks retain unprofitable customers? A customer lifetime value real options approach," Journal of Business Research, Elsevier, vol. 122(C), pages 621-626.
    12. Asmaul Husna & Ibnu Satria, 2019. "Effects of Return on Asset, Debt to Asset Ratio, Current Ratio, Firm Size, and Dividend Payout Ratio on Firm Value," International Journal of Economics and Financial Issues, Econjournals, vol. 9(5), pages 50-54.
    13. Deszczyński, Bartosz & Beręsewicz, Maciej, 2021. "The maturity of relationship management and firm performance – A step toward relationship management middle-range theory," Journal of Business Research, Elsevier, vol. 135(C), pages 358-372.
    14. Tsai, Ming-Chih & Merkert, Rico & Tsai, Mei-Ting & Lin, Shiau-Chi, 2021. "Towards a taxonomy-based preferred-customer model for suppliers in air cargo express service markets," Journal of Air Transport Management, Elsevier, vol. 90(C).
    15. Larsen Barasa & April Gunawan & Bambang Sumali, 2018. "Determinants of Job Satisfaction and it’s Implication on Employee Performance of Port Enterprises in DKI Jakarta," International Review of Management and Marketing, Econjournals, vol. 8(5), pages 43-49.
    16. Minton, Elizabeth A. & Johnson, Kathryn A. & Liu, Richie L., 2019. "Religiosity and special food consumption: The explanatory effects of moral priorities," Journal of Business Research, Elsevier, vol. 95(C), pages 442-454.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gabriel, Steven A. & Kumar, Satheesh & Ordonez, Javier & Nasserian, Amirali, 2006. "A multiobjective optimization model for project selection with probabilistic considerations," Socio-Economic Planning Sciences, Elsevier, vol. 40(4), pages 297-313, December.
    2. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2019. "Sigma-Mu efficiency analysis: A methodology for evaluating units through composite indicators," European Journal of Operational Research, Elsevier, vol. 278(3), pages 942-960.
    3. Mani, Sudha & Luo, Xueming, 2015. "Product alliances, alliance networks, and shareholder value: Evidence from the biopharmaceutical industry," International Journal of Research in Marketing, Elsevier, vol. 32(1), pages 9-22.
    4. Luiz Flavio Autran Monteiro Gomes & Luís Alberto Duncan Rangel & Gisele Dos Santos, 2016. "An AHP-based asset allocation model," International Journal of Business and Systems Research, Inderscience Enterprises Ltd, vol. 10(1), pages 78-99.
    5. Andre, Francisco J. & Riesgo, Laura, 2007. "A non-interactive elicitation method for non-linear multiattribute utility functions: Theory and application to agricultural economics," European Journal of Operational Research, Elsevier, vol. 181(2), pages 793-807, September.
    6. G Dutta & S Basu & J John, 2010. "Development of utility function for life insurance buyers in the Indian market," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(4), pages 585-593, April.
    7. Viktoriya Stanimirova STANCHEVA, 2017. "Exploring The Effects Of Customer Portfolio Management," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 6(2), pages 1-14, July.
    8. Akosah, Nana Kwame & Alagidede, Imhotep Paul & Schaling, Eric, 2020. "Testing for asymmetry in monetary policy rule for small-open developing economies: Multiscale Bayesian quantile evidence from Ghana," The Journal of Economic Asymmetries, Elsevier, vol. 22(C).
    9. Cui, Xueting & Zhu, Shushang & Sun, Xiaoling & Li, Duan, 2013. "Nonlinear portfolio selection using approximate parametric Value-at-Risk," Journal of Banking & Finance, Elsevier, vol. 37(6), pages 2124-2139.
    10. Peter A. Abken & Milind M. Shrikhande, 1997. "The role of currency derivatives in internationally diversified portfolios," Economic Review, Federal Reserve Bank of Atlanta, vol. 82(Q 3), pages 34-59.
    11. Leonard J. Mirman & Egas M. Salgueiro & Marc Santugini, 2013. "Integrating Real and Financial Decisions of the Firm," Cahiers de recherche 1333, CIRPEE.
    12. Dominique Guégan & Wayne Tarrant, 2012. "On the necessity of five risk measures," Annals of Finance, Springer, vol. 8(4), pages 533-552, November.
    13. Banai, Reza, 2010. "Evaluation of land use-transportation systems with the Analytic Network Process," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 3(1), pages 85-112.
    14. Raffestin, Louis, 2014. "Diversification and systemic risk," Journal of Banking & Finance, Elsevier, vol. 46(C), pages 85-106.
    15. Gruber, Lutz F. & West, Mike, 2017. "Bayesian online variable selection and scalable multivariate volatility forecasting in simultaneous graphical dynamic linear models," Econometrics and Statistics, Elsevier, vol. 3(C), pages 3-22.
    16. Gupta, Pankaj & Mittal, Garima & Mehlawat, Mukesh Kumar, 2013. "Expected value multiobjective portfolio rebalancing model with fuzzy parameters," Insurance: Mathematics and Economics, Elsevier, vol. 52(2), pages 190-203.
    17. Hany Shawky & Ronald Forbes & Alan Frankle, 1983. "Liquidity Services and Capital Market Equilibrium: The Case for Money Market Mutual Funds," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 6(2), pages 141-152, June.
    18. Colin Atkinson & Emmeline Storey, 2010. "Building an Optimal Portfolio in Discrete Time in the Presence of Transaction Costs," Applied Mathematical Finance, Taylor & Francis Journals, vol. 17(4), pages 323-357.
    19. Pishchulov, Grigory & Trautrims, Alexander & Chesney, Thomas & Gold, Stefan & Schwab, Leila, 2019. "The Voting Analytic Hierarchy Process revisited: A revised method with application to sustainable supplier selection," International Journal of Production Economics, Elsevier, vol. 211(C), pages 166-179.
    20. Giovanni Bonaccolto & Massimiliano Caporin & Sandra Paterlini, 2018. "Asset allocation strategies based on penalized quantile regression," Computational Management Science, Springer, vol. 15(1), pages 1-32, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:69:y:2016:i:10:p:4095-4102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.