CERES :: Browsing by Author "Ryals, Lynette"

Browsing by Author "Ryals, Lynette"

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Open Access
The changing role of sales: viewing sales as a strategic, cross-functional process
(Emerald Group Publishing Limited, 2009-07-01T00:00:00Z) Storbacka, Kaj; Ryals, Lynette; Davies, Iain A.; Nenonen, S.
Purpose – Although there is substantial practitioner evidence for changes in the role and functioning of sales in the twenty-first century, there is little academic research charting new directions for the sales function in a business- to-business context. This paper aims to report on four case studies that illustrate how sales is changing. Design/methodology/approach – The case studies involve large global companies who were changing their existing sales process to adapt to changing circumstances. The organizations comprised four global industries: construction, power solutions, building technology, and electronics and software. Findings – The results demonstrate that sales is changing in three interrelated aspects: from a function to a process; from an isolated activity to an integrated one; and is becoming strategic rather than operational. Originality/value – The results suggest that changes in the role of sales will affect sales processes and the way that the sales function liaises with other depa
Open Access
Creating and capturing value in KAM relationships
(Taylor & Francis, 2007-12-01T00:00:00Z) Ryals, Lynette; Holt, Sue
Questions have recently been raised about whether key account management (KAM) pays off for suppliers. Previous research has been equivocal on this issue. Yet suppliers are increasingly adopting (or being forced by their customers to adopt) KAM, which could be problematic if the supplier is unable to capture value from the relationship. This research examines how suppliers capture value from KAM. First, supplier-influenceable aspects of the value of the customer are explored through an elucidation of the drivers of customer revenues and costs. Then, value capture in KAM relationships is examined through the lens of five research propositions. The first result of the research contributes to theory with a detailed model of the drivers of customer lifetime value. The second result contributes to KAM practice through a confirmation of the five propositions and an exploration of how ten good practice companies capture value from their KAM relationships.
Open Access
Creating profitable customers through the magic of data mining.
(Palgrave Macmillan, 2003-05-01T00:00:00Z) Ryals, Lynette
In the early days of relationship marketing, its proponents argued for customer retention on the grounds that this would increase the lifetime value of the customer and, by extension, that this would increase overall corporate profitability. Research, however, has indicated that, for many organisations, a high proportion of customers are unprofitable. This raises a question about the retention proposition. Increasing the retention of unprofitable customers may be damaging, not beneficial, to organisations. This paper discusses some common data analysis techniques used to identify the most and least profitable customers so that marketing managers can develop effective, appropriately targeted customer management strategies.
Open Access
Cross-functional issues in the implementation of relationship marketing through customer relationship management
(Elsevier Science B.V., Amsterdam., 2001-10-01T00:00:00Z) Ryals, Lynette; Knox, Simon
There is a major change in the way companies organise themselves as firms switch from product-based to customer-based structures. A key driver of this change is the advent of Customer Relationship Management which, underpinned by information systems convergence and the development of supporting software, promises to significantly improve the implementation of Relationship Marketing principles. In this paper we explore the three main issues that can enable (or hinder) the development of Customer Relationship Management in the service sector; the organisational issues of culture and communication, management metrics and cross-functional integration — especially between marketing and information technolog
Open Access
Determining the indirect value of a customer
(Westburn Publishers, 2008-09-01T00:00:00Z) Ryals, Lynette
The issue of accountability in marketing has led to a substantial and growing body of work on how to value customer relationships. Net present value methods (customer lifetime value / customer equity) have emerged as generally preferred ways to assess the financial value of customers. However, such calculations fail to take account of other important but indirect sources of value noted by previous researchers, such as advocacy. This paper examines the development and application of three processes to determine indirect value in business-to- business and business-to-consumer contexts. The research shows that indirect value has a measurable monetary impact not captured by conventional financial tools, and that understanding this changes the way in which customers are managed.
Open Access
Evaluating investements in CRM with real options
(2004-01-01T00:00:00Z) Maklan, Stan; Knox, Simon; Ryals, Lynette
CRM practices are being adopted in most industry sectors to build stronger relationships with customers in order to develop superior customer value and increase shareholder value. This article questions the basis upon which the business case for CRM investments is traditionally made, highlighting the shortcomings of focusing only upon discounted cash flows, and points towards a strategic approach that accounts for such investments in asset value terms. A case study is used to illustrate how to value the returns using both cash flow and strategic investment calculations for comparative purposes. The managerial implications are discussed.
Open Access
Exploring leadership behaviours perceived to enable salesperson performance
(2016-10) Boehnke Peesker, Karen; Ryals, Lynette
This exploratory study builds on previous sales leadership research by examining, comparing, and contrasting sales leaders’ and sales representatives’ perceptions of what leadership behaviours enable salesperson performance. Semi-structured interviews were conducted with sales teams in a global enterprise software company. Semi-structured interviews were transcribed and statements coded into categories of leadership behaviours. Overall the sales professionals perceived the leadership behaviours of coaching, collaborating, championing, customer engaging, challenging, and creating vision enable salesperson performance. References were also made to candidate recruiting, inspiring and rewarding, however these were less frequent. Sales leaders and sales representatives agreed that coaching, collaborating, championing and customer engaging enable salesperson performance, however sales leaders spoke more about coaching, creating vision and candidate recruiting, while sales representatives spoke more about collaborating, championing, customer engaging and challenging. High performing sales representatives referred to coaching and customer engaging behaviours more frequently than average and low performing sales representatives, indicating the importance of these behaviours. Respondents also revealed that the intense pressure to deliver quarterly results made leadership challenging in this environment. This may account for the difference between sales leadership behaviours and leadership behaviours identified in the literature. This study suggests that a high pressure complex sales context might influence the type of leadership behaviours that may be best suited to enable salesperson performance. This study contributes to the field by providing a framework of the sales leadership behaviours perceived to enable salesperson performance, providing confirmation that sales leaders adopt previously identified leadership behaviours in the sales context, and the identification of new leadership behaviours specific to the sales context. It also presents evidence that trust, confidence, optimism and resilience are potential mediators between sales leadership and salesperson performance, and it provides a set of implications for practice.
Open Access
The factors affecting the auditor selection decisions of FTSE 350 companies in competitive tenders
(Cranfield University, 2015-04) Drew, Philip; Ryals, Lynette
Auditing provides an important role supporting the function of financial markets where information asymmetry exists between shareholders and management. The audit market for the largest publicly listed UK companies, those within the FTSE 350, has however come under scrutiny following a number of financial scandals and, driven both by quality and competition concerns as the largest audit firms, the “Big 4” are dominant. Auditor tenure and long periods without competitive tenders have been recurrent concerns and yet how companies select their auditors is under researched. This study examines the influences on the complex decision process underlying auditor selection in FTSE 350 companies during an important period, namely that between the acquisition of Arthur Andersen by Deloitte in August 2002 and the introduction of the September 2012 UK Corporate Governance Code by the Financial Reporting Council. Based on a social constructionist philosophical perspective and adopting a grounded approach, the study covers 60 auditor selection decisions (over half of those identified in the research period) and includes in depth interviews over a period of two years with those who had recently been involved in a FTSE 350 auditor selection process; both from the buy-side and the sales-side. A conceptual model is developed which illustrates five factor groups that this research identified as influencing auditor selection in typically comprehensive proposal processes. These were: Relationships at the start of the proposal process, Service design, Capabilities and competences of the bidding firms, Behavioural influences during the proposal process and Final decision making. It also identifies interrelationships between these factor groups. These results are important because they inform theory and practice at a time when auditor change is becoming a statutory requirement. The study also has implications for other complex purchases of intangible services, particularly other professional services, and potentially for complex decision situations more generally.
Open Access
GAMs, KAMs and Relationship Managers: What they do and how to find them
(School of Management, Cranfield University, 2008-01) Davies, Iain; Holt, Sue; Ryals, Lynette
Open Access
Holding up the mirror: The impact of strategic procurement practices on account management
(Elsevier Science B.V., Amsterdam., 2006-01-01T00:00:00Z) Ryals, Lynette; Rogers, B
Procurement has grown up. It is now a strategic business function that increasingly recognizes the importance of strategic supplier relationships, a reflection of key account management. It is time to assess the impact of this shift on the profession and practice of account management. This paper examines customer adoption of strategic procurement and then discusses the implications this has for account managers at the suppliers serving these customers. New techniques are emerging in these special relationships, including the use of psychological contracts and co-measurement and monitoring. Perceived fairness will also have a major impact on the customer's view of their suppliers. Account managers must recognize these changes or fall victim to supplier delusion: the belief that they are performing better than they really are.
Open Access
Key account management in an Arab context
(Cranfield University, 2011-12) Al-Hussan, Fawaz Ziyad Ihsan; Ryals, Lynette
This study sought to contribute to the literature on key account management (KAM) relationships. In doing so, it aimed to address a number of gaps in the existing literature, particularly a noticeable lack of research into key account management in developing economies, as opposed to developed economies. More specifically, the study sought to examine the dynamics of key account management relationships in an emerging economy in the Arab World. The main research question to address was: How is KAM relationship management applied in an Arab context? The research utilised 50 cross-sectional semi-structured in-depth interviews to achieve the study’s aim. More specifically, the study was based upon a sample of recipients involved with key accounts from supplier organisations which operated in different sectors and had different ownership – local and foreign. Primary data was gathered through in-depth semi-structured interviews primarily with key account managers, and with company directors, marketing and sales managers, and selling/support teams. In general, the findings revealed that there are informal and formal aspects of KAM relationships in an Arab context that complement each other. These have some similarities and differences with the Western context. In particular, similarities appeared mainly along the formal aspects such as, roles and duties of key account managers (KAMgrs), identification and selection criteria of key accounts, special treatment and activities carried out with key customers; the actors involved including senior managers and support teams; and the resources utilised. However, differences existed in the selection and the recruitment criteria and some competencies that were Arab specific, the degree of involvement of senior managers differ significantly from what is noted in the KAM literature. As for the informal aspect, that is manifested in Wasta and family connections, trust, and personal involvement, which makes the KAM relationship management approach in an Arab context uniquely different and plays a major role in how customers are acquired and retained and the overall management of key customers. Furthermore, evidence shows that there is a tendency to transfer Western KAM practices to the Arab world, with some adaptation to take into consideration the country-specific and contextual factors. Overall, it is argued, that the study’s findings contribute to existing knowledge in a number of ways. First, they extend our knowledge into key account management in an Arab context and confirm the importance of both the formal and informal aspects in managing KAM relationships. They also add weight to the view that in Arab cultures personal and affective/emotional dimensions of the relational factors are given more importance, compared to the impersonal and calculative aspects that are more emphasised in the West. The findings contribute to existing knowledge regarding KAM segmentation and the importance of the personal profile in an Arab context vis a vis the business profile, and they validate the view that a process of crossvergence of management practices is occurring across borders. The findings, however, challenge the view that KAM can be rolled out unchanged into any international context. They also discover the competencies required for Arab KAMgrs. Finally the findings contribute to existing knowledge by discovering the benefits of Wasta for key account managers.
Open Access
Key account manager's internal selling role : an exploration of interpersonal conflict
(Cranfield University, 2008-11) Speakman, James Ian Forbes; Ryals, Lynette
Acting in a boundary spanning role within their organisations, the key account manager in representing their customers’ needs internally is required to manage a wide range of complex internal relationships. This can often lead to incidents of conflict between the key account manager and other individuals or groups of individuals within the organisation in non-sales functions. Using the Critical Incident Technique (CIT), (Flanagan, 1954) together with an interpretive framework for data coding (Spiggle, 1994), this research investigates conflict and the key account manager’s internal selling role. This research also explores how the key account manager perceives intraorganisational, interpersonal conflicts and investigates the complex behavioural sequences adopted to manage them. In doing so this research addresses some of the shortcomings of the traditional view of the nature of organisational conflict and how it is managed while extending our understanding of the key account manager’s internal selling role. In contrast to the majority of research into personal selling, this research takes an interpretive approach through the analysis of transcripts from a series of CIT interviews with key account managers in the field. Twenty-nine key account managers from seven participating FMCG, Blue Chip organisations in the U.K. and U.S. participated in the research. From the CIT interviews conducted, 112 critical incidents were described with both positive and negative outcomes. This research provides further insight into the complexity of conflict, suggesting conflict is inherent within the key account management internal selling role, that incidents of conflict do not occur in isolation, that these conflict episodes are complex, having multiple components and that a combination of behaviours can be used in their management. In addressing these issues in the key account management context, this research further develops our knowledge of personal selling and the key account manager’s internal selling role by providing an analysis of the recollections of how conflict is perceived and managed by the key account managers involved.
Open Access
Key Account Planning: Benefits, Barriers and Best Practice.
(Taylor & Francis, 2007-05-01T00:00:00Z) Ryals, Lynette; Rogers, B
Although strategic planning has been part of the management function for as long as anyone can remember, the emergence of key account plans as a critical subset of the marketing plan in business-to-business markets has not attracted much analysis. This gap needs to be addressed, as key account plans have their own unique complexities. Moreover, the importance of key account plans is increasing. There is a need for a more widespread understanding of the benefits of key account planning, encompassing processes and outputs. Based on a four- phase research project in 78 international companies, this paper describes current best practice in key account planning and plans. The research demonstrates the benefits of key account planning and sets out a framework for implementing key account planning as a business process. The paper goes on to describe the contents of a key account plan and to note some common defects found in such plans.
Open Access
Key Customers: Identifying and implementing IT solutions that add value to key account management strategies
(School of Management, Cranfield University, 2004-07) Mouncey, Peter; McDonald, Malcolm; Ryals, Lynette
Open Access
Making customers pay: measuring and managing customer risk and returns
(Taylor & Francis, 2003-09-01T00:00:00Z) Ryals, Lynette
CRM (Customer Relationship Management) builds on the Relationship Marketing idea that lifetime relationships with customers are more profitable than short-term transactional relationships. However, subsequent work on the profitability of customers has shown that some customers are very unprofitable. This leaves managers with a problem: how to focus their relationship management efforts to maximise shareholder value. A suggested theoretical approach is to view the customer base as an investment portfolio. This paper uses the portfolio management model of risk and return to explore the measurement of returns and of the risk of the customer. Some implications for CRM managers are outlined.
Open Access
Managing Customers Profitably
(2009-04-01T00:00:00Z) Ryals, Lynette
Open Access
Managing Key Business-to-Business Relationships
(Sage Publications, 2007-01-01T00:00:00Z) Ryals, Lynette; Humphries, Andrew
Key account management (KAM) is a rapidly growing area of interest in business- to-business marketing. However, unnoticed by marketing, a quiet revolution has taken place in supply chain management (SCM), where the traditional emphasis on least-cost transactions has given way to a focus on long-term relationships with a few key suppliers. It is thus apparent that the two disciplines are converging. This article uses a cross-disciplinary approach to explore whether these developments from the field of SCM provide insights into key business-to- business relationships. A detailed case study of a long-term relationship between a business-to-business services provider and a key customer in the construction industry suggests there is a definable overlap. The supply chain model illuminates five important elements of KAM and offers a promising method for the evaluation of such relationships. As a result of the research, both supplier and customer companies implemented actions to improve and strengthen this important relationship.
Open Access
Measuring and managing customer relationship risk in business markets.
(Elsevier Science B.V., Amsterdam., 2007-08-01T00:00:00Z) Ryals, Lynette; Knox, Simon
There have been repeated calls from top management and marketing academics for greater accountability in marketing so that the financial returns of marketing investments can be more robustly evaluated. These are coalescing around the issue of whether or not marketing delivers shareholder value. One promising line of enquiry explores customer lifetime value and the profitable management of these relationships. Although helpful, this approach fails to make the final link with shareholder value since customer lifetime value is still essentially a profit or cash flow measure and does not fully account for customer risk. This paper describes empirical research which explores differing approaches to measuring customer risk and the creation of shareholder value through customer relationship management (CRM). We develop a customer relationship scorecard which proves an innovative tool for managers to use in determining the risks in their customer relationships and developing risk mitigation strategies. The scorecard is then used to forecast retention probabilities, from which a risk- adjusted customer lifetime value is calculated. Both the scorecard and the calculations have an impact on the CRM practices of the customer relationship managers. From a theoretical perspective, an enhanced consideration of customer risk and returns is an important additional step towards demonstrating that marketing creates shareholder value.
Open Access
Measuring Risk-adjusted Customer Lifetime Value and its Impact on Relationship Marketing Strategies and Shareholder Value
(Emerald Group Publishing Limited, 2005-01-01T00:00:00Z) Ryals, Lynette; Knox, Simon
The calculations which underlie efforts to balance marketing spending on customer acquisition and customer retention are usually based on either single- period customer profitability or forecasts of customer lifetime value (CLTV). This paper argues instead for risk-adjusted CLTV, which is termed the economic value (EV) of a customer, as the means for marketing to assess both customer profitability and shareholder value gains.
Open Access
New trends in innovation and customer relationship management: a challenge for market researchers.
(2008-01-01T00:00:00Z) Maklan, Stan; Knox, Simon; Ryals, Lynette
For decades, one of the key roles of market research has been to help companies forecast customer acceptance of innovation and of changes to the marketing mix (the 4Ps). However, traditional market research is in danger of being left behind by new practices in sales, marketing and R&D. Reflecting an increasingly participative approach to customer relationships, these disciplines are moving towards customer involvement and co-creation of value rather than innovation mainly generated by head office and only then tested among customers. Co- creation involves working participatively with customers to enhance the value they get when buying and using goods and services. It enables firms to understand and respond to deeper and more valuable customer needs, and reduces the inherent risks of innovation. Nor is this increasing trend towards co- creation limited to new product introduction. As companies invest in customer relationship management (CRM) programmes, they need to design new forms of relationship with those directly affected: their customers. As customers use internet-related technologies to manage their relationships with suppliers, co- creation will become a more important component of innovation and growth strategies. In this context, traditional market research approaches begin to look outdated. The authors illustrate, with a case study of a dotcom company, how action research can provide tools and methods by which market researchers can assist and improve the co-creation process. The implications for market researchers and research practices are identified.