Customer Selection in CRM implementation: Firms' strategies in the competitive market with network externality

Abstract

Customer profitability recognition is easier with CRM enabling technologies and the strategy of firing unprofitable customers prevails in the market. However, in the digital and Internet age, network externality is becoming more important. Therefore, the concern over firing unprofitable customers has increased. Our research is intended to develop strategic guidance for customer selection when flTffis implement CRM in the market with network externality.