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

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  • 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
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    References listed on IDEAS

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    Cited by:

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    2. 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.
    3. 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.
    4. 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.
    5. 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).
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    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.

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